Local nonprofits report revenue loss of $12.5m in 2020
March 8, 2021

KNOXVILLE – Throughout the COVID-19 pandemic and economic shutdown of 2020, United Way of Greater Knoxville (UWGK) and Alliance for Better Nonprofits (ABN) partnered to survey East Tennessee nonprofit organizations with the goal of gathering data on how the crisis has impacted local philanthropic work.

Almost one year since the onset of the pandemic, UWGK and ABN conducted a survey to find out how the COVID-19 crisis has impacted nonprofits’ operations, finances, and ability to carry out their missions. Get the report HERE.

217 agencies representing all East Tennessee counties reported an estimated loss of $12.5 million in 2020 as a result of the COVID-19 crisis. These nonprofits reported being able to mitigate some of the loss through both the SBA Paycheck Protection Program (PPP) loans as well as accessing grants from COVID relief funds and generous donor support. However, 62.5% of respondents reported having to cut programs and services, while at the same time 53.5% reported an increase in demand for these programs and services.

"When I first reviewed this report," said United Way of Greater Knoxville President and CEO Matt Ryerson, "I wondered why we had repeated a question; we asked agencies about their revenue losses in our very first survey, but here we are asking again as we enter the second year of this devastating pandemic. That means a second year of canceled fundraisers, of donor loss, of reduced programming. This extended economic downturn has impacted local nonprofits in a myriad of ways, the most devastating being staff layoffs or organizations closing altogether. We hope that conducting these surveys and publishing these reports sheds light on the challenges facing East Tennessee's nonprofit community and rallies support for the agencies serving our neighbors in need."

While many East Tennessee agencies are still turning to virtual fundraisers this spring, many are considering canceling or pushing their event to the fall. As a result, 75.9% of respondents anticipate a budget deficit due to the loss in revenue collectively totaling over $4 million.

According to survey respondents, other major challenges of the last year in addition to financial hardship and cancellation of programs were mental health, isolation, and burnout of both staff and clients.

“Our nonprofits have been heroic in their unfailing commitment to serving the most vulnerable among us throughout the pandemic, often placing their staff and volunteers at great risk in doing so,” said Alliance for Better Nonprofits President Dr. Jerry Askew. “Nonprofit organizations serving children and youth, seniors, the disabled, those experiencing homelessness, the immigrant and refugee community, as well as our arts and cultural organizations, those who care for the environment and for the well-being of animals, and so many more, change lives, enrich lives, and, yes, save lives every day – and they deserve our respect and support.”

United Way of Greater Knoxville and the Alliance for Better Nonprofits have conducted numerous surveys to compile data on the nonprofit sector’s experiences during COVID-19. This data is important for the East Tennessee region to quantify the impact that reduced social services has on local communities and individual well-being as a result of the pandemic.