The recession has hit Island nonprofits hard, a recent survey by the Martha’s Vineyard Donors Collaborative has found.

Released this week and based on a survey done in May of a wide range of Vineyard charities, the six-page report by the collaborative found that 56 per cent of Vineyard nonprofits had experienced a decrease in contributions over the winter, and 20 per cent saw a dramatic decrease.

“The Vineyard has struggled like the rest of the nation as the recession takes its toll,” the report says.

The donors collaborative is an advocacy group devoted to strengthening the nonprofit community on the Vineyard.

The survey released this week warns things will likely get worse before they get better.

“There is a strong feeling that the Vineyard is lagging the rest of the country and has not seen the full effect of the recession; most believe it’s going to get worse,” the report says. “The state budget cuts for fiscal year 2010 are enormous but we won’t know how bad it will really be until the end of the summer, since so much of the Island’s annual fund-raising happens in July and August.”

A total of 56 charities were surveyed to gauge the effect of the economic downturn from last October through March; 38 of the nonprofits polled had over $25,000 in annual revenue and therefore must file with the IRS, while 18 smaller nonprofits had revenues under $25,000.

The survey found the recession has hit smaller nonprofits the hardest; 66 per cent reported a decrease in charitable giving compared to 50 per cent of larger charities reporting a decrease.

But nonprofits of all sizes report similar trends: smaller gifts from donors and fewer people giving. Making matters worse are cuts in private foundation grants, government grants and corporate assistance.

Decreased corporate gifts were three times more significant nationally then on the Vineyard, the survey found, reflecting the Island’s rural and small-business-based economy.

And yet despite all this news and unlike the national trend, the survey found that only 29 per cent of the nonprofits surveyed had cut their annual budgets between last year and this year. With some this is due to an increased demand for services as a result of the recession, the survey concludes.

Martha’s Vineyard Community Services, for example, provides an array of essential health and human services to people who would otherwise go without such services. And the poor economy has created an increased demand for services just as funding has grown scarce and charitable giving is on the wane.

The report also chronicles the effect of the recession on the Vineyard economy in general. Among other things it found:

• 1,005 Vineyarders were unemployed this past winter, or 11 per cent of the workforce, up 67 per cent from last year.

• There was a 500 per cent increase in the use of food stamps at Cronig’s Market this winter, a 22 per cent increase in visits to the Island Food Pantry, and a 100 per cent increase in the number of students eligible for free lunch at one Island elementary school.

• 216 people received services from Connect to End Violence, a Community Services program that combats domestic violence, up 90 per cent since last October.

• 175 families were on the waiting list for rental assistance in June.

• 10 people were homeless this winter.

• 142 people under the age of 60 filed applications for fuel assistance, double the amount from last winter.

Despite a drop in donations, the survey found most Island nonprofits have strong expectations for the upcoming fund-raising season and over the next year. A total of 93 per cent of Vineyard nonprofits said they were not in imminent danger of folding due to financial reasons, compared with 86 per cent nationally.

“More striking is that 68 per cent of Vineyard nonprofits said they expect to operate at or above break even this year, compared to 12 per cent nationally and 75 per cent expect to be at or above breakeven next summer compared to 16 per cent nationally,” the report said.

Peter Temple, executive director of the donors collaborative and author of the report, said many nonprofits have already made adjustments to their fund-raising efforts. Some have developed contingency plans he said, in case their annual fund-raisers see a reduction in giving; others have cut costs, reduced salaries and in some cases laid people off.

Mr. Temple said some have reached out to their larger donors to see if they can expect the same level of giving as last year. There has also been more collaboration among nonprofits.

“Ultimately you need to find a balance so you aren’t entirely dependent on fund-raisers. After all, there are only so many nights in the summer. And I think most nonprofits understand that. More nonprofits are looking into planned giving, in which people make donations a part of their wills, while others have built up reserves over the years for times just like this,” Mr. Temple said.

He said one advantage the Vineyard has is the inherent loyalty and affection many have for the Island.

“This isn’t about events, it’s about protecting the character of this Island we all love. That’s what’s in jeopardy, and we hope that donors recognize this and make the Vineyard a priority in their philanthropy this year,” he said. “Almost everything one loves about the Vineyard is protected, maintained or provided by Vineyard nonprofits; and they provide a safety net for the year-round population, who are the backbone of the Island.”

The donors collaborative will write more about the survey in a newsletter which will be inserted in the two Island newspapers over the course of the next week.