ABSTRACT
This article draws on literature on nonprofit resilience to hazards to explore the impact of federal Paycheck Protection Program (PPP) loans on nonprofits' staffing, services, and financial health during the COVID-19 pandemic's first year. Through propensity score matching with survey data collected in spring 2020 and winter 2021 from the New Orleans area, linked to publicly available PPP data, nonprofits that did and did not receive a PPP loan were matched on covariates representing critical resilience capacities pre-pandemic, allowing calculation of effect sizes for short-term outcomes. Results suggest that PPP tentatively supported nonprofit liquidity in the form of reserves, but had at best mixed results in promoting service maintenance, and did not support hiring or staff retention in excess of the non-treatment group. Despite the small sample size, these preliminary findings inform how PPP may have supported short-term sustainability and help guide future federal policy to support nonprofits during crises. © The Author(s) 2023.
ABSTRACT
Racial diversity in nonprofit leadership presents a variety of benefits crucial for responding to the COVID-19 pandemic. However, leadership remains predominately white. Practitioner-oriented studies decry racial disparities in nonprofit funding, but academic literature offers mixed conclusions on how diversity influences resource acquisition. This article examines associations between racial composition of nonprofit leadership and organizational resilience to the pandemic, based on a survey of New Orleans-based nonprofits in winter 2021. Logistic regressions assess whether leadership diversity increases the likelihood of organizational resilience in both service delivery and financial health, finding that greater board diversity is associated with targeted programming and advocacy to support racially diverse communities, and expanded service delivery. However, greater Black board representation is associated with lack of reserves, threatening financial sustainability. The analysis uncovers disparate effects of racial diversity on resilience for service delivery versus finances, suggesting diverse nonprofits are "doing more with less" in response to the pandemic.