Management, Credit Hurt Nonprofits, Expert Says

But, he said, there is the possibility of rejuvenation for nonprofits that "think the unthinkable" by taking a cue from the business sector and merging to improve efficiency and productivity, or pooling resources and sharing back-office functions such as accounting, personnel and marketing.

"Some will survive this tough period and perhaps prosper; others will wither," Light said. "Many already have instituted hiring freezes and salary caps. If revenues don't pick up and the stock market continues to plummet, some won't be able to make payroll."