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Nonprofit Staff Go Without Pay

Ruth McCambridge
November 23, 2010

November 22, 2010; Source: WSOCTV.com | In Hickory, N.C., Exodus House, an agency that helps ex-cons transition back to society finds itself unable to pay its staff. Over the past two years, according to the executive director, Susan Smith, the agency has also lost $350,000 in revenue and closed two of three facilities. Says Smith, “We have, every day, tried every idea that we could think of to cut cost and raise revenue.” One of the problems, according to this article from WSOCTV, is that a part of the organization’s revenue comes from the working residents—and with unemployment fewer residents are working. Exodus House has to raise $75,000 by year’s end but it is not clear in what condition that will leave the agency. In a recent survey by GuideStar, a full 8 percent of nonprofit respondents said they felt in imminent danger of closing. As NPQ watches the news reports as this year draws to a close, we are noting what kinds of operations may be placing themselves in this category.—Ruth McCambridge

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About the author
Ruth McCambridge

Ruth is Editor Emerita of the Nonprofit Quarterly. Her background includes forty-five years of experience in nonprofits, primarily in organizations that mix grassroots community work with policy change. Beginning in the mid-1980s, Ruth spent a decade at the Boston Foundation, developing and implementing capacity building programs and advocating for grantmaking attention to constituent involvement.

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