Charities Seek Bankruptcy Protection

“Our expectation is that this is just the tip of the iceberg,” said Diana Aviv, president and chief executive of Independent Sector, a trade association for nonprofit groups, pointing to a decline in donations and the difficulty such groups are having in getting loans.

Performing arts groups typically are the nonprofits hit first in economic downturns, as donors devote more of their giving to charities that address basic needs and consumers cut spending on entertainment. Groups like the Baltimore Opera Company and the Spartans Drum and Bugle Corps in Nashua, N.H., are either reorganizing under bankruptcy protection or simply going out of business.