In our 47-year history of service to Southwest Colorado, we have found that when people join together for the common good things change for the better.
Independently operated
501(c)3 non-profit organization
serving La Plata, San Juan, Montezuma, Dolores & Archuleta Counties
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United Way of Southwest Colorado and the Community Foundation Serving Southwest Colorado recently assessed the status and needs of our local nonprofits. We will share some of the key takeaways here gathered from 94 nonprofits across Archuleta, Dolores, La Plata, Montezuma, and San Juan Counties.
No surprise, local nonprofits expect major losses in funding over the next several months.
More than $8.8 million in losses is expected ($3.4 million from canceled fundraising events, $5.4 million from lost tuition, fees, theater and gallery ticket sales, etc.). Loss of revenue was cited by most as the greatest current challenge, and many are concerned about what will happen with government grants and contracts in 2021.
Nonprofits are taking action to manage the challenges.
More than half of the respondents had been successful in receiving Paycheck Protection Program funds (PPP): 17% had received Small Business Administration Disaster loans; 38% have implemented work reductions (layoffs, furloughs, etc.); 95% have worked with their Boards of Directors to analyze their financial positions and develop plans.
Nonprofits are responding to the Covid-19 crisis.
Only 17% of the respondents had closed their doors temporarily for the crisis. Eleven percent remained fully open, and the rest adapted to serve clients remotely and in new ways. More than $2.2 million in COVID-19-related grant dollars have been received in our area. These funds help nonprofits to respond to the increased need for food, shelter, protective equipment, mental health access, educational supports, and more. Those whose work is not directly related to COVID-19 needs are adapting their offerings and services to be remote or to maintain social distancing guidelines – both of which often come with additional expenses.
Other financial considerations for nonprofits
We asked the respondents to calculate the number of months they could operate simply with the cash they have on hand and in reserves – the average is six months. This may seem like a healthy amount (and is impressive given the three month operating reserve most nonprofits strive to have), but it is not a lot when you consider that we are almost four months into this crisis with little change on the operating and fundraising abilities of many of these organizations. Additionally, we learned that about 42% of the nonprofits are not covered by state unemployment insurance. So if unemployment claims arise, those must be paid out of the nonprofit’s own funds. Finally, almost a third of respondents (and 60% of human services organizations) operate with government reimbursement grants, which means they must have cash upfront to cover costs and then be reimbursed by state or federal funds.
Yes, there are a lot of challenges, but there are bright spots
We see nonprofits working together more than ever before to share information, resources, grant funds, physical space, and more to make things work in this challenging time. Donors have stepped up to support the increased needs of nonprofits and this is helping. The crisis has also pushed many programs to develop capabilities that they did not have before (e.g. how to better serve remote clients) and will ultimately help to improve their services. We thank you for your part in supporting the nonprofit sector through contributions, volunteerism, and advocacy.
Recurring Donations (monthly, quarterly, yearly) are now available online including the ability to
Dedicate Your Donation and send an e-Card with a personalized message.
"I have been lucky to work with and donate to the United Way for many years. I feel that watching the outcome of their work in our community has the results I can see in so many lives. Southwest Colorado is a giving community and to actually see these efforts translate into helping the lives of so many, makes it worth it."
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