Wage Fight Poses Dilemma for Nonprofits Squeezed by State Funding

Wage Fight Poses Dilemma for Nonprofits Squeeze by State Funding 1

Derek Gee/Buffalo News/AP Images

Nonprofits that rely on state reimbursements to provide services say it would be difficult for them to absorb a minimum-wage increase.

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close Wage Fight Poses Dilemma for Nonprofits Squeeze by State Funding 1

Derek Gee/Buffalo News/AP Images

Nonprofits that rely on state reimbursements to provide services say it would be difficult for them to absorb a minimum-wage increase.

When Kathy Potter, a member of the board of the Minnesota Council of Nonprofits, learned last year that the group was planning to back efforts to raise the state’s minimum wage, her first thought was, “Are you kidding me?”

Ms. Potter, executive director of Access of Red River Valley, a charity that offers services to people with developmental disabilities, says she agrees that workers should earn a living wage. She was once a single mother holding down three jobs to