Report: MN Nonprofits in Survival Mode

The Star Tribune reported that in order to survive a weak economic recovery and state and federal budget cuts, many nonprofits are cutting costs and consolidating with other organizations.

There has been no economic recovery for many small nonprofits in the state, according to a recent Star Tribune report.

The Minneapolis newspaper's Nonprofit 100 survey found that the largest 34 social services agencies that were studied saw revenues rise by an average of 13 percent in 2010, but most smaller agencies did not see any revenue boost.

In order to survive a weak recovery and state and federal funding cuts, the state's nonprofit sector has turned to cost-cutting and consolidation, according to the Star Tribune report.

Across the state, the number of nonprofit employers reportedly fell 2.7 percent in 2010 to 3,630. Job growth in the state's nonprofit sector-which includes large health care organizations like Blue Cross and Blue Shield of Minnesota and the Mayo Clinic-was virtually flat, the Star Tribune reported.

Human services providers-including homeless shelters and food shelves-have reportedly been hit the hardest in terms of receiving government funding. Meanwhile, those nonprofits have been reporting record demand due to high unemployment rates.