One-quarter of Long Island nonprofit organizations are either going through a merger or thinking about one, amid increasing demand for their services and shrinking government funding, according to the 10th Annual Nonprofit Survey released today by Bohemia accounting firm Cerini & Associates.

“That’s a significant number,” said Kenneth Cerini, managing partner of the firm and editor of the survey, noting industry consolidation is inevitable as nonprofits struggle to do more with less. “There has to be some level of economy of scale,” he said.

The vast majority (82 percent) of responding agencies reported serving more individuals this year than last, and about a quarter (26 percent) do not believe they will have the resources to meet growing demand. Forty-two percent of agencies are anticipating losses for 2014, while nearly half say they will not give their staff a raise in the next year.

Collaboration is a hot topic, with 45 percent of nonprofits reporting they are partnering with other organizations for service delivery and an additional 19 percent considering such partnerships.

“Increased collaboration is necessary, and it has to occur at all levels – program, administration and fundraising,” Cerini said, adding nonprofits also need to find ways to work with for-profit businesses to create mutually beneficial arrangements.

Of the survey’s 125 responses, the largest percentages came from human service organizations (31 percent), other healthcare organizations (12 percent), arts and culture institutions (10 percent) and schools (9 percent).

By Bernadette Starzee/LIBN