Nonprofits feel pain of the recession

A report released today says Minnesota nonprofits are continuing to shrink their budgets and staff in response to the current recession.

Jon Pratt is the executive director of the Minnesota Council of Nonprofits, which conducted the survey. Pratt says the economic crisis is crippling nonprofits, at a time when people need their services the most.

"All the major revenue sources for nonprofits are down. But also, demand is up, especially for organizations that provide emergency food, housing, the crisis counseling and job training," said Pratt.

Pratt says nonprofits that rely on government money are having problems planning their budgets, because payments have not been reliable.

The report also noted the recent demise of two longstanding nonprofits, Centro Legal and the Minnesota Senior Federation.

Pratt noted one bright spot among nonprofits. Agencies that have received federal stimulus money, such as Headstart and weatherization programs, are growing.