The New York Times reported yesterday that the American Red Cross faces a $200 million shortfall and is planning to cut up to 1,000 of its work force.

The spokesperson for the charity was vague as to the reasons for the shortfall and the RIF saying, "...we are spending more than we are bringing in and...the fund-raising environment is competitive."

The blog, Don't Tell the Donor, says, "I'm willing to bet that this is not the first shoe to drop at the Red Cross or at other nonprofits facing similar pressure."

What do you think? Is this the harbinger of bad financial news for nonprofits?

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