Goodwill Industries of Kentucky CFO Mark Hohmann joined nine of his colleagues from around the United States in contributing to a nationwide submission to the Business Journals as part of The Business Journals Leadership Trust.
The expert panel featured different outlooks on the second half of 2020 as it relates to the health of specific aspects and fields of business in wake of the initial brunt of the COVID-19 pandemic. This includes Mark’s insight on the current state of the nonprofit industry, which can be found below, along with a link to the full article.
“6. Additional strain on the nonprofit industry
I predict we’ll see several financial trends this year that will challenge nonprofit sustainability, specifically in the arts, human services, and private and higher education sectors. Nonprofits as an industry need to keep a keen eye on new business development given underlying changes in revenue models and the additional costs of meeting requirements related to operating during Covid-19. We are preparing for a second government-mandated closure of retail and other sectors during the upcoming flu season. As a former CFO in the independent school sector (K-12) with additional experience in higher education, I recognize the innate challenges that come with continuing operations during the Covid-19 crisis while establishing a new equilibrium in terms of balancing sheet strength/capital structure, financing and revenue models, and a sustainable operational (expense) model. According to a report by the Kentucky Nonprofit Network, more than 50 percent of nonprofits have less than three months of cash reserves — Covid-19 only exacerbated this issue and will call into question the sustainability of many organizations. – Mark Hohmann, Goodwill Industries of Kentucky, Inc.”