The following analysis provides a baseline understanding of the fiscal structure of nonprofits that primarily serve Asian American and Native Hawaiian/Pacific Islander (AA NH/PI) communities and an overview of their funding sources. We broadly discuss patterns regarding utilization of government resources and contextualize the fiscal health of the sample by comparing capacity indicators of AA NH/PI organizations with those of a broad set of similar matched nonprofits. 

Why This Matters

The nonprofits in this study are important service providers, gathering places, and advocates for and representatives of AA NH/PI communities. For the leaders and donors interested in their financial sustainability, this study provides a baseline analysis of nonprofits’ fiscal health before the COVID-19 pandemic and an overview of the ways their financial structures are distinct from those of the rest of the nonprofit sector.

What We Found

The key takeaway from our study is that during the prepandemic period, AA NH/PI nonprofits had fiscal health profiles that were very similar to a matched sample of other nonprofits operating in the same service areas. These results suggest that AA NH/PI nonprofits have levels of managerial sophistication and philanthropic support similar to those of the broader nonprofit sector, with the caveat that they are growing slightly faster than peer organizations. Higher levels of organizational slack are also a function of more overhead spending and administrative capacity, which often occurs when organizations are investing in fundraising or expansion.

AA NH/PI nonprofits and a matched sample of similar nonprofits do not vary greatly on most dimensions of fiscal health, as seen below.