Brooklyn nonprofits feel financial pinch as demand for services escalates
A report published this week by the Center for an Urban Future reveals that a growing number of nonprofit organizations, including many in Brooklyn and Queens, are experiencing financial losses of more than $1 million because of the COVID-19 pandemic.
The study shows that the nonprofits’ financial losses stem from two factors resulting from the pandemic: 1) they are dealing with a sea of new operational costs—from setting up new IT systems to purchasing protective equipment and hiring temporary workers to replace full-time staffers that are out sick; and 2) they are confronting sometimes staggering losses in revenue due to canceled fundraisers.
Several of the nonprofits interviewed for the report said that their financial losses from the first several weeks of this crisis have already exceeded $1 million, with one predicting $3 million in revenue losses.
For example, Flatbush-based CAMBA expects more than $1 million in unanticipated costs, including $150,000 for cleaning services and $200,000 in IT costs.