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News/ State

Bay Area LGBTQ Nonprofits, Forced to Make Programmatic Cuts Amid Falling Revenue

Curtis Lahaie December 15, 2020

Horizons Foundation, the world’s first LGBTQ community foundation, today released preliminary findings from its October 2020 survey, which was distributed to organizations on its mailing list to identify the effects of the pandemic on nonprofits. Thispreliminary analysis focused on a subset of respondents that included only Bay Area LGBTQ organizations, 61 of which took the survey. 

·       Due to the pandemic, more than half of LGBTQ orgs (52%) have needed to reduce programs already, with an additional 18% reporting it as a possibility in the next year. At the same time, 39% report an increase in demand for services, which rises to 58% among LGBTQ POC organizations.

·       80% of organizations report a decrease in revenue; 29% report a decrease by half or more. A higher number of organizations (88%) with budgets under $250,000 report decreases in revenue of 10% or more, compared to 39% of organizations with budgets over $1 million.

·       58% of organizations report a decrease in revenue from individuals, while 21% have seen an increase. 76% of organizations with budgets under $250,000 report a decrease, compared to 38% of organizations with budgets over $1 million.

·       The majority of organizations received some sort of COVID-specific funding from foundations and/or the government: 62% received a grant from Horizons; 42%, another foundation; 29%, the city/county; 14%, the state; and 51%, the federal Paycheck Protection Program (PPP).

·       While all organizations with budgets over $1 million received a PPP loan, only 19% of organizations with budgets under $250,000 received one.

“These results are not surprising, given what we’ve seen across the community,” said Roger Doughty, Horizons’ President. “But that makes them no less concerning — and we know what we must do to strengthen our vital community organizations,” said Roger Doughty, Horizons’ President. “Individual donors, foundations, and the government must increase resources for Bay Area LGBTQ nonprofits, especially smaller ones and those focused on people of color.”

To strengthen organizations affected by the pandemic and its economic fallout, Horizons has awarded over $1 million in COVID-related emergency grants to Bay Area LGBTQ organizations; helped hundreds of organizations raise over $1.6 million through Give OUT Day, the foundation’s national day of LGBTQ giving; and launched a first-of-its-kind, no-interest loan program for local LGBTQ nonprofits. 

About Horizons Foundation

Horizons Foundation (www.horizonsfoundation.org) envisions a world where all LGBTQ people live freely and fully. The world’s first community foundation of, by, and for LGBTQ people, Horizons invests in LGBTQ organizations, strengthens a culture of LGBTQ giving, and builds a permanent endowment to secure our community’s future for generations to come. In 2020, Horizons is celebrating its 40th anniversary. Watch this video to learn more about Horizons’ four-decade history.

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