Saturday, August 14, 2021

COVID-19 and The State of Nonprofit Organizations


The novel coronavirus or COVID-19 has ripped through the globe, infecting over 200 million people to date. COVID-19 has disrupted every aspect of society, including all components of social and economic life. Unfortunately, nonprofit organizations are not immune from the effects of the virus that has halted the world. Nonprofits universally have felt the pressure of COVID-19. A survey conducted by Independent Sector reported a clear decrease in revenue for the nonprofits questioned. Another study conducted by WealthEngine concluded COVID-19 resulted in 75% of  nonprofit organizations making budget cuts. While it varies how the pandemic has affected nonprofits based on their unique structures, I checked in with President of ASA, Dr. Louis Picard, and ASA’s experience as they trek through unprecedented times.


ASA’s mission and unique design seems to have protected them from the fundraising disruptions other nonprofits across the US have been experiencing. Dr. Picard noted ASA’s fundraising opportunities have yet to be disrupted and there has been an increase in generosity among people during the pandemic. The struggle for ASA is the current COVID-19 challenges ravaging Uganda. While the US is experiencing wide vaccine distribution, with an overall 50% vaccination rate, Uganda is significantly behind with an assumed vaccination rate at 1.3%. ASA relies heavily on the connections they make in Uganda with those whose stories they wish to tell. Dr. Picard mentions, “we really depend on meeting with people, monitoring what is going on the ground, and supporting training activities”.

Furthermore, the country has implemented severe lockdowns with the threat if arrest if defied. These intense lockdowns prevent individuals from making income to pay back the microloans provided by ASA. The microloan program is a key component of ASA's mission to provide the people of Uganda economic empowerment. In our interview, Dr. Picard reflects on next steps and how to adapt in a world where connectivity, the key to nonprofit organizations, has been disrupted.

In the face of ongoing challenges as a result of COVID-19, Dr. Picard appeared optimistic in accepting and adapting to the current conditions. ASA’s main battle is loan repayment, which is essential to the generation of new loans to be distributed, and is challenged by the strict restrictions implemented in Uganda. They take the loans in good faith, but the restrictions inhibit them from making income to pay them back. He mentions, “we must be realistic about loan repayment”. The current COVID conditions are disrupting the sustainability of the loan program ASA has established in Uganda. ASA plans to prepare a strategy to help alleviate the loan payments many in Uganda struggle with while adhering to COVID lockdowns. The successful loan groups are located in Gulu because they are dealing with projects in which they have experience like produce buying and selling which are grown and harvested there. While some have been able to pay them back, they are seeking an equitable solution. ASA has started a fundraiser this week seeking funds for the microloan project that will generate emergency bridging grants to help loan recipients coming out of the lockdown get back on their feet. Dr. Picard hopes to provide each group a grant to restart and to provide additional training and educational resources. He remains hopeful ASA will continue to persevere through the multiple components impeding them from normal operations.

For more information regarding ASA's current fundraiser: https://mailchi.mp/21ec78c35d63/2021microloan




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