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Utah lost more than 2,100 nonprofits, charities since 2009

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By Joey Ferguson, Deseret News

Published: Thursday, Sept. 20 2012 3:56 p.m. MDT

SALT LAKE CITY, UTAH - Head start Teacher, Kaylana Lloyd, reads to 4-year-old Heidi Sanders (center) while 4-year-old Annaleah Rodriquez plays with binoculars in the foreground at Salt Lake Community Action Program.

MICHAEL BRANDY, DESERET MORNING NEWS

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Summary

Nonprofits in Utah dropped by 38 percent to 3,568 since 2009 as many are struggling to find finances.

More Coverage
  • Bolstering benevolence: First steps toward turning around a nonprofit in trouble

Nonprofits in Utah dropped by 38 percent to 3,568 since 2009 as many are struggling to find finances for already struggling budgets, according to a study by the Community Foundation of Utah.

Four out of every five nonprofit organizations in Utah work with budgets of less than $100,000 while employing more than 5 percent of the state’s work force.

Nonprofits in Utah

“At the beginning of the recession, corporate giving in Utah tanked,” Fraser Nelson, executive director of the Community Foundation of Utah, said in a phone interview. “There is no doubt that the worst nonprofits hit were in rural areas. Our data has showed this consistently.”

Nonprofits in rural areas struggled the most because most of their contributions came from businesses like car dealerships and local grocery stores, which cut back after the recession, Nelson said.

Utah Percent of Charity Filers

National Percent of Charity Filers

Beginning in 2012, 31 percent of organizations had less than 3 months of operating capital, according to the study. Forty-six percent reported they have not seen any signs of recovery.

Despite the declines, there is hope for nonprofits in Utah.

“One of the things nonprofits can do is understand how to generate revenue,” Nelson said.

Over the past three years, nonprofits, like the Head Start Program and the Road Home, have learned how to generate revenue by innovating the products and services they offer, Nelson said.

EMAIL: jferguson@desnews.com

Twitter: @joeyferguson

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  • Bolstering benevolence: First steps toward turning around a nonprofit in trouble

Featured Comments

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Jefferson
Kalispell, MT

Four out of five operate on a budget of less than $100,000. So either those operating the "non-profit" are working for free or very little compensation, or very little of their budget is going to direct aid. Please don't misunderstand, More..

  • 7:27 a.m. Sept. 21, 2012
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About the Author
Joey Ferguson

Joey Ferguson

Joey Ferguson is a business reporter for the Deseret News who focuses on public finance. He joined Deseret News after graduating from Brigham Young University-Idaho with a bachelor's degree in journalism in May 2011. He more ..

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