Policymakers can help mitigate two major challenges facing nonprofits: disproportionately steep cuts in state funding and contracting practices that undercut t nonprofits' ability to effectively deliver services. The first step, however, is recognizing and acknowledging these dual problems.
Overall, North Carolina nonprofits experienced a 26 percent decline in state support last year. According to a recent report from the Urban Institute, North Carolina's decreased investment in nonprofits was the fourth-worst of any state.
The Urban Institute report and a new survey by the N.C. Center for Nonprofits highlight many systemic government contracting problems that nonprofits are experiencing.