Nonprofit Newswire | The State of the States and Nonprofit Capacity

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February 23, 2010; Patriot-News | Thanks to the United Way of Pennsylvania which released findings from their study on the lasting effects on state-contracted nonprofits of the state’s 101 day budget impasse of last year. NPQ reported on the effects on Pennsylvania’s safety net as human service organizations waited almost 4 months for funding but this article reveals the more long lasting problems caused. Among the costs of that period are spent reserves which now must be replaced in a depressed fundraising environment, increased costs for unemployment insurance, and the price of debt. This has caused organizational frailties and the loss or reduction of some services even while needs have increased. The authors of the study caution that a delay in passing the 2011 budget could be deadly to some organizations. This story and the study it is based on is worth keeping in your files just in case you need it in your own state’s advocacy campaigns this year.—Ruth McCambridge