Nonprofit finance professionals largely are optimistic about 2014 but are concerned about being competitive in compensation.
These are among the findings of a survey by CapitalOne Bank at the recent Greater Washington Society of CPAs Nonprofit Finance & Accounting Symposium.
Seventy-six percent of the nonprofit professionals surveyed indicated that they expect their nonprofit organization to grow in 2014. In addition, 57 percent of survey respondents reported that they experienced better financial performance in 2013, compared to the previous year. About a third (33 percent) stated that their financial health is unchanged from a year ago, and only 10 percent say it is worse.
The majority (63 percent) of those surveyed expect operational costs to be the greatest challenge for their nonprofit organization in 2014, compared to other potential issues such as access to government funding (21 percent), the Affordable Care Act (10 percent), and a cap on charitable deductions (6 percent).
Nearly half (45 percent) said that remaining competitive with pay and benefits will be the biggest personnel issue they face this year. Also, 55 percent of those surveyed said the greatest fundraising challenge this year will be increased competition among organizations.