Ongoing Impact of COVID-19 on Nonprofits
As we come up on two years of living in a pandemic environment, nonprofits have been and continue to be impacted in many ways. One recent development is in court rulings related to business continuity insurance and vaccine mandates, but nonprofits also see continued impact on programming and fundraising.
Court rulings
Recent court cases will have ramifications for nonprofits in several different ways. In December 2021, the 10th circuit ruled that a major nonprofit organization’s business interruption insurance did not cover COVID-19 shutdowns. Though the organization argued that the government-mandated shutdowns constituted a loss of property, the judge ruled it did not. Thus, the insurance agency could deny coverage for loss of revenue. Even for nonprofits that are not seeking insurance reimbursement for shutdown losses, the insurance agencies watched this case closely, and the ruling could have a cascading effect on other nonprofits and their insurance coverage.
The legal battle over vaccine mandates could also affect nonprofits. The Supreme Court recently heard a case on vaccine mandates and decided against the Biden administration’s policy of vaccinate-or-test all workers at large employers. This decision may affect nonprofits that have instituted their own vaccine mandate.
Programming
One of the immediate ways COVID-19 impacted all businesses and nonprofits was in their programming. Though we have largely moved past the days when programming was shut down completely for some, nonprofits continue to navigate the impact of the pandemic on the programs they offer. All decisions are filtered through a risk analysis and coupled with questions of how to adequately staff for available programs. The pandemic has altered the number of employees some nonprofits can support, and staffing for a particular event may be impacted by illness, isolation, or quarantine. Along with all the logistics of programming, nonprofits must also navigate liability waivers and expand the language in them to include both this pandemic and any future illnesses that arise.
Fundraising
Another way the pandemic continues to impact nonprofits is in their fundraising. Early in the pandemic, many fundraising events could not move forward, just like programming events. In the two years since, nonprofits have learned to adapt to virtual events and online giving opportunities. As many events have returned to being in person, some fundraising efforts have taken on a more familiar form. Cancellations due to surges and new variants are always possible, and nonprofits will continue to weigh the potential risks for in-person events.
“Between job changes, unemployment, and general economic uncertainty, many people changed their giving habits.”
The pandemic interrupted how much people donated as well. Between job changes, unemployment, and general economic uncertainty, many people changed their giving habits. Some people were fortunate enough to find ways to continue giving or give more, while others had to cut back. Nonprofits can no longer rely on past gifts to predict future gifts, though there are glimmers of donations returning to pre-pandemic levels and routines.
After nearly two years, nonprofits continue to adapt to the ever-changing scope of the pandemic. Their missions remain the same, but the impact of COVID-19 has altered elements of their program, policy, and fundraising efforts.
