A new report shows a drop in funding for nonprofit organizations in Arkansas, a 10 percent decline since 2000.

The report is from the Arkansas Community Foundation, Carl B. and Florence E. King Foundation and Winthrop Rockefeller Foundation.


Together, some 14,000 nonprofits receive about $1.5 billion a year in charitable contributions and government grants.

Said a news release:


In addition to declining giving, NPOs have cited a lack of available state and federal funding, diminishing donor bases and staffing issues as persistent challenges to meeting their fundraising goals. Organizations have also highlighted the need for increased coordination and collaboration with competing nonprofits.

“Nonprofits play an essential role in our state’s economy, and right now they need our help,” said Heather Larkin, president and CEO of Arkansas Community Foundation. “Without increased investments, these organizations will struggle to meet the needs of our communities.”

Some recent factors are at work that don’t bode well for nonprofits. One is pressure to cut government spending in Arkansas to enable more tax cuts for the wealthy. Also, the new federal income tax cut, which overwhelmingly benefits the wealthy, is expected to discourage charitable contributions. A higher standard deduction means fewer people will itemize deductions and thus have less incentive to make charitable contributions that can count as deductions.

There are currently more than 14,000 NPOs in Arkansas, which employ more than 90,000 residents. To help them, the report outlines some ideas, including educational sessions, regional collaboration, fund-raising ideas and grant-writing supprt. You can read the full report here.