Study: The impact of COVID-19 and the State of Emergency in Social Organizations in Portugal
Research | 14 April 2020 Study: The impact of COVID-19 and the State of Emergency in Social Organizations in Portugal

The objective of this study started from the need to identify which are the main negative impacts in the organizations of this sector so that the proper support and solutions can be created.  Of the results, 77% of the organizations claim to have their revenues falling and 80% to have closed some activity open to the public. The impact on service to beneficiaries is to 51% of organizations due to the total or partial closure of the facilities. 63% believe they do not face the risk of dismissing their employees, yet 43% say they saw the number of volunteers decrease.

Regarding the ability to generate revenue, only 23% of organizations consider that there is no drop in profits. Of the universe of 232 entities that participated in the study, distributed throughout the Portuguese territory (53% have social services as their main activity), most point to a significant drop in revenues associated with the provision of services (34%), from fundraising activities, funds and donations (29%) and also members' fees or dues (26%). About 40% of organizations have a drop in turnover of more than 30%.

In terms of costs, the study concludes that there is a lesser effect than in revenues, since most organizations responded that they have not yet experienced an increase in their costs (55%). Of the entities that assumed the increase in costs, the largest share (40%) of the respondents pointed to the purchase of protective, disinfecting and safety equipment as the main factor. With regard to access to financial support, the study highlighted the existence of a large proportion of responses (65%) indicating that there is a high uncertainty in terms of the impact on financial support. Asked whether they think this outbreak is creating any new social problems, the vast majority (78%) spoke of a social and financial crisis, in parallel with the increase of poverty.

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