Spanish nonprofits look to 2022 for return to pre-pandemic activity levels

Spanish nonprofits don’t expect to return to their pre-pandemic levels of activity until 2022 as financial issues hinder recovery, according to the second edition of the Spanish Non-Profit Entities Barometer.

The Barometer, from the Spanish Fundraising Association in collaboration with the Deloitte Foundation and the Lealtad Foundation, surveyed 189 social entities and 233 business panellists to investigate the impact of the Covid-19 crisis on nonprofit organisations in Spain and how it is transforming their structures, management models and financing.

It found that more than 4 in 10 (45%) of participants predict a decrease in contributions from companies and individuals, which could put the sustainability of their programmes at risk. And, while in 2020, 72% had a reserve fund to help them face the pandemic months, for 27% the funds available are now reduced with a further 10% saying they have exhausted them during the past year.

This comes at the same time as nonprofits are facing increased demand for service delivery.

And, while 4 out of 5 the nonprofits questioned for the Barometer are optimistic that the Next Generation EU (NGEU) fund recovery package will have a positive impact on the Spanish economy as a whole, they are less optimistic that it will help the country’s third sector.

In fact, more than half – 61% – believe the impact will not be very significant and only one in five believes it will be substantial. This leaves less than half of those surveyed expecting to benefit directly from these funds.

However, despite the financial challenges, fewer organisations (28% of nonprofit participants) have had to make decisions affecting their staff so far this year, such as reducing working hours, making job losses, and using the ERTES furlough scheme. This is close to half of those who said they had to take action in 2020 (52%).

The organisations behind the Barometer are calling for more support for the sector.

Francisco Celma, president of the Deloitte Foundation, commented:

“In this recovery phase, nonprofit entities seek to return to their pre-crisis levels of activity, but are challenged by the difficulty posed by the new economic and social challenges. The role of these organisations has been key for the most vulnerable groups in a particularly complex year, so the public-private commitment with the Third Sector must continue to be strengthened in the coming months.”

Gisela Genebat, first vice president of the Spanish Fundraising Association added:

“With half having already consumed their available reserves due to the increase in beneficiaries together with the impact of the crisis on the structure of their organisations, many social entities are in an alarming economic situation. They urgently need an economic injection to maintain their essential social work.”