Citing a $6 billion state deficit, Stamford Mayor Dannel Malloy reported at the recent Connecticut Nonprofits Conference that the last eight years have brought “an assault on social services.”
“Government has an obligation to provide for its citizens.” He delivered a passionate call to fund the state’s safety net, starting with a 1.5% average increase in nonprofit aid. “The needs of the least among us should be taken care of first.”
Fellow presenter and NYU Professor Dr. Paul Light predicted massive consolidation in the nonprofit sector due to recession. Smaller organizations will likely join together to reduce administration costs.
According to Light, nonprofit organizations represent a $1 trillion sector, powered by 11.5 million employees and 61 million volunteers.
He views a reduction in the number of nonprofits as inevitable and a chance to strengthen the sector. Instead of avoiding the situation, we should embrace the opportunity to start a strategic dialogue regarding which organizations should go under and which ones should survive.
WAKE UP CALL: As a member of the nonprofit community, how can you engage peers to begin open, honest communication about the challenging times ahead?
[…] the issues facing nonprofits. Read about the take-aways from Daniel Malloy’s speech about Facing the Recession from last year’s […]