Nonprofit Organizations’ contribution in fighting COVID-19
COVID-19 is creating an evolving situation with varied impacts around the world and across the United States. Americans are looking for ways to help others who have been impacted by the virus, and many can do that through a nonprofit organization. Medical, disaster relief and housing-based nonprofits are well-positioned to support relief efforts for the COVID-19 coronavirus; however, nonprofits from other sectors have increased their support or redirected funds to create opportunities to provide immediate help.
According to the National Council of Nonprofits, most nonprofits are small and community-based. They serve the local community's needs, and 92 percent spend less than $1 million annually. Economic uncertainty impacts vulnerable populations and creates needs above and beyond the usual demands of local nonprofits who are now working overtime to find more resources. At the same time – the economic uncertainty has impacted donations, and many nonprofits have had to cancel their usual income driving programs and fundraising events. As of March 2020, 73 percent of nonprofits saw a decrease in revenue. For many donors, the impact of COVID-19 caused a desire to give in their backyard. Given the dramatic decrease in employment opportunities, restaurant workers, home care workers, nannies, and small business owners/workers are looking for more support. There have been tremendous efforts in addressing mounting food insecurity as well as a focus on childcare, mental and behavior health, and emergency financial assistance. Some organizations are creating partnerships with food producers for restaurants and food banks since the needs of restaurants has decreased dramatically. The homeless population is at significant risk for COVID-19 and other complications with staying safe and clean. Various nonprofits are providing temporary housing and meals for those who are especially vulnerable.
Nonprofits in the medical community have been sending aid to countries hit hardest by COVID- 19. Their goals are to strengthen infection control, contact tracing, providing clean water and sanitary supplies, and blood donation drives. Companies are transitioning to creating masks, hand sanitizers, and other personal protective equipment to frontline health care workers and first responders.
Not just medical nonprofits are expanding services during the pandemic. Many colleges, private schools, and education-based nonprofits are raising additional funding for financial aid, personal protection equipment, remote learning technology, and teacher resources to ensure students can continue their education and adapt to the new learning environment. Arts organizations are supporting creative and entertainment workers who are impacted by the coronavirus crisis and promoting arts education virtually. For those with compromised immune systems, nonprofits have transitioned their services to be at home or delivered to ensure the person can stay home and stay safe. Volunteers are delivering groceries, meals, medication, and other supplies to those at risk. Organizations are partnering with companies to facilitate large donations of technology needs such as headphones, chargers, and iPads to hospital patients to help them keep in touch with family, telehealth appointments, and children doing virtual learning. Other organizations are donating computers or and discounted broadband services.
According to The Chronicle of Philanthropy, coronavirus-related giving reached $10 billion worldwide as of May 7, 2020. United States sources contributed $6 billion of the total funding. The number includes giving from companies, foundations, and individuals. The largest at the time being is $1 billion to Start Small, a company designed to serve communities in need, by Twitter co-founder Jack Dorsey.
Some philanthropists and foundation leaders are encouraging increasing the payout for foundations from 5 percent to 10 percent of assets. Several large foundations are offering grants with more flexibility so that nonprofits and organizations can adapt to the changing needs of their constituents. Grants or gifts may be focused on relief areas such as assistance for those engaged in frontline medical and first-responder efforts to fight the virus, technology to help children and educators who are now working and learning remotely, food banks/food pantries, and supporting local and national healthcare infrastructure including cloud medical services and supporting clinics that serve vulnerable populations. There is something to be said about the power of direct cash giving. As the pandemic continues, nonprofits of all sizes are adopting cash programs to help raise funds for those with immediate needs. The Together Las Cruces fund in Southern New Mexico has a small focus of workers in Doña Ana County who have been laid off or experienced a significant loss of income can qualify for grants of up to $500. Larger programs exist too. Project 100 attracted the attention of major philanthropists such as Google Chief Executive Sundar Pichai, with the goal of raising $100 Million to give $1,000 cash to 100K U.S. families who use Fresh EBT. Similarly, Stand Together raised nearly $40 million and has given $500 each to nearly 80,000 individuals and families. Cash programs are driven by the idea that the people struggling have the clearest idea of what they need and often have the best solutions to the problems they are facing. The majority of nonprofits need unrestricted funding so they can fulfill the greatest and most pressing needs of their constituents. In this critical moment, communities need nonprofits who are creating change in ways that are both innovative and equitable. But the nonprofit sector also needs support. Giving unrestricted gifts and easing grant restrictions is the best way to ensure that the organization can be adaptable and provide much-needed services while also continuing their day-to-day operations.