The Wrecking of a Blue-Chip New York Nonprofit

When Federation and Employment Guidance Services announced that it planned to close amid a $20 million revenue shortfall, the nonprofit world was shocked. But the ruinous series of decisions that wrecked FEGS—one of New York’s largest, most well-regarded social services organizations—was years in the making.

A Capital review of the nonprofit’s financial disclosure forms and yearly tax returns reveals an agency engaged in risky long-term behavior and slowly drowning in debt.