Pennsylvania's nonprofits flounder, budget impasse continues

Pennsylvania's nonprofits flounder, budget impasse continues

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“Nonprofits are laying off or furloughing staff, reducing hours of service, creating waiting lists and reducing staff benefits -- many are spending down their reserves, drawing on lines of credit and seeking bridge loans,” said Anne Gingerich, executive director of the Pennsylvania Association of Non-Profits (PANO), in an interview with Pennsylvania Business Daily. “Some have maximized their lines of credit and simply have nowhere else to turn.”

PANO represents 865 nonprofit organizations ranging from YWCA chapters and youth theaters to Open Door Ministries and the Utility Emergency Service Fund, all feeling some impact from the protracted budget crisis. 

During a similar budget crisis in 2009, five shelters for domestic violence victims closed permanently due to the evaporation of state spending for social services. With the current impasse nearing its four-month anniversary, Pennsylvania nonprofits face similarly dire circumstances. 

“Some have decided to close their doors, eliminating services for individuals in need,” Gingerich said.

Source Name: 
Pennsylvania Business Daily
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