State Bankruptcies Would Put Many Charities Out Of Business- The NonProfit Times MAR 14, 2011

State Bankruptcies Would Put Many Charities Out Of Business- The NonProfit Times MAR 14, 2011: "State Bankruptcies Would Put Many Charities Out Of Business

For states like California, which is $42 billion in debt, and Illinois, with a $15 billion deficit that includes $8 billion owed to vendors and nonprofits, the idea of declaring bankruptcy might seem like their only option.

But, for nonprofits, “it would be completely disastrous and ill conceived,” said Laurel O’Sullivan, vice president of public policy at Donors Forum in Chicago, and a member of the National Council of Nonprofits. Many nonprofits wouldn’t be able to survive on philanthropy alone and would shut down, resulting in the municipalities and states having to pick up the pieces."