U.S. nonprofits report improvement in donations

U.S. nonprofit organizations are seeing a slight increase in donations — a sign they hope is the beginning of economic recovery — but the turnaround hasn’t been strong enough to keep up with higher demand for charitable services, a national report released Monday said.

About a third of America’s charities reported an increase in donations during the first nine months of 2010, and they said they expect more good news in the fourth quarter, according to data collected by a coalition called the Nonprofit Research Collaborative.