ABSTRACT
Today, nonprofi t agencies in the US are facing a fi nancial crisis unlike any time since the Great Depression. State and local governments are slashing spending for countless agencies, even many longstanding ones providing vital services. The assets of foundations have plunged, leading them to cut their grant levels substantially. And individual donors are facing declines in their asset values in a time of major layoffs and economic uncertainty. This dramatic shift in the revenues of nonprofi ts is exacerbated to an extent by its timing: The number of nonprofi t agencies has grown dramatically in the last 15 years, so more agencies than ever are competing for rapidly shrinking public and private funding.
