Arizona Nonprofits Ride Out the Economic Storm

January 2010 Arizona Nonprofits Economic Survey Results

In January 2010 the Alliance of Arizona Nonprofits sent out a survey to nonprofits across the state asking about the effects of the recession on their operations.  This was a follow-up to the survey done in February 2009.  Below are the results of this survey. 

Survey Highlights

  • Nearly 6 out of 10 nonprofits experienced a drop in revenues in 2009
  • 64% of organizations reduced or will reduce their budgets in 2010.

Question: If you experienced or expect to experience a decrease in revenues, indicate the approximate percentages of decrease for each type of revenue source below.

  • Individual contributions:  53% of organizations lost revenues  (20.2% average decrease)
  • Corporate support:  48% lost revenues  (23.6% average decrease)
  • Government sources:  44% lost revenues  (24.9% average decrease)
  • Foundations:  40% lost revenues  (20.6% average decrease)
  • Earned income:  27% lost revenues (17.7% average decrease)
  • On average, revenues decreased 22.3% in 2009 (more than 2008)
  • 85% of nonprofits expect demand for their services to rise in 2010

Question: In general, what strategies are you deploying to respond to service demand increased?

  • We are able to absorb increased demand, but are reducing our costs to handle it. 31%
  • We are able to absorb increased demand with no impact on our bottom line.  24% 
  • We are cutting the level of service we can provide to each recipient, but still serve all recipients who demand service.  14%
  • We are cutting the number of recipients of our services, while maintaining the same level of service for each recipient.  14%
  • We are both cutting the level of service for each recipient and cutting the number of recipients. 9%
  • We will experience a general decline in quality of our services. 7%


  • 65% of nonprofits put expansion plans on hold

  • Only 38% of nonprofits reported layoffs of one or more employees. Further, 85% of nonprofits do not anticipate layoffs before the end of 2010.  Based upon the survey population, and an extrapolation to the sector as a whole, we estimate that no more than 3,500 nonprofit paid positions were lost in 2009.

  • Half of nonprofits had to tap their reserves

  • One quarter of nonprofits experienced late payments on contracts

  • One out of four nonprofits is considering or reviewing possibilities for merger with other nonprofits

  • 82% reported no decline in volunteerism

To read the full report from the survey click here.