Charities Expect to Raise More in 2017, but Many Still Worry About Future

Two-thirds of U.S. nonprofits expect to raise more money in 2017 than last year, even as they worry about an uncertain political and economic future, according to a new survey of more than 900 charity leaders and fundraisers.

Forty-six percent of those surveyed in January and February by the Nonprofit Research Collaborative are concerned about politics and the economy, while 34 percent are worried about issues specific to their organizations, like low staffing levels and an inability to effectively market their nonprofits. Another 20 percent were concerned about fundraising challenges, including their organization’s ability to build up a major-gifts program, acquire new donors, or use of technology to raise money.

Nonprofits’ fear about the political climate is almost certainly driven by President Trump’s surprise victory in November. During the campaign, Mr. Trump promised to slash federal spending, including programs that provide significant funding to nonprofits; his White House has since delivered a budget proposal that would follow through on many of those promises.

“It’s unsettled times,” says Melissa Brown, manager of the Nonprofit Research Collaborative. She said that fundraisers and nonprofit leaders are aware that philanthropy likely won’t make up for the cuts in federal spending that Mr. Trump has proposed, which is contributing to anxiety at nonprofits.

Fewer Meet Goals

In 2016, 60 percent of nonprofits raised more money than they did in 2015, according to the study.

That’s lower than the percentage of nonprofits that said the same in 2015 — when 65 percent of nonprofits said they raised more money than in the 2014.

Fewer charities raised the amount of money they were aiming for last year than did in 2015 — 68 percent compared with 73 percent.

The decline in nonprofits meeting their fundraising goals can be attributed to unrealistic expectations, lack of a contingency plan for when an expected donation fell through, or capital-campaign fundraising that diverted money from annual giving campaigns, according to the study.

Despite those declines, Ms. Brown still sees 2016 as a strong giving year. “It’s a down shift from some of the great years that we saw in 2014 and 2015,” Ms. Brown said. Still, she adds: “60 percent saying they raised more is still a good number.”