Staff cuts loom for nonprofits

March 20, 2009

Just as demand for many nonprofits services skyrockets, the U.S. nonprofit sector likely will be cutting jobs in 2009, a new study says.

More than one in four nonprofits say they plan to downsize or lay off staff next year, compared to the 7.6 percent than foresaw reductions last years, says the study by Nonprofit HR Solutions.

And only about four in 10 groups say they anticipate creating new positions in 2009, down from six in 10 in 2008.

"While the economy might exert the same downward pressure on the nonprofit sector as many industries in America, mission-driven organizations face the added challenge of increased demands for their services," Lisa Brown Morton, president and CEO of the group, says in a statement.

For many organizations surveyed, a formal human-resources capacity is minimal or non-existent.

More than half have no formal staffing or recruiting budget, and fewer than one in three have one staff person who oversees human-resources activities, the study says.

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