COVID-19 Impacts US Nonprofit Organizations

Olivia Van De Ven

ENC 1102: English Composition

Dr. Steffen Guenzel

April 19, 2021

Introduction
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There are 1.6 million nonprofit organizations registered in the United States and

nonprofit workers make up “Ten percent of the American workforce or 11.4 million jobs.”1

Traditionally, when people hear ‘nonprofits’ they either associate it with food banks or homeless

shelters; however, nonprofit organizations range from Arts Relief to Feeding America. The

impact of nonprofit organizations in the United States extends far beyond simply The Red Cross

and Habitat for Humanity. Nonprofit organizations influence the lives of millions of Americans

every year. The influence goes far beyond those on the receiving end. The impact of nonprofit

organizations ripples to those who work for these nonprofits or those who work as volunteers .

For example, “63 million Americans... volunteer their time, talents, and energy to making a

difference,”2 this amount of time equates to 193 million dollars in time worked. As we can see,

nonprofit organizations are essential to the United States. As everything else has been affected

due to COVID-19, so have nonprofit organizations in the United States.

My research project, “COVID-19 Impacts US Nonprofits,” will break down and analyze

the impact of COVID-19 on nonprofit organizations in the United States. Over the past year,

nonprofit organizations have had to adapt to the times, as has the whole world, but this past year

will influence the methods in which nonprofits will operate in the future. As someone who is

majoring in Global & International Studies in hopes of being a Humanitarian working at a

nonprofit organization, these changes will influence my job. With the changes made by nonprofit

organizations in the past year, researching how nonprofits were affected in the past can help to

prepare for the field in the future. The focus of the exploration will be divided by the three most

pressing factors of nonprofit organizations that are experiencing the greatest stress. These three

perspectives include adapting to the digital world, staying effective during a global pandemic,
1 Independent Sector. 2021. “The Charitable Sector.” Independent Sector. https://independentsector.org/about/the-
charitable-sector/.
2 Independent Sector
 2

and battling financial crises. COVID-19 influenced nonprofits through many aspects financially,

influencing the organizations’ methods of awareness, and lastly the ability in which the

nonprofits can aid those in need. By breaking down these categories, we can truly understand the

impact COVID-19 has had on the many aspects of not only nonprofit organizations, but the

entire world. After beginning my research process, I had the opportunity to meet the current

Annual Giving Manager, Emma Parker, for the nonprofit organization, the Orlando Philharmonic

Orchestra. The Orlando Philharmonic Orchestra is a nonprofit organization here in Orlando that

provided me the opportunity to research the topic first hand.

Adapting to a Digital World

The COVID-19 global pandemic has swept the world this past year with an abundance of

hurdles that were very much unanticipated. One of which was the use of technology to remain

safe at home, as a society everything went online. Work and school were orchestrated via Zoom,

GoogleHangout, or other different streaming sources. Likewise, many people spent more time

than ever on technology swiping on social media platforms. As a result, it is safe to say that

people have spent more time on technology now more than ever. Many nonprofit organizations

had to learn very quickly how to adapt to the changing world and its extensive use of technology.

However, before COVID-19 many nonprofit organizations were not as well versed in

technology; for example, “An estimated 57% of businesses had no formal work-from-home

policies at the onset of lockdown restrictions.”3 Learning how to adapt planning events,

spreading awareness, and captivating an audience through social media was a difficult

adjustment for many nonprofit organizations that did not already have a foundation in

technology. Especially regarding how social media has begun to play a major role in marketing
3 Browning, Jack. “How Has COVID Changed Nonprofits Digitally and What's Next?” Impact Networking. Impact
Networking, September 29, 2020. https://www.impactmybiz.com/blog/digital-nonprofits-after-covid/.
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for nonprofits. For example, The Orlando Philharmonic Orchestra began sending out monthly

newsletters for their audience to increase engagement. This newsletter was titled, “Monthly

Minute” and detailed the upcoming virtual and in-person socially distanced performances4. This

formatting of digital marketing was a new development for The Philharmonic Orchestra and was

executed in an attempt to encourage engagement in the Orchestra and their shows. Not only did

they release the monthly newsletter, but they started replacing the canceled in-person concerts

available, as scheduled, with online concerts5. This format change was a difficult adjustment;

however, it provided a stability that many other organizations wished for in this time of need. An

article written about an organization called “Water.org” detailing the marketing team’s strategy

to overcome the struggles of COVID-19 with a detailed digital marketing plan. In this article,

Moree Lambeth details the plan through the three big actions being put into place. For example,

Water.org wanted to create a connection between their organization and COVID-19 by,

“provid[ing] followers with video content on how the work of Water.org is directly tied to

preventing the spread of COVID-19.”6 By creating this connection between Water.org to

COVID-19, not only are they able to stay relevant, but they can also contribute to stopping the

spread of COVID-19. While the Orlando Philharmonic Orchestra and the Water.org had the

privilege of sufficient technological resources, not all nonprofit organizations did. For instance,

“9 out of 10 nonprofit organizations don’t believe that their digital technology implementation is

of a high enough standard.”7 With the inability to ‘keep up’ to technological advances, many

4 Parker, Emma. Interview by Olivia Van De Ven. Phone Call Interview. March 26, 2021.
5 Parker
6 Lambeth, Moree. 2020. “How Water.org Adapted Their Social Media Content Strategy in Response to COVID-
19.” Nonprofit Tech for Good. https://www.nptechforgood.com/2020/07/13/how-water-org-adapted-their-social-
media-content-strategy-in-response-to-covid-19/.

7 Browning, Jack. “How Has COVID Changed Nonprofits Digitally and What's Next?” Impact Networking. Impact
Networking, September 29, 2020. https://www.impactmybiz.com/blog/digital-nonprofits-after-covid/.
 4

nonprofit organizations struggled to market themselves in the digital media world and

consequently struggled with staying effective.

Staying Effective Amidst the Global Pandemic

Nonprofit organizations across the United States range in their individual missions,

whether they are committed to providing food or supporting the arts. Despite the range of

mission statements, each organization provides a service for its designated demographic. During

the COVID-19 Stay at Home order, the world was scrambling to continue life as we knew it at

home. However, many events and work activities for nonprofit organizations were either

canceled or greatly postponed. For example, The Orlando Philharmonic Orchestra was forced to

“postpone and cancel services”8 including their concerts. Groups like the Calpulli Mexican

Dance Company who “perform nationally teaching Mexican music and dance in schools,” had

to “cancel 62 engagements”9 as a result of COVID-19. Another group, The Inner City Youth

Orchestra of Los Angeles is an organization dedicated to “ train[ing] young people in classical

music and whose members are nearly all from Black or Latino communities.”10 However,

COVID-19 has “suspended all operations since March [2020].”11 Each of these nonprofit

organizations and many more around the United States have struggled immensely to continue

pursuing their mission statements due to the inability to continue working, mostly due to losses

financially or their inability to transfer to online. An article written about child care providers in

Marin County California demonstrates the impact of COVID-19, for example, their capacity of

children allowed in the center. The Child care center could only provide service for “70 kids, half

8 Parker, Emma. Interview by Olivia Van De Ven. Phone Call Interview. March 26, 2021
9 Alexander, Lucy. 2020. “Nonprofits Are Struggling Because of Covid. Here Are 17 That Could Use Your Help.”
The Macallan. https://robbreport.com/lifestyle/news/17-essential-non-profits-struggling-during-pandemic-
1234586907/.
10 Alexander
11 Alexander
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the number it was caring for before the ‘shelter in place’ order went into effect.”12 Not only is the

child care center struggling to create revenue to keep the building open, but they are unable to

provide care for children. Research done by The Independent Sector on Large and Mid-Sized

Nonprofits found that, “71% [of nonprofit organizations] have responded with a reduction in

services or available operations.” 13 Not only are nonprofit organizations struggling to maintain

productivity, but due to the coronavirus, the demand for essential items has spiked intensely. As

the Nation’s largest domestic hunger-relief organization, Feeding America has experienced a “60

percent increase in demand at its national network of 60,000 food pantries.” 14 On top of that, the

increase in demand comes from people who have never visited a food pantry before, according to

this survey it occupies 40 percent15. Each of these organizations is demonstrating an inability to

continue working effectively as a result of growing financial distress. During this past year, it has

become extremely rare for nonprofit organizations to thrive as a result of COVID-19 due to

financial instability. However, there are nonprofit organizations like the Orlando Philharmonic

Orchestra that could keep performing via Zoom or in-person with proper social distancing

requirements. In an interview with Director Emma Parker, I asked, how long was the OPO

officially closed before you could have musicians back and playing? She responded, “Still in

March like March or early April, but kind of soon after… I don’t think we ever shut down

completely.” The biggest divide between organizations previously mentioned and the Orlando

Philharmonic Orchestra is their funding. The Orlando Philharmonic Orchestra not only had very

generous donors but also received the PPP, Payment Protection Program. This loan was provided

as a result of COVID-19 to help keep their workforce employed. While they were very fortunate
12 Halstead, Richard. 2020. “Coronavirus Rules Threaten Viability of Marin Child Care Sites.” Marin Independent
Journal. https://www.marinij.com/2020/06/20/coronavirus-rules-threaten-viability-of-marin-child-care-sites/.
13 Independent Sector. 2020. “The Impact of COVID-19 on Large and Mid-Sized Nonprofits.” Independent Sector.
https://independentsector.org/resource/covid19-survey/.
14 Alexander
15 Alexander
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to receive this support, not all organizations were qualified. Financial Stability throughout

COVID-19 was the greatest factor influencing nonprofit organizations.

Battling Financial Crisis

Nonprofit organizations in the United States were most greatly impacted financially.

Many aspects in which that were impacted included the donations, individual or otherwise, loss

of funding, revenue, or cutting jobs. On top of these losses of costs, COVID-19 came with a new

wave of costs that greatly strained nonprofit organizations financially. Due to the nature of the

pandemic, health has become at the forefront of every aspect of our lives. An example of the new

wave of costs for nonprofit organizations includes adapting to remote working and distance

learning, providing safety for their workers, and expenses to pay for new technology. For

example, a survey was done on New York City Nonprofit organizations found that “CAMBA

[the nonprofit] estimates new IT spending to ‘reach well over $200,000’ according to Opulsti.l”16

It was stated that these costs were to purchase equipment, including laptops, scanners, printers,

iPhones, Zoom accounts, work desks, and mobile hotspots.17 For nonprofits that have in-person

events or workers, the new wave of cleaning costs to keep up to date with the Department of

Health, providing proper PPE, and ensuring that work can continue safely has accumulated

thousands of dollars. For instance, “CAMBA has ‘already incurred about $150,000 in cleaning

services at our sites which are required to stay open.’” 18 In addition to the new wave of costs,

many nonprofit organizations have dealt with delay or canceled payments from grants or state

funding. For example, a small Brooklyn-based organization that provides education and job

16 Amandolare, Sarah, Jonathan Bowles, Laird Gallagher, and Erin Garrett. Report. Center for an Urban Future,
2020. Accessed April 6, 2021. doi:10.2307/resrep25435.
17 Amandolare
18 Amandolare
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training for refugees have had to deal with, “...postpon[ed] grant decisions or reallocating

funding to emergency relief”19 While each of these new costs may seem minuscule, nonprofit

organizations of all sizes are faced with all of these costs whilst they are dealing with a loss in

donations, funding, revenue, and donations.

With the whole world shutting down in the past year, nonprofit organizations were not

the exception. The cancellation of fundraisers, concerts, and benefits has created a halting loss of

revenue for the organizations. This drastic halt in events has put several nonprofits in jeopardy of

having to close. After a survey was done on New York City nonprofit organizations it was found

that “The Catholic Charities of the Archdiocese of New York expects $3 million in revenue

losses because of canceled and postponed spring fundraising events alone” . The Catholic

Charities of Archdiocese is not the organization with a loss of revenue, according to a survey

done by the Independent Sector, “83% of organizations experienced a reduction in revenue.”20

Like a domino effect, when the events/ fundraisers are canceled, the amount of revenue is

lessened, and donations (individual and grants) follow behind.

Discussion / Analysis

COVID-19 has influenced every aspect of our lives, including how we attend schools to

the way we order food. Nonprofit organizations are not excluded from this impact, in fact, they

were greatly impacted. My research regarding the impact of COVID-19 on nonprofit

organizations is broken down into three categories; including, awareness, effectiveness and

financial stress. Awareness refers to nonprofit organizations ability to continue to spread their

mission, this includes nonprofits ability to adapt to the digital world. Effectiveness refers to the

19 Amandolare
20 Independent Sector
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ways in which nonprofit organizations have been able to conduct their mission/ vision statements

despite the pandemic. This includes the ability to still play music or distribute essential items,

like food, to those in need. Lastly, the most influential factor was nonprofit organizations ability

to battle the financial crisis amidst COVID-19. Many organizations struggled due to canceled

events or delayed/canceled funding, and as result many nonprofit organizations had to close their

doors.

As a result of COVID-19, United States nonprofit organizations adapted as well as they

could, under the circumstances. For such a high percentage of organizations that felt as though

their technology was not adequate enough, many organizations found solutions. For example, the

Orlando Philharmonic Orchestra adapted their live performances to video based online concerts.

Not only did they conquer the new digital world, but they still managed to continue playing

music and upheld their mission statement. Adapting to the new digital era regarding digital

marketing aided the Water.org to hold the attention of their audience and provide security for

their organization. However, there were many organizations that did not have the luxury of

adapting to online formats and had to suspend all activity since last March. Not all organizations

had to close; however, organizations like the Child Care Center of Marin County California had

to reduce the capacity of children. Not only that, but there was a large influx of people reaching

out to these resources for the first time. Many nonprofit organizations could barely aid the people

they were helping before, let alone the new group of people coming in. The separation between

the organizations that thrived and those that struggled were their financial situation.

organizations that received help or had enough money saved were able to to adapt to the new

digital formatting and in turn stayed effective.

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References

Amandolare, Sarah, Jonathan Bowles, Laird Gallagher, and Erin Garrett. Report. Center for an

Urban Future, (2020). Accessed April 6, 2021. doi:10.2307/resrep25435.

Alexander, Lucy. (2020). “Nonprofits Are Struggling Because of Covid. Here Are 17 That Could

Use Your Help.” The Macallan. https://robbreport.com/lifestyle/news/17-essential-non-

profits-struggling-during-pandemic-1234586907/.

Barnhart, Erica M., Emily A. Finchum-Mason, Mary Kay Gugerty, and Kelly Husted. (2020).

“Local Impacts of a Global Crisis: How Washington State Nonprofits are Responding to

COVID-19.” Evans School of Public Policy & Governance. https://evans.uw.edu/local-

impacts-of-a-global-crisis-how-washington-state-nonprofits-are-responding-to-covid-19/.

Browning, Jack. “How Has COVID Changed Nonprofits Digitally and What's Next?” Impact

Networking. Impact Networking, (September 29, 2020).

https://www.impactmybiz.com/blog/digital-nonprofits-after-covid/.

Halstead, Richard. (2020). “Coronavirus Rules Threaten Viability of Marin Child Care Sites.”

Marin Independent Journal. https://www.marinij.com/2020/06/20/coronavirus-rules-

threaten-viability-of-marin-child-care-sites/.

“The Impact of COVID-19 on Large and Mid-Sized Nonprofits.” Independent Sector.

https://independentsector.org/resource/covid19-survey/.
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“The Charitable Sector.” Independent Sector. https://independentsector.org/about/the-charitable-

sector/.

Lambeth, Moree. (2020). “How Water.org Adapted Their Social Media Content Strategy in

Response to COVID-19.” Nonprofit Tech for Good.

https://www.nptechforgood.com/2020/07/13/how-water-org-adapted-their-social-media-

content-strategy-in-response-to-covid-19/.

Merrifield, Kristen. (2020). “Arizona's COVID-19 Nonprofit Pulse Poll.” Alliance of Arizona

Nonprofits.

https://cdn.ymaws.com/arizonanonprofits.org/resource/resmgr/files/covid19/updated_imp

act_poll__06.11.2.pdf.

Parker, Emma. Interview by Olivia Van De Ven. Phone Call Interview. March 26, 2021.