This Special Report examines the alarming condition of state budget deficits and three resulting threats to nonprofits: (1) governments slashing funds for programs they expect nonprofits to deliver; (2) governments withholding payments from nonprofits for contracted services already delivered; and (3) governments seeking revenue from nonprofits through new fees and taxes. This Report explains how these troubling
trends impact all nonprofits -- not just those with government contracts -- and produce a ripple effect hurting communities, charities, foundations, and, paradoxically, government itself.
This report concludes with a call to action, urging community leaders -- at governments, foundations, and nonprofits -- to work together to meet the enormous needs of the people they jointly serve. Policymakers have tough decisions to make, but they should make them with a deeper understanding of how certain actions are placing unreasonable burdens on nonprofits and, consequently, creating gaping new holes in the social safety net our communities desperately need right now.