Alliance of Arizona Nonprofits Report Impact of COVID-19 in Real Numbers
By Lisa Padilla -
Thursday May 07, 2020
Nonprofits across Arizona are reeling from the impact of the COVID-19 pandemic in real numbers, according to a survey by the Alliance of Arizona Nonprofits.
This week, the Alliance received 306 responses to its updated Covid-19 Nonprofit Impact Pulse Survey and is reporting 98% of responding organizations have been significantly impacted by the pandemic. Of those impacted, 86% reported decreased revenue totaling and 76% indicate a disruption of services to clients and communities.
Total revenue loss reported thus far in Arizona is nearly $40 million. The anticipated loss through the end of the organizationsâ€™ respective fiscal years is nearly $433 million. These findings are current as of May 4.
One-quarter of respondents reported laying off or furloughing 1,962 employees as a result of the pandemic and nearly 60% (155 nonprofit organizations) applied for Paycheck Protection Program (PPP) loans totaling more than $37.7 million in relief funding. Of those applying for loans, 48% were approved, 45% are waiting for approval and 7% were denied funding at the time of the survey.
â€œThis may only represent the tip of the iceberg,â€ said Alliance of Arizona Nonprofits CEO Kristen Merrifield. â€œHaving access to PPP and Economic Injury Disaster Loans will certainly help, and weâ€™ve seen the incredible generosity of the community through the recent Arizona Gives Day event, which raised more than $6 million. The collaboration among grantmaking organizations have made more than $36 million available to nonprofits, but, unfortunately, weâ€™re a long way from assessing the full impact.â€
Merrifield said that adding to the challenge posed by the pandemic is that nonprofit organizations self-insuring for unemployment insurance are required to reimburse the state for one-half of the value of the temporary benefits provided through unemployment insurance claims. Arizona Autism United estimates that figure could be more than $300,000.
â€œWe have requested that Governor Doug Ducey forgive the full amount of the unemployment insurance claims by applying Federal funds to cover those costs,â€ Merrifield said.
One additional impact of the pandemic is the loss of volunteers. Nonprofits responding to the survey reported that number at 31,636. According to Independent Sector, a national organization that advocates for public policies impacting the charitable sector, volunteer hours are valued at $25.45 an hour. Figuring at least one hour of time per volunteer, the minimum value of the loss of donated hours is more than $800,000
The Alliance of Arizona Nonprofits is a statewide trusted resource and advocate for the nonprofit community. The Allianceâ€™s mission is to unite, strengthen and advance Arizonaâ€™s nonprofit sector and is comprised of more than 1,000 members â€“ both nonprofits and those in the community who support them â€“ across the state. Since 2004, the organization has been dedicated to furthering the common interests of Arizonaâ€™s nonprofit community and envisions an Arizona where all nonprofits are valued, empowered and thriving, with support from grassroots efforts like Arizona Gives Day. For more information, visit http://www.arizonanonprofits.org, or email [email protected].