The state's nonprofits weathered the early periods of the recession better than their for-profit counterparts, one study says, but that might be changing as donors continue to pull back.

Nonprofit employment increased by 2.7 percent in 2008, while for-profit employment decreased by 3.3 percent, according to a study released Monday by the Johns Hopkins Center for Civil Society Studies. Maryland's nonprofit workforce represented about 10.1 percent of all jobs by the end of 2008, the study found.

"Everybody felt the squeeze, but nonprofits found ways to cope and found ways to hire people," said Lester Salamon, the center's director and author of the study.

But those in the nonprofit world said the financial picture hasn't been as rosy in recent months as it was during the time period of the study's findings.

"I'm afraid that the numbers for 2009 won't be as positive," said Darryl A. Jones Sr., CEO of Maryland Nonprofits, a trade association with more than 1,700 members. "There is an increased demand and dwindling resources. Many nonprofits are struggling to meet those growing needs with fewer dollars and smaller staffs."

Jones predicted that hundreds of nonprofits in Maryland could shut down if the economy doesn't improve soon.

One recent casualty of the economic downturn that has dampened charitable giving is the Washington Village/Pigtown Neighborhood Planning Council, which is closing at the end of the month because it doesn't have enough funding, according to executive director Joe Coffey.

The organization, which provides public safety, workplace development and literacy services, lost a private grant that it used to help pay for day-to-day operations. The organization could tap federal and city funds but can't afford to pay upfront costs that could then be reimbursed through those grants.

"It's sad," Coffey said. "A lot of people need our services."

Goodwill Industries of the Chesapeake, which helps people find jobs and receive training to make themselves more employable, also is bracing for tougher financial times. Leaders there expect that foundations and businesses will have less to give, and they fear that the state government will cut nonprofit funding to deal with budget shortfalls.

"We're like every other program in the state - we're anxious about our state funding," said Phil Holmes, Goodwill's vice president of public policy and development. "We're going to do our level best to make the case that we're a good investment."

Goodwill, which has seen a constant stream of unemployed people seeking help, is trying to cope by increasing the revenue it generates. It plans to open two to three new retail stores this year, including one that will launch soon in Bel Air.

Salamon, from Johns Hopkins, said nonprofits have shown resilience even if they are struggling. The Hopkins study found that nonprofits were able to succeed because they received funding from public sector programs, such as Medicaid and Medicare.

"We're not suggesting that these are flush times for nonprofits," he said. "They are being innovative and entrepreneurial in serving the people that need their services."

Baltimore Sun reporter Jamie Smith Hopkins contributed to this article.