The financial health of the social sector, 1998-2017

Leaders wonder aloud if we will soon see mass bankruptcies of nonprofit organizations—just at a moment when their services are most needed. We’ve seen a response: in the United States, the federal stimulus offers billions to the nonprofit sector, and many donors are changing their practices. But it is not clear if these actions will be enough, and many in the field face difficult questions with practical implications: should my foundation increase payout? Does my nonprofit need to lay off staff or sell assets? Is this the rainy day we’ve been waiting for?

These questions can be informed—if not answered—by a historical perspective.