The BDO Institute for Nonprofit ExcellenceSM announces today the
release of the first annual BDO Nonprofit Standards, a benchmarking
survey designed in partnership with The NonProfit Times.
The survey is intended to provide tax-exempt organizations with
a barometer to measure performance on key areas including strategic
planning, operations, scope and impact, human resources and
governance.
With breakouts by revenue and sector, nonprofits of all sizes
and missions can use the report’s data to find out how they compare
to their peers. Organizations can also leverage the findings to
help them make important strategic decisions to improve long-term
sustainability and success.
Lead findings include:
Staff retention, funding squeezes and board leadership rank
among top challenges.
Staff retention and recruitment ranks as the number one
challenge for nonprofits, cited by 72 percent of the respondents.
Cutbacks in funding and drops in revenue follows, identified by 48
percent of nonprofits. Attracting quality leadership and board
members (cited by 34 percent), rising costs (33 percent),
compliance with government regulations (28 percent) and excess
demand for services (25 percent) were also among the other top
challenges.
“People are at the heart of the nonprofit sector—and the data
reflects that organizations deeply value their staff, leadership
and board members. To maximize tightening budgets, it’s
increasingly important to cultivate effective leadership at the
board level and competent, effective management to conduct
operations,” said Laurie De Armond, partner and national co-leader
of BDO’s Nonprofit & Education practice.
Organizations may be overlooking liquidity issues.
While only 11 percent of nonprofits name liquidity as a concern,
most (53 percent) maintain less than six months of liquid
restricted net assets. The liquidity deficit is stark among health
and human services organizations—nearly one-quarter (23 percent) do
not maintain any operating reserves, compared to just six percent
of public charities.
“Liquidity issues can often fly under the radar for
organizations. Nonprofits are facing an unprecedented level of
uncertainty this year, as government funding—at both the federal
and state level—hangs in the balance. To protect themselves from
any negative impact of continued funding shortfalls, it is
essential that nonprofits take proactive measures to focus on
sustainability and build up their reserves,” said Adam Cole,
partner and national co-leader of BDO’s Nonprofit & Education
practice.
Redefining scope for future operations.
Nonprofits look to many different strategies to ensure
sustainability and further their missions. While the majority of
organizations (70 percent) did not increase their scope last year,
survey results suggest that hopes for increased activity remain.
Over the next two years, 56 percent of nonprofits plan to introduce
new programs. Of those organizations, 27 percent will eliminate
some current programs and introduce new ones.
BDO Nonprofit Standards, a Benchmarking Survey
These findings are from BDO’s first annual Nonprofit
Standards, a national benchmarking survey of 105 nonprofit
organizations, across a variety of sectors with revenue above $10
million as of their last fiscal year. The survey was conducted in
partnership with The NonProfit Times and fielded by Campbell
Rinker, a market research firm.
To find out how your nonprofit compares to industry peers, view
the full report here.
You can also view the following individual sections:
- Strategic Planning
- Operations
- Scope & Impact
- Human Resources
- Governance
BDO INSTITUTE FOR NONPROFIT EXCELLENCESM
BDO’s Institute for Nonprofit Excellence (the Institute) has the
skills and knowledge to provide high quality services and address
the needs of the nation’s nonprofit sector. Based in our Greater
Washington, DC Metro office, the Institute supports and
collaborates with BDO offices around the country and the BDO
International network to develop innovative and practical
accounting and operational strategies for the tax-exempt
organizations they serve. The Institute also serves as a resource,
studying and disseminating information pertaining to nonprofit
accounting and business management. The Institute offers both live
and local seminars, as well as webinars, on a variety of topics of
interest to nonprofit organizations and educational
institutions.
About BDO USA
BDO is the brand name for BDO USA, LLP, a U.S. professional
services firm providing assurance, tax, advisory and consulting
services to a wide range of publicly traded and privately held
companies. For more than 100 years, BDO has provided quality
service through the active involvement of experienced and committed
professionals. The firm serves clients through more than 60 offices
and over 500 independent alliance firm locations nationwide. As an
independent Member Firm of BDO International Limited, BDO serves
multi-national clients through a global network of 1,408 offices in
154 countries.
BDO USA, LLP, a Delaware limited liability partnership, is the
U.S. member of BDO International Limited, a UK company limited by
guarantee, and forms part of the international BDO network of
independent member firms. BDO is the brand name for the BDO network
and for each of the BDO Member Firms. For more information please
visit: www.bdo.com.
About THE NONPROFIT TIMES
The NonProfit Times, the flagship publication of NPT Publishing
Group in Morris Plains, N.J., is the leading business publication
for nonprofit management. Geared to the executive suite, The
NonProfit Times delivers news, business information and original
research on the daily operations of tax-exempt organizations.
Nonprofit managers have come to rely on The NonProfit Times,
with more than 300,000 unique subscribers to the various
offerings.
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version on businesswire.com: http://www.businesswire.com/news/home/20170612005687/en/
Bliss Integrated CommunicationKerry Mullen,
212-840-1661kerry@blissintegrated.com