Minnesota’s Troubles Take Toll on Charities
July 8, 2011 | Read Time: 1 minute
The problems facing nonprofits in Minnesota because of the government shutdown are perhaps more severe than those in other states, but they are all part of the same struggle as lawmakers and executive officials seek to close bulging budget deficits, Maureen West writes in article for The Chronicle.
The uncertainty of the length of the shutdown, coupled with concern about which programs might face deep cuts in the new fiscal year, are causing anxiety at most groups that get state aid, Jon Pratt, executive director of the Minnesota Council of Nonprofits, told The Chronicle.
“Minnesota’s budget deadlock reflects a national deadlock over the role of government and how it should be funded,” Mr. Pratt says. “Nonprofits are hurt by the lack of compromise.”
While the strain on nonprofits is growing clearer every day, few groups will collapse because of the shutdown unless it goes on beyond a few weeks, says Mr. Pratt.
“Most groups have enough to get through this week or even July,” he says. But “only about a quarter of our charities have deep enough reserves to get through more than a month or six weeks without a problem,” he says.
Even so, Mr. Pratt says he keeps hearing about groups facing short-term problems.
On Thursday, he heard of a domestic-violence shelter in western Minnesota that is sending its clients across the line to North Dakota for help. On Wednesday, the Minneapolis Urban League laid off 42 people, about half of its work force.
Read more about the challenges facing Minnesota leaders—and how they are coping.