Minnesota Council of Non-Profits - Non-Profits are Strugggling

FROM: http://www.mncn.org/outlook.htm#Media

What we found: The impact of the 2008 recession on Minnesota’s nonprofits has been atypically quick and sharp. Unlike previous downturns, when nonprofits saw a lag in effect due to the timing of grants and contracts, the 2008 recession has already reduced nonprofit services at the same time that more people are in need of the services provided by nonprofits.
Over half of the organizations (54.5%) have experienced a decline in total revenue. Fortyseven percent are receiving reduced individual contributions. At the same time, 49.2% have to pay increased expenses.
This decreased program service is coming at the same time that 42.4% of organizations report that more people are in need and coming to them for services – yet 49.1% of these have already reduced their staff.
By December 2008, many organizations have made changes in operations, including reducing their budgets (44.7%), putting expansion plans on hold (27.1%) and eliminating staff positions (25.6%). It is worth noting that staff costs represent the lion’s share of most nonprofits’ budgets, so that any meaningful budget reduction translates into reductions in staff that provide services and programs forthe community.