Despite reports that the economy may finally be recovering, Bay Area nonprofit organizations – and the clients they serve – are still reeling from the recession, according to United Way’s eighth annual Bay Area Nonprofit Pulse Survey. (Read the press release)

The financial well-being of the Bay Area nonprofit sector continued to erode in 2009. Fifty-one percent of survey respondents indicated that revenues declined in 2009, with 39% stating their organizations’ revenue dropped by more than 10%.

When asked if they are observing signs of recovery among their clients, only 3% of respondents indicated their clients are faring better now than they were a year ago, while 45% stated that their clients are faring worse.

Demand for services continues to surge, with 62% of nonprofits reporting an increase in service demand last year. Of that group, 40% indicated they were unable to meet increased service demand.

“We know that the families and individuals who have been hit hardest by the recession will need months, even years to fully recover and get back on their feet,” said Anne Wilson, CEO of United Way of the Bay Area. “To ensure local nonprofits can weather this storm, and serve mounting needs, it is so important for everyone who can to step up now – to give, advocate and volunteer – in support of our community.”

This results while upsetting are not surprising, and were foreshadowed by our recently released report “Struggling to Make Ends Meet,” which highlights the challenges faced by the Bay Area’s working poor. It reveals that local families require three full-time, minimum wage jobs to pay for basic necessities, when measured by the California Self-Sufficiency Standard. Read the full report.

Learn more how the Great Recession may be affecting future generations.