{ "docId": "019dd923-5e88-73ef-bd5a-3a0eacbf62a9", "docSlug": "e47a7bbdc51ee31f", "documentTitle": "2022 strategic update presentation", "authorId": "GoldmanSachs", "authorName": "Goldman Sachs", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "equity_research", "sourceTypeLabel": "Equity research", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.773, "pageNumber": 26, "pageCount": 89, "prevPage": 25, "nextPage": 27, "slideType": "appendix_disclosure", "function": "summarize", "density": "overcrowded", "nDataPoints": 10, "notes": "Contains footnotes referencing Goldman Sachs and other research sources.", "elementsJson": [ "paragraph", "footnote" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd5a-3a0eacbf62a9/26", "deckHref": "/decks/019dd923-5e88-73ef-bd5a-3a0eacbf62a9", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd5a-3a0eacbf62a9.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd5a-3a0eacbf62a9#slide-26", "components": [ { "bbox": null, "kind": "paragraph", "text": "Restrictive and inefficient funding processes were overwhelmingly raised by organizations as a key challenge. Funding is critical for nonprofits’ success in serving their communities. However, grantmaking practices are onerous; funding often comes with too many restrictions; the funding environment is uncertain and competitive; and recent inflation has created new budget challenges. Without stable revenue, nonprofits find it difficult to demonstrate for-profit efficiency in normal times as well as first responder crisis readiness in emergencies.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "14a91e4a-e19a-4cb8-be4d-909958a1f074", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "paragraph", "text": "10,000 Small Businesses Voices is an initiative to help small business owners advocate for policy changes affecting their businesses, their employees, and their communities. The Firm surveyed 10,000 Small Businesses program participants throughout the COVID-19 pandemic. Survey results helped shape public policy response and encouraged dialogue with members of the U.S. Congress, giving voice to their priorities as small business owners. The most recent survey in 2023 indicated that Black-owned small businesses are optimistic.73 They report plans to create more jobs this year than their peers, and they anticipate profit increases as well, despite the challenging economic environment. According to the survey, however, 37% of Black small business owners have found it difficult to access new capital and financing compared to 23% of all small business owners, while 45% of Black small business owners have dipped into their personal savings over the past three months to keep their business afloat, compared to 33% of all small business owners.74", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "194fe7e7-c9f5-4cda-9b33-12fa458fd959", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "paragraph", "text": "Donors' need to demonstrate a “return on investment” can detract from an organization's ability to focus on its mission. Organizations noted the “time tax” in grants requiring extensive reporting and documentation regardless of grant size. While grants make up a small", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3f64baa8-1cdb-4f43-8cfb-58cff60da7b7", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "paragraph", "text": "rejected at three times the rate of White business owners. Of those with household incomes of $75,000 or below, less than one-third of Black business owners received bank funding, compared to almost two-thirds of White business owners.70 During the COVID-19 pandemic, 61% of Black-owned firms applied for Payment Protection Program (“PPP”) funding, and of those, only 43% received all the funding they sought, versus 82% and 79% for White-owned businesses, respectively.71 Entrepreneurship is a powerful economic generator: the median net worth of Black entrepreneurs is 12 times higher than non-businessowner Black Americans.72", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "63b72eba-bd0a-4781-8487-1befc07f2013", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "paragraph", "text": "COVID-19 resulted in a significant uptick in temporary giving, but uncertainty over future fundraising coupled with rising costs due to inflation make it difficult for nonprofits to develop and execute long-term strategies. As an example, one organization providing meals for LMI seniors flipped from profitable to a deficit due to skyrocketing food costs. To address variable revenues and expenses, many nonprofit managers devote considerable time to identifying new funding sources at the expense of long-term goals.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "82976ccb-1291-414b-8dfe-d20247ef4d5c", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "paragraph", "text": "The Fundamental Economy research, based on a 2020 survey of more than 2,500 10,000 Small Businesses program alumni during the pandemic, found that though Black women are the most likely small business ownership group to prioritize hiring more workers if they receive funding, they are also the least likely to secure funding or have a banking relationship.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b0ebbe3c-f85d-4abe-a7df-bc6e2d15b614", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "source-note", "text": "70-74: Footnotes referencing Goldman Sachs and other research sources.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "13a2d60f-e4d3-4098-97fe-c21bc2af5867", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 30, "from": 21, "beatId": "969d2e14-68c3-4434-a7cc-38e81509811b", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Impact & Next Steps", "beatSlug": "consultants-gambit-impact-next-steps", "evidence": "The community engagement efforts and case studies demonstrate the impact and outline next steps.", "position": 3, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }