The financial well-being of the Bay Area nonprofit sector – and the clients it serves – continued to erode in 2010, according to United Way’s ninth annual Bay Area Nonprofit Pulse Survey. The survey of 232 Bay Area nonprofit organizations reveals that the recession’s lingering effects forced agencies to cut staff and services in order to survive.

When asked if they are observing signs of recovery among their clients, 53% stated that their clients are faring worse, compared to 45% in 2010.  Demand for services continues to surge, with 62% of nonprofits reporting an increase in demand last year. Of that group, 45% indicated they had to turn clients away, unable to meet the increased demand.

“The economic downturn has had a drastic effect on our organization,” said Tempi Priestly, CEO of Renaissance Parenting Success, a San Francisco-based nonprofit that works with at-risk youth.  “We have had to lay off people instead of hiring much needed staff to support our programs.  Our goal is to always provide the highest quality service, therefore, our staff is working extra hours without pay. These same employees have already undergone severe pay cuts.” 

Fifty-four percent of survey respondents indicated that revenues declined in 2010, with 38% stating their organizations’ revenue dropped by more than 10%. Straining under year-after-year drops in revenue, 33% of nonprofits are concerned their organizations may cease operations this year.

“The recession has severely compromised our community’s safety net,” said Anne Wilson, CEO of United Way of the Bay Area. “The Bay Area residents who were hit hardest by the recession will need months, even years to fully recover and get back on their feet.  To ensure local nonprofits can serve these mounting needs, it is so important for everyone to step up and support the nonprofits that serve our community.”

Read the full press release.