58% of Nonprofit Employees Report Program Cuts Within Their Organization

Businesses have endured some of the most difficult times throughout the pandemic — and nonprofits are no exception. From program reductions to layoffs, nonprofits have had to adjust for these unprecedented economic and social changes.

According to a 2020 survey from Eagle Hill Consulting, 58% of nonprofit employees at the time reported budget cuts in 2020, while almost half (49%) expected more cost-cutting measures to be taken throughout 2021. Without a doubt, the pandemic disrupted and continues to disrupt the nonprofit industry, forcing organizations to change or restructure their operations.

Nonprofit employees facing job uncertainty

Nonprofit employees have felt the pressure of the pandemic, with an overwhelming majority (88%) revealing that the COVID-19 crisis has affected their work responsibilities. Social-distancing regulations and travel restrictions are just some of the challenges nonprofit employees face day-to-day. Another survey found that the pandemic may make remote work — among other changes — permanent.

Unsurprisingly, nonprofit budgets have felt an impact due to the pandemic. Over 58% of employers cut costs in 2020, and 49% of employees, according to the 2020 survey, expected these budget changes to continue in 2021. In the second half of 2020, the survey found these direct impacts on nonprofit employees:

Nonprofit employees had expected similar changes to occur into 2021, including program reductions (32%), hiring freezes (32%), salary reductions (23%), layoffs (20%) and furloughs, (17%) as the pandemic continued to rage on.

On the other hand, another survey found that 81% of companies have not reduced workers' base compensation, revealing that the nonprofit sector faces more economic strains than other businesses.

Fundraising efforts shifted to COVID-19 relief and racial justice

The crisis has had an impact not only on nonprofit employees in the workplace, but also in nonprofits' fundraising efforts to support economic and social recovery efforts. In the second half of 2020, 51% of nonprofits raised money for COVID-19 relief, while 19% fundraised for racial justice causes.

Although these efforts may stray from the nonprofit's mission, this data demonstrates how organizations have quickly adapted since the start of the pandemic.

Diversity and inclusion efforts increase

Nonprofits have not only changed their fundraising goals, but also introduced an overhaul of their internal operations. For instance, 58% of employees reported that leadership implemented new and improved goals and activities related to diversity and inclusion.

In 2020, over half of employees cited that their respective organizations had increased the following efforts within the workplace in the previous six months:

Amid budget costs and job insecurity, nonprofits have been proactive and adopted these helpful changes to make workplaces more inclusive. In comparison, another survey found that nearly 8 in 10 employees revealed that their employers had not implemented any changes related to diversity in the past year.

Methodology: Eagle Hill Consulting randomly sampled and surveyed 505 nonprofit employees across the United States. This survey took place in October 2020.