AUBURN, Ala (WRBL)- Nonprofit organizations are struggling to survive financially as COVID-19 strengthens, further impacting the economy.
Many nonprofits are seeking support in the form of loans, increased lines of credit, and emergency grants.
Fundraising events have been postponed, and ticket sales are gone.
Donors, now pulling back on giving as they worry about the economy and so far foundations have suffered huge losses to endowments.
According to Kelly Krawczyk the Ph.D. Program Director in the Department of Political Science at Auburn University,
organizations went into the crisis without a large amount of reserve funds.
“The number of people who have donated money to a nonprofit in the past year has dropped to 73 percent that’s a 19 year low. It’s typically above 80 percent, the last time it was in the 70’s was in 2009 during the great recession. So first of all they are thinking about the fact that, what is the impact going to be if we are getting less charitable donations from individuals,” said Krawcyzk.
Krawczyk tells News 3 it is important to donate to nonprofits, because those organizations are very hands on within the community during trying times like this Global Pandemic.