Utah Loses 38 Percent of Nonprofits, Many are Rural

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September 20, 2012; Source: Deseret News

Despite the fact that, according to the Chronicle of Philanthropy, Utah has the highest state per capita giving average with 10.6 percent of their discretionary income going to charity (based on 2008 data), a study performed by the Community Foundation of Utah reports that the state has lost 38 percent of its nonprofits since 2009 and that many of these were rural.

Four out of five nonprofits in Utah have annual budgets of $100,000 or less. This is pertinent because in 2010 – 2011 there was an IRS purge of organizations that were not reporting. There were about 275,000 organizations that lost their status nationwide – approximately 18 percent of the nation’s nonprofits. This hit small organizations hard because those with budgets under $25,000 did not have to report before 2006 and many never started after that requirement went into effect. But Fraser Nelson, executive director of the foundation, implies that corporate contributions in the state may also be playing a large part in the disproportionate drop.

At the beginning of the recession, “corporate giving in Utah tanked,” said Nelson. “There is no doubt that the worst nonprofits hit were in rural areas. Our data has showed this consistently.” Nelson said that these organizations were most vulnerable because most of their support came from businesses like car dealerships and local grocery stores, which cut back after the recession.

Even among the nonprofits survivors, according to this report, things are less than rosy. Less than 31 percent have three months operating capital on hand and an unsurprising 46 percent say they have felt no signs of economic recovery to date. –Ruth McCambridge

  • bhardwad

    Email: chinyard1@yahoo.co.in, Website: http://www.chinyard-india.org

    Respected Sir,
    We are writing this letter on behalf of CHINYARD, we would like to enlighten you about our organization. CHINYARD is operating in India, Karnataka State of North region over the last 22 years. CHINYARD is one of the development initiatives rendering service to poorest of the poor. CHINYARD’s prime vision is to bring destitute people into main stream society. Because underprivileged masses are deprived from economic, social and institutional opportunities. CHINYARD is registered Charitable Trust. For overseas assistance CHINYARD is registered under Ministry of Home Affairs for Foreign Contribution and Regulation Act.

    CHINYARD’s operation is recognized in drought prone areas; most of them are marginal and poor farmers depending only on agricultural, due to scarcity of rains land remains fallow. Therefore peasants are not getting adequate employment opportunities here. Hence farmers are migrating towards metropolitan cities for search of livelihood options. Consequences of parent migration children are deprived from education. CHINYARD organization has been implementing several social development programmes for upliftment of destitute people. These programmes are as follows.
    • Promotion of Livelihood Activities:
    • Rural Small Micro Entrepreneurship Development Programme:
    • Women Empowerment,
    • Biodiversity Conservation and Natural Resource Management Programme,
    • Capacity Building Training for Self Help Group Members,
    • Eradication of Violence against Woman,
    • Tribal Handicraft,
    • Computer Literacy Programme,
    • Small and Micro Credit Programme,
    • Drinking Water and Sanitation Project,

    Now we are unable to carry out the above activities, due to lack of financial sources. In this connection we are requesting your Financial Assistance for further development work. Your contribution can bring brightness among the under privileged masses. Your kind financial Assistance will get tax exemption under 12(A) and 80G Income Tax Act-1961.

    Our next future plan is to implement the following programmes for this we need to join hands with you
    • Orphans centre,
    • Rehabilitation Centre for Senior Citizens,
    • Health care centers,
    • Education centers,
    • Establishment of Human resource training center,
    • Training cum production centre for widows, deserted women, distressed women, Tribal women, poor of the poorest women, etc.,
    • Small and Micro Enterprise Programmes,
    • Nutritious programme for poor women and childrens,

    Thus we are requesting you to consider this letter as our appeal to seek financial assistance from your side.

    Further more information, visit our organization website: http://www.chinyard-india.org/

    Looking forward to your positive response.

    Thanking You

    Yours Faithfully Managing Trustee
    Chinyard NGO