As Americans have coped with higher prices at the checkout counter, so, too, have the country’s nonprofits, which are paying more for basic goods, salaries, and rents than they did five years ago.
Even as the rate of inflation has slowed in recent months, hitting a three-year low of 2.4 percent in September, many are still feeling the crunch.
“I get frustrated sometimes when people say inflation has eased,” says Brian Kearns, an audit partner at UHY Advisors who works with nonprofits. “That doesn’t mean it’s gone negative. Costs are still going up. They’re just going up at a slower rate.”
The largest or wealthiest organizations might be able to dip into their reserves to survive a downturn, but the majority of nonprofits can’t operate on empty for long.
By some indicators, the financial tides have finally been turning, with prices rising far slower than they were a year ago, robust economic growth, and low levels of unemployment. Yet, with several of President-elect Donald Trump’s campaign promises spurring uncertainty across the nonprofit world, leaders say it’s unclear whether 2025 will hold relief or further turmoil.
Read the full article published by The Chronicle of Philanthropy.
Have a Question?
Complete this form to ask Brian a question.