Donors' Money Woes Put Nonprofits in Jeopardy

April 10, 2009, USA TODAY — Vital Life Services, a non-profit established in Oakland 24 years ago to assist low-income and homeless residents dealing with HIV/AIDS and related problems, is facing a do-or-die scenario, executive director Peggy Bush says.

Cuts in both government funding and private donations have left the organization struggling to make payroll and threaten the continuation of services to more than 400 clients. Government funding of the group was cut from half of its budget in 2007 to about a third in 2008, she says, and contributions have dropped a "catastrophic" 70% since last year. Its annual budget is about $750,000.