The Impact of the Recession on Nonprofits, Human Services and Consumers

As states face the continuing economic uncertainty and in some cases, budget crises, layoffs are occurring, budgets are being slashed, waiting lists for services grow and nonprofits are expected to meet this increased need with less than ever before. When it comes to the impact of the recession on nonprofits the news is indeed, “terrible, horrible, no good, and very bad”.

  • The ability of nonprofits to deliver needed services or provide programming has been seriously limited by the recession according to a report by the John Hopkins Center for Civil Society Studies . However, the paper indicates that there is a silver lining to the recession cloud of gloom and doom – human services organizations have suffered somewhat less due to ARRA funding and remain resilient in the face of a bumpy future by utilizing coping strategies and flexibility.

Analysis of the PA Budget Agreement

The Pennsylvania Budget and Policy Center analyzes the $28.05 billion 2010-2011 budget agreement here.

Libraries and agricultural programs saw funds reduced. In addition, state funds were cut for autism intervention, behavioral health, child care assistance, domestic violence prevention, legal services, homeless assistance and mental health services. At this point, it is not apparent if ARRA funds will make up for the decrease in funding. Funding for early intervention (education), disability services and long term care was increased.