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February 02, 2015

Big 2014 Losses Spell End for $250-Million N.Y. Nonprofit

One of the country's largest social-service charities and a major provider of New York City programs for vulnerable populations said Friday that it is shutting down after losing $19.4-million last year, Crain's New York Business writes. The announcement left city and state officials scrambling to find groups to take over more than two dozen contracts with the Federation Employment and Guidance Service.

The $250-million nonprofit relies largely on government money to provide an array of employment, health, and other services for New York's elderly, sick, and disabled. While the 80-year-old charity did not say what was behind last year's losses, Crain's writes that city social-service organizations are facing major financial challenges as demand rises and reimbursement rates from governments fall, potentially fueling more closures as well as nonprofit mergers.