Government contracting hurts nonprofits

October 18, 2010

Human-service nonprofits reeling from the troubled economy are reporting "serious and widespread" problems with government contracts and grants, a new study says.

Forty-one percent of human-service nonprofits say government agencies made late payments in 2009, for example, while 24 percent say delinquent payments are a big problem, according to the study by the Urban Institute.

With over 40 percent of nonprofits saying they faced a deficit in 2009 as a result of the recession, 56 percent reported less revenue from state governments, 49 percent from local governments, and 31 percent from the federal government, says the study, Human Service Nonprofits and Government Collaboration: Findings from the 2010 National Survey of Nonprofit Government Contracting and Grants.

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