On an on-going basis, the UCLA Center for Civil Society monitors developments in the Los Angeles nonprofit and community sector and issues an annual summary report on the state of the sector in the region. A major concern of this year’s report is the continued uncertainty about California's financial situation, and the potential impacts of budget shortfalls and spending cuts on the capacity and sustainability of the region’s nonprofit and community organizations. At issue is no longer merely the sector’s finite capacity to meet LA's diverse and growing needs – be it in human services, health care, education and skill training, arts and culture or the environment – rather, as we will see, at stake is increasingly the medium to long-term sustainability of many organizations.