Nonprofits facing rising demand for services, study says
By Sherri Begin Welch ~ October, 2008

State budget cuts, foreclosures and rising costs for fuel and food are increasing demand for nonprofit services, according to a new study.

The study, “Michigan’s Nonprofits Struggle with Economic Downturn,” surveyed 300 Michigan nonprofits this month. It was conducted by the Lansing-based Michigan Nonprofit Association and the Johnson Center at Grand Valley State University in Grand Rapids.

Of those nonprofits surveyed, 71 percent said they have seen increased demand for their core services over the past 12 months, and an even greater number — 80 percent — said they expect demand to continue to rise in 2009.

About a third of the nonprofits surveyed said they have been unable to meet rising demand, with nonprofits of $100,000 or less feeling the largest effects of rising fuel prices.

At the same time, half or 150 of those nonprofits said their revenue and in-kind or product donations have decreased during the past year, and about 54 percent said they expect it to decrease in the coming year.

According to the report, West Michigan was the only region where less than half of surveyed nonprofits were forecasting decreases in the coming year.