Area nonprofits planning for higher expenses

Area nonprofits planning for higher expenses

By SAM KLOMHAUS

A study detailing the economic impacts of nonprofits in Mesa County found many are planning to have higher expenses in the coming years, and a lesser number are anticipating a revenue increase matching those expenditures.

According to the study, which was based on 2022 data, 87.5% of the 31 nonprofits that were surveyed for the study anticipated budget expenses to increase, with 59.4% expecting budgeted revenues to increase. Additionally, 81.3% experienced an increased demand for services from 2021 to 2022.

The study, which omits religious organizations and hospitals, was conducted by Colorado Mesa University economics professor Nathan Perry, who presented the results Tuesday.

Perry said many organizations anticipate increasing individual donations and grants/foundation support over the next five years, but a potential recession could negatively impact individual giving.

Roice-Hurst Humane Society CEO Anna Stout said the data is going to help nonprofits be realistic about their projections, and respond accordingly.

Stout noted people who work at nonprofits can be optimistic about their organizations’ prospects.

Grand Junction Housing Authority Chief Operating Officer Scott Aker said nonprofits serving similar functions are going to have to better share information and not worry too much about who’s in charge of things, because they should assume increased revenues are not on the way.

“We’re going to have to cluster and partner and case manage and system navigate better because we can’t buy our way out of this,” Aker said.

Stout said the group is hoping to keep this survey effort going every few years so they have better data to work with.

“We’re all in the same pool, so we need to care for that pool,” Stout said.

The presentation was given at the Western Colorado Community Foundation’s new building at 128 N. 5th St., called the “Center for Philanthropy.”

The building includes event spaces other nonprofit organizations can use.

WCCF President and CEO Anne Wenzel said the foundation is looking to become more of a “hub institution” with the new space.

The foundation has grown substantially since its inception in 1997. Back then, the organization had $90,000 in total assets under management in two funds, giving out $90,000 in grants and scholarships. According to WCCF’s 2022 annual report, the organization had $151 million in assets under management in 330 different funds, including $11.7 million in new donations and legacy gifts in 2022.

“We’re just very pleased to have a home with space to grow right here in downtown Grand Junction,” Wenzel said.

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