Pandemic puts 1 in 3 nonprofits in financial jeopardy

National

Staff Sgt. Mike Schuster loads two produce boxes into a car at a food bank distribution by the Greater Cleveland Food Bank, Thursday, Jan. 7, 2021, in Cleveland. (AP Photo/Tony Dejak)

NEW YORK (AP) — More than one-third of U.S. nonprofits are in jeopardy of closing within two years because of the financial harm inflicted by the viral pandemic, according to a study being released Wednesday by the philanthropy research group Candid and the Center for Disaster Philanthropy.

The study’s findings underscore the perils for nonprofits and charities whose financial needs have escalated over the past year, well in excess of the donations that most have received from individuals and foundations.

Among the most vulnerable nonprofits, the study said, are those involved in arts and entertainment, which depend on ticket sales for most of their revenue, cannot significantly their reduce expenses and don’t typically hold much cash.

The researchers analyzed how roughly 300,000 nonprofits would fare under 20 scenarios of varying severity.

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