PR Execs at Cash-Strapped Nonprofits Use Partnerships to Extend Engagement

As the economy has slowly begun to climb its way out of the abyss, communications budgets across many industries have stabilized. But there’s one sector that’s still fighting for budget dollars even as the economy improves: nonprofit.Government aid designed to help organizations during the bubble is dwindling, so nonprofits are experiencing more budget fallout, as private donors scale back contributions and can’t come close to making up for government largesse. In GuideStar’s economic survey, released in January, 77% of nonprofit leaders said smaller gifts from individuals was the reason for declining contributions, followed closely by fewer individuals giving (75%).Adding to the pressure are growing demands from nonprofit leadership and the public alike to show results, including the “overhead ratio”—the share of a nonprofit’s money that it spends on administration—which is looked at closely by potential donors, the media and charity regulators.

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