The nonprofit sector has been one of the hardest hit during this Fiscal Crisis. And, according to The Finance Project, most nonprofits are struggling with funding cuts — which usually mean budget cuts and cuts in programs.

Here are some important statistics about the Fiscal Crisis to keep in mind:

• Foundations, on average, lost about 28% of their capital this past year as reported by The Chronicle of Philanthropy earlier this year. Although at that time, the majority of foundations had not developed plans to cut grantmaking, during this year and next, leaders expect foundations to cut grantmaking outflow to run more in line with the reduced portfolio size.  There are some foundations that are making few changes, and others that are cutting back substantially.

• State governments cut their budgets last year, and most cut even more for the coming fiscal year budget (’10-’11). Since some areas receive greater cuts than others, the effect on grants and contracts could be anywhere from  cuts of 5% to 20%-25%, with larger cuts going to programs deemed less essential. States like California project draconian cuts; whereas New Mexico has a moderate level of cuts. In any case, cuts have already had a negative impact on community services, and will continue.

• Donors have pulled back substantially. Some donors who have been heavily impact-ted by the Fiscal Crisis stop giving, or cut back a great deal. Others cut back from fear of potential future financial problems. In any case, that important base of continuing, often unrestricted gifts is a lot weaker today, and for the foreseeable future.

• Nonprofits, on average, have received cuts averaging from 15% to 30% a year during the last two years. According to The Aspen Institute’s “Fiscal Crisis in the States: Impact on Nonprofit Organizations and the People They Serve,” nonprofits have been hard hit, and will continue to receive cuts. The types of cuts and overall scope of funding cuts varies from one organization to another, based on programs and services, funding sources, and diversity of funding sources. Nonprofits that provide services deemed less of a priority will find heavier cuts.  And, nonprofits are expected to recover more slowly than other sectors.

These are tough times. The Fiscal Crisis is affecting all areas of nonprofit life. And nonprofits are challenged in ways they haven’t been in many decades. The Fiscal Crisis has undercut nonprofit capacity in many ways.

As a consultant who works with nonprofits, I am deeply concerned about the impact these cuts have had on critically needed services and infrastructure. And I am even more concerned about the cuts which lie ahead.