1

2021 Trends

Overarching Issues

Coronavirus continues to take center stage

Organizations need to remain dynamic and flexible

NY State and local governments will continue to grapple

with budget shortfalls (but not as steep as they claim)

No more business as usual, unless usual means completely

different

Increased collaborations

The need to stay connected and informed

2

2021 Trends

State of the State

New York State has significant budget shortfalls

October mid-year report - $8.2 billion for fiscal 2021 and $16.7 for fiscal 2022

Additional federal aid, an increase in State revenues of $8.0 billion ($3.8 billion in

2021 and $4.2 billion in 2022), and a booming stock market should all help to bring

those shortfalls down

State exploring legalized recreational marijuana and gambling to help close the

budget GAAP

20% Holdbacks - Currently more than $3 billion has been withheld from localities,

school districts, nonprofits, state vendors, and state operations spending, including

employee raises

3

2021 Trends

CARES ACT

PPP 2 Funds

25% drop in revenue for at least 1 quarter of 2020

Less than 300 employees

Used all prior funds

Limited to $2 million

Expanded uses of funds

Unemployment insurance

50% federal subsidy extended though March 14, 2020

Should be reducing state payments by the subsidy

Employee Paid Sick Leave Act

Employers can extend through March 31, 2021 and continue to apply for credit (up to 80 hours cumulative)

4

2021 Trends

CARES ACT

HHS

Quick reminder that if you received need to file by 2/15/21 for forgiveness or

extension

Anticipate a 4th round to be made available

Employee Retention Tax Credit

First 2 quarters of 2021

20% decline in revenue from 2019 to 2021 or fully or partially suspended operations

Less than 500 employees

70% of qualified wages and health benefits up to $7,000 per Q

5

2021 Trends

CARES ACT

Click the covers to view Coronavirus Relief Guides **Information as of January 7, 2021**

6

2021 Trends

Fundraising/Communication

Donors want to know how you pivoted your program during the Pandemic Donors have a shorter attention span – Need to show social impact succinctly Personalize your Messaging (one size does not fit all)/Maximizing Donor experience

What differentiates your organization Keep Donors engaged like they are Part of the Organization “Backstage Tour” – Make it personal (less transactional) Better linkage of donations to impact/service ($25 feeds a family for a

week, $500 provides a family shelter for the month) AI powered personalization

7

2021 Trends

Fundraising/Communication

Know your Target Market (link social media to who you are targeting)

Tick Tock was the number one downloaded social media platform during 2020 (Tik Tock for Good – Community Focused)

Facebook is the most widely used platform (Facebook Fundraiser) Instagram Linked In Twitter, Twitch, Snapchat

8

2021 Trends

Fundraising/Communication

Videos will Make-up more than 82% of on-line Traffic Next Year (Cisco)

Share snippets of your story Show programs in action Tap into celebrities and influencers Live Streaming campaigns

9

2021 Trends

Fundraising/Communication

Increased levels of social entrepreneurism Business becoming socially responsible global social justice movements – consumers looking for businesses to

take a stand Nonprofits becoming more scalable and sustainable

Find Ways to Creatively Partner with Your Business Donors (corporate giving is predicted to increase by 1.4% in 2021)

Virtual events are here to stay Ability to hold multiple touches throughout the year instead of one gala

56% of Virtual Event Organizers met their goal in 2020 Events need to engage attendees

Need to engage your volunteers Gen Z and Millennials – Social media, videos, graphic design, App

Development, etc.10

2021 Trends

Fundraising/Communication

The largest increases from in-person events were in the areas of webinars and educational events and the largest decreases were in Gala’s.

11

2021 Trends

Fundraising/Communication

There is no off-line and on-line Need to keep messaging consistent across all platforms Virtual & augmented realities are growing

E-commerce is growing exponentially Donors and volunteers like to know how their efforts made a

lasting difference and how their contributions are being used Monthly donations are still on the rise

12

2021 Trends

Operations

2021 is your year to regroup, refocus your mission, and communicate your intentions to stakeholders

Proactive and not reactive Create your new normal

Many nonprofits will be looking to streamline operations Consider your new realities

Tenant vs technology Back office vs out of office (HR, Accounting, CRM) Local vs anywhere

Increased Collaboration in the Sector Shared Services Joint Programming Consolidation

13

2021 Trends

Technology

Going Mobile – 271 million smartphone users in the US by 2022 5G will make it easier to communicate via phone Mobile fundraising/Text to donate (Apple Pay, etc.) Mobile video content increases by 100% per year – make sure yours are

seamless Volunteer management systems Push info out to contacts (SMS Marketing) Keep people engaged and coming back

Increased Technology Spending Back office systems Enhanced and innovative service delivery Staff training and competencies

Cybersecurity Concerns Enhanced reliance on cloud-based solutions

14

2021 Trends

Most Significant Challenges

Inability to hold in-person programs, events, and conferences Effectively managing remote work and workers Sustainability of financial support Communicating with constituents, volunteers, and donors Achieve greater diversity in staff and leadership Continuing need to advocate to funders and policy makers

15

Ken Cerini, CPA, CFP, FABFA

Managing Partner of Cerini & Associates, LLP

Treasurer of Nonprofit Resource Hub

kcerini@cerinicpa.com | (631) 868-1103

www.cerinicpa.com | www.nonprofitresourcehub.org

Thank you to

our Speaker16

Click below image for our Nonprofit Trends Report!