OneStar Foundation President and CEO Chris Bugbee, left, and President and CEO of United Ways of Texas Adrianna Cuellar Rojas
A new report from United Ways of Texas and OneStar Foundation issued today (Monday, Aug. 17) on National Nonprofit Day highlights the impact that COVID-19 has had on the Texas nonprofit sector.
Impact of COVID-19 on Texas Nonprofit Organizations includes the results of surveys of Texas nonprofits done across the state and highlights key themes regarding the impact of COVID-19 on Texas nonprofits. The report also offers opportunities to strengthen the nonprofit sector, which is a key economic driver in our state.
Key highlights in the report include:
• The majority of Texas nonprofits are providing direct support to those most impacted by the pandemic and are stepping up to do more. More than 70 percent of nonprofits that responded to a statewide survey have changed their operations or services so that they can more directly support the COVID-19 response.
• Nonprofits throughout the state have been severely affected by the pandemic; even those not directly responding to COVID-19 (e.g. arts and cultural organizations) are facing financial difficulties. Some 70 percent of survey respondents said that their budgets had been impacted or will likely be impacted by COVID-19’s strain on the economy. Additionally, 82 percent of nonprofits have canceled or plan to cancel revenue-generating programs or events, which will affect their financial prospects.
• The COVID-19 pandemic is crippling the sector’s ability to sustain an important workforce and provide critical services that all Texans depend on. More than 24 percent of respondents have reduced employee hours or instituted furloughs or lay-offs, and 19 percent have instituted a hiring freeze.
• The pandemic and resulting financial strain are impacting the ability of the Texas nonprofit sector to serve their communities on a day-to-day basis. Specifically, nearly 69 percent have experienced a disruption of services to clients, and 62 percent have experienced an increase in demand for services from clients and communities.
• Texas nonprofit organizations and the communities they serve need flexible financial resources right now.
The report also offers suggestions on ways that policymakers, philanthropy and business leaders can “ensure Texas nonprofits have the capacity, resources and flexibility to best serve their communities now and well beyond the COVID-19 pandemic.”
Chris Bugbee, president and CEO of the OneStar Foundation, said, “Whether on the frontline serving meals, supporting new models for learning or helping people receive health care and access to social services, our communities depend on nonprofits to respond to the needs of Texans during this pandemic. While nonprofits are facing significant increases in demand, they are also experiencing decreases in donations and other revenue. It’s vital to the recovery of Texas that we work together to keep the sector strong.”
Adrianna Cuellar Rojas, president and CEO of United Ways of Texas, added, “Throughout this pandemic, nonprofits across our state have risen to the challenge of supporting Texans in need by being nimble and innovative to tackle the complex issues that our communities are facing. We hope that policymakers, business leaders, and other public officials will explore opportunities to support our Texas nonprofit sector so that they can continue to meet the challenging situations that this pandemic has created.”
Now, more than ever, the organizations’ leaders said, nonprofits need event more support and resources from state and local governments as well as from business and philanthropy. To ensure the nonprofit sector “can continue its important role for our state,” they suggested, nonprofits, funders, businesses and governments must work together to mitigate negative short and long-term impacts to the sector and communities overall.
And, they added, “Advocacy is more important than ever.”
— Tammye Nash
