Florida Nonprofits Survey 2024
Nonprofits are working in every county in Florida and impacting nearly every aspect of Floridians’ lives, from health care to housing, education to the environment, recreation to relief services, and much more.
The nonprofit sector is comprised of businesses of all sizes that have a nonprofit tax status – they are exempt from paying some taxes in return for the charitable purpose they provide. These nonprofit businesses are like for-profit businesses in many ways. They employ people, pay wages, bring in revenue, and make strategic decisions. They also provide services that help our economy indirectly, by educating children and adults, ensuring affordable housing, fighting food insecurity, and providing childcare. And they do this with a business model that requires them to provide charitable programs and services, often for free or at a below-market rate, while also fundraising the money to provide them.
Florida Nonprofit Alliance has been conducting regular surveys of the Florida nonprofit sector since April of 2020, in the early days of the COVID-19 pandemic. Our three reports in 2020 and the annual check-ins in 2021, 2022, and 2023 have provided an overview of the sector’s strengths and a real-time look at the challenges it is facing. The 2024 survey shows how nonprofits fared in five major categories – programs, human resources, finances, fundraising, and barriers to success – in the calendar year 2024. It also includes a section on hurricane effects, after three major storms hit Florida in 2024, and for the first time, pulls out differences among the eight regions in Florida.
On the whole, nonprofit organizations are an optimistic group. They believe in their missions and the impact they make in their communities. The sector is powered by more than 450,000 employees, and many more volunteers who generously give their time and knowledge to these organizations.
This optimistic spirit can also be an obstacle to sustainability, as nonprofits prioritize providing their programs and services to the detriment of their internal capacity and resources. In 2024, a quarter of Florida nonprofits experienced increased demand for their services, and 44% served more clients in 2024 than they did in 2023. One third are concerned about the increased need for their services, while fundraising remains very difficult and finding volunteers is a struggle. To keep providing the vital programs and services with increasing demand, nonprofits need support and resources of all kinds. This 2024 survey provides insight into what those resources are – and how all Floridians can be a part of the work of nonprofits and strengthen their communities by sharing their talents and treasures.
Key findings of the 2024 report include:
Difficulty in fundraising puts nonprofits at financial risk.
For the fifth year in a row, funding and fundraising are the biggest challenges for nonprofits in Florida – and this year hit a record high (46%). Funding (61%) and fundraising assistance (45%) remain the top nonprofit needs also for the fifth year in a row.
- 61% of nonprofits did not raise more money in 2024 than in 2023.
- 76% of nonprofits had no increase in unrestricted revenue in 2024.
- New sources of fundraising are not materializing – nonprofits overestimated new revenue by an average of 11%.
We also know that:
- One third of nonprofits in Florida have no reserve funds. Another 20% have less than three months’ operating expenses in reserves.
- More than one third of nonprofits are concerned about cash flow and loss of income or revenue.
Nonprofits with increasing demand, a precarious financial safety net, and struggles in fundraising are not primed for sustainability or growth.
Increased costs are burdening the nonprofit sector, just like every other sector of our economy.
Half of Florida’s nonprofits are experiencing increased costs for recurring expenses and are concerned about increased expenses. This adds to the precarious financial state described in the finding above. Although higher costs are not unique to the sector, nonprofits cannot simply raise prices or cut back on services, like the for-profit sector can often do.
Access to more volunteers is a critical necessity for nonprofits.
Volunteers not only provide more human resources with valuable skills, but they also help save labor costs and provide continuity in programs and services. However:
- One in five nonprofits still have fewer volunteers than in 2019, before the pandemic.
- Two in five nonprofits need more volunteers.
- Almost one third are looking for engagement and/or mobilization from their Boards. Organizations say their volunteers have age-related or health challenges that hinder their ability to volunteer consistently
Investing in nonprofit staff builds continuity.
Nonprofits rely on dedicated employees to create meaningful social impact. Currently, nonprofit staff need support in two key areas – succession planning and compensation.
- With 30% of Florida nonprofits expecting to have a different CEO by 2027, succession planning is crucial for smooth leadership transitions.
- Competitive salaries and benefits are also essential for attracting and retaining talent. However, some nonprofits report lacking the funding to adequately compensate their staff.
Nonprofits were on the frontlines of hurricane response and recovery.
The 2024 hurricane season affected almost every part of our state. One third of Florida’s nonprofits were affected by at least one hurricane. Of those affected, 45% were affected by two hurricanes. Despite being affected themselves, many nonprofits still were on the ground during storm response and recovery. 89% of nonprofits affected by hurricanes received no funding assistance for the disaster response and recovery work they did or the damage they experienced.
To read the full report, click here.
To download the infographic, click here.
Thank you to Wells Fargo for generously sponsoring this research.
If you have any questions about this research, please contact Leah McDermott at lmcdermott@flnonprofits.org.