Thin the Soup or Shorten the Line: Choices Facing Washington Area Nonprofits

November 01, 2003

Funding: Fannie Mae Foundation

Summary: Research on the state of non-profit human services agencies in the Washington, D.C. region during changing economic conditions showed that non-profits are taking short term responses to their rising client need, their increasing costs, their expanded reporting requirements, and their sluggish revenue growth. Many have dipped into reserve funds, frozen salaries, reduced direct assistance, or initiated staff layoffs. Some responsive non-profit human services agencies have begun to make longer-term adjustments by restructuring their organizations to acquire new sources of revenue, expanding private donor campaign efforts, and initiating revenue sources that are more market-based. The report particularly focused on the fiscal contributions of local governments to the human services nonprofit sector, discovering a multitude of support processes unique to each of the six jurisdictions examined.