Report: Nonprofit Sector Recovering, Open to Expand

The BDO Survey: Nonprofit Sector Recovery and Expansion Plans

A recent survey conducted by the accounting firm BDO revealed that the nonprofit sector has largely rebounded from the challenges posed by the COVID-19 pandemic. Despite lingering concerns regarding political and economic uncertainties, nonprofit leaders are forging ahead with plans for growth and expansion.

The Nonprofit Standards: A Benchmarking Survey, published by BDO, showcased several positive trends within the sector. Over half of the respondents reported an increase in revenue during the previous fiscal year, and a significant majority expressed satisfaction with the strong workplace culture. Encouraged by these developments, more than half of the leaders indicated their intentions to invest in new programs, with a substantial portion planning to expand or redefine their mission scope.

Noteworthy investments in areas like digital transformation have yielded favorable results for nonprofits, prompting the need for strategic reflection and potential pivots. The report emphasized the importance of evaluating successful strategies to sustain and identifying areas for improvement.

However, the survey also highlighted areas of concern. While a majority of nonprofit leaders anticipate revenue growth in the upcoming year, there has been a 10-point decrease compared to the previous year’s projections. Organizations are increasingly building reserves and scaling back on advocacy spending, reflecting apprehensions related to the 2024 elections and economic uncertainties.

Despite these challenges, nonprofits are embracing change and innovation. With a focus on technology investments, particularly in AI, organizations are positioning themselves for the future. Andrea Espinola Wilson, managing principal at BDO, noted the sector’s transition to proactive planning and strategic foresight.

Examining where nonprofits plan to allocate increased resources provides insight into their priorities. Enhanced talent acquisition and investment in new programs are among the top initiatives. Leaders are responding to pressures from board members, evolving constituent needs, and the desire to expand into new realms.

As nonprofits navigate external pressures and internal restructuring, the report underscores the sector’s resilience and adaptability. Strategic planning in response to stakeholder demands, alongside a focus on mission alignment and program development, characterizes the sector’s forward-thinking approach.

Based on responses from 250 nonprofit leaders across various sectors, the survey sheds light on the sector’s recovery trajectory and expansion strategies. The willingness to embrace change and pursue growth amidst challenges reflects the sector’s commitment to evolving and serving its communities.