This is the fourth report on The State of the Nonprofit Sector in Los Angeles, issued by the UCLA Center for Civil Society. Examining the region’s nonprofit sector in 2006 reveals that although times are hard for nonprofits, there is room for optimism. For example, we had feared a quick contraction of the nonprofit sector, in the form of a negative growth rate, in the wake of the California’s continued fiscal crisis, now well into its fourth year. What we find, however, is continued growth of the nonprofit sector, albeit slow growth. For nonprofits in Los Angeles, this overall assessment could reflect new opportunities on the horizon.