Minnesota's nonprofits are fighting to keep their heads above water after an April freefall caused by the COVID-19 pandemic.
Survey results released by the Minnesota Council of Nonprofits, along with the U.S. Federal Reserve Bank, showed an esitmated loss of $1 billion in profits last month alone.
"Arts organizations and health groups saw the biggest dip in income in April, about $1 billion," said Minnesota Council of Nonprofits Executive Director Jon Pratt.
Pratt, who spoke with Dave Lee during the Morning News on Tuesday, said classes, public performance, government contracts, and charitable contributions make up a majority of income for nonprofits.
The economic hardship certainly was felt over the weekend when the Guthrie Theater in Minneapolis said they would remain closed for the rest of the year only to return next year with a limited schedule.
"They're also a venue for public events and large public gatherings were the first things to be canceled and will probably be the last things to return."
Survial for some nonprofits appears to be grim with nearly half of the 528 who responded to the survey saying they had less than three months cash on-hand.
"It really depends on your revenue sources and balance sheet going into this situation," he said. "Some say 20 percent may be in jeopoardy. We could see nonprofits layoff their entire staff and go to all volunteers-status."
While Pratt says the State of Minnesota has loosened regulations around the Department of Human Services and DEED, more calls are being placed to the federal government to infuse state budgets.
