The Nonprofit Finance Fund (NFF) recently released the results of its State of the Nonprofit Sector survey. NFF, a social sector lender and consultant, has surveyed nonprofit leaders across the country on the financial, programmatic and organizational health of their organizations for the last eight years.

This year’s results reflect responses from 3,369 individuals in nonprofits with total operating expenses ranging from $50,000 to over $20 million.

Three key trends were identified in NFF's findings:

• The demand for services is still rising faster than nonprofits’ ability to meet it.

  • 86 percent of respondents say the demand for services keeps rising.

  • 57 percent say they can’t meet demand; that figure rises to 65 percent among nonprofits that serve low-income communities.

• Despite the challenges, nonprofits continue to invest in programs, staff and strategies.

  • 54 percent increased staff and 55 percent increased compensation in 2017.

  • 52 percent expanded services in 2017 and 63 percent plan to do so in 2018.

  • 68 percent plan to partner or collaborate with other nonprofits in 2018.

  • 37 percent plan to formally engage in advocacy or policy in 2018.

• Nonprofit leaders worry on behalf of the people they serve.

  • Affordable housing is the most-cited critical client need (40 percent). Many CMF members are working in affordable housing statewide. As CMF reported, Michigan ranks 6th in the country for the population of homeless students.

  • Other top needs include youth programs (24 percent), mental and behavioral health services (22 percent) and financial capability (21 percent).

This year’s survey was unique in that questions were added to capture information on nonprofits’ leadership diversity and their focus on racial inequity. Highlights:

• 44 percent increased leadership and staff diversity in 2017; 60 percent say they plan to increase leadership and staff diversity in the next 12 months.

• 63 percent report that their work includes addressing racial inequity. That number jumps to 79 percent when looking at Michigan alone.

When looking at whether nonprofit organization leaders include individuals who identify as people of color, Michigan again seems to be well above national numbers.

• Of the 77 Michigan respondents, 36 percent share that more than half of their board members identify as a person of color compared to 17 percent of respondents in all other states.

• Of the 76 respondents from our state, 30 percent report that the executive director or CEO identifies as a person of color compared to again only 17 percent of other nonprofit organizations.

• Of the 76 respondents from Michigan, 37 percent say more than half of their senior leaders identify as people of color; that number drops to 20 percent in all other states.

Work focus areas are more closely aligned. Both in Michigan and across the nation, human services, housing/shelter, education and arts/culture all rank in the top focus areas with slight differences in their rank order. Work connected to youth and civil rights/advocacy are slightly more common focus areas in Michigan.

Focusing on those they serve; 71 percent of the responding 82 Michigan nonprofit leaders report that they primarily or exclusively serve low-income populations compared to 64 percent nationally.

NFF suggests the survey data be used to open conversation on issues that can be challenging discussion topics.

“Constructive dialogue on how nonprofits are facing challenges and planning for sustainable futures is essential to move the dial on community issues,” Kerry Sullivan, president, Bank of America Charitable Foundation, said in an NFF press release. “The survey findings can help further inform funder-nonprofit conversations on strategic support.”

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