Weak Economy Leaves Long Island Nonprofits Squeezed by Banks

"What the banks are saying is, 'We've already lost money out there,'" said Ken Cerini of Cerini & Associates, a Bohemia-based CPA firm that has a large nonprofit clientele. "They're looking at the nonprofit sector and saying, 'Look, we don't want to be sitting out there on the hook.'"

Even large nonprofits are feeling the pinch. SCO Family of Services in Glen Cove has an annual operating budget of just under $200 million. But in August, its bank slashed SCO's $25-million credit line by 40 percent, said executive director Bob McMahon.