How nonprofits adapt to a stringent environment

Abstract

Results from a survey of nonprofit human service agencies in Arizona are presented. Most agencies reported steady or declining revenues, increased competition with other agencies, and rising demand for services from clients who cannot pay. The strategies used to adapt to these changes ranged from small‐scale productivity enhancements to responses involving a complete restructuring of the agency as well as cutbacks in client services. The discussion focuses on the implications of the results for the continued viability of these agencies and their ability to maintain their commitments to poor clients.