The recession crippled the budgets of many nonprofits just as demand for their services rose. On top of shrinking
revenue from donations and fees, many organizations struggled with ongoing payment problems from one of their
biggest funders—government agencies. As a result, many were forced to cut services and staff or close program sites,
hurting the communities they serve. While pain from the recession may have been unavoidable, better government management
of contracts and grants can at least avoid adding to nonprofits’ financial stress.