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Nonprofits face more needs, have fewer resources

Associated Press

LITCHFIELD, Minn. — Brenda Voigt, the manager of the food shelf in Litchfield, neatly summarized the problem facing many nonprofit social service providers in this economic downturn: "More people are coming to us, but we don’t have as much to give."

Nonprofits throughout the state are facing a similar bind. While layoffs and underemployment force a greater demand for their services, their funding has dried up from sources facing their own cutbacks.

A report released Tuesday by the Minnesota Council of Nonprofits said that in May, 56 percent of nonprofit organizations in the state reported an increase in demand for services, and 57 percent reported a loss of revenue.

The report said the revenue loss cuts across all sectors from which nonprofits are traditionally funded — government budgets, private foundations and individual contributors.

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"In business, when supply goes down, it typically means there is less demand," said Christine Durand, communications director for the Minnesota Council of Nonprofits. "Not so with nonprofits."

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