BTC BRIEF: NC Nonprofits Pinched: State Support for Nonprofits Plummets as Need for Services Grows

By Edwin McLenaghan
Oct. 2010

KEY FINDINGS:

• State-funded grants to nonprofit organizations for services such as community and
economic development, post-secondary financial aid, assistance with food and shelter,
and environmental preservation plummeted more than 25 percent from fiscal year 2008-
09 to fiscal year 2009-10.

• Total grants to nonprofits from state and federal sources grew in fiscal year 2008-09 due
to supplementary funds from the federal Recovery Act, but total grants from state and
federal sources declined by 20 percent in fiscal year 2009-10 and are expected to drop
further as Recovery Act assistance tapers off in 2011.

• The decline in state grants to nonprofits coincides with decreasing financial support from
private donors and an increase in the need for nonprofits’ services driven by job losses and
cutbacks in government-provided services.

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