Following Hurricane Katrina, when many government agencies were slow to respond, the American people, working through nonprofit organizations, rushed in with food, shelter, clothing and manpower. It was an example of the nation's can-do spirit at its finest.

Major disasters such as Hurricane Katrina and the terrorist attacks of Sept. 11, 2001, shine a bright spotlight on nonprofit charitable organizations. But the fact is that a large and diverse nonprofit sector is hard at work every day. And it is a rapidly growing sector, as more and more Americans see the limits to what government can accomplish and, as we have throughout our history, find ways to get the job done ourselves.

According to a 2005 study commissioned by the Pennsylvania Association of Nonprofit Organizations (PANO) and a number of other key players in the sector, 634,098 Pennsylvanians are employed by the nonprofit sector. They make up 11 percent of the state's total workforce and account for more than $21 billion in annual payroll.

By virtue of both the important services they perform and their financial impact on the economy, nonprofit organizations are vital to the overall economy of both Pennsylvania and the nation. But two recent reports indicate the sector is struggling with its image, and it has a specific problem when it comes to attracting and retaining qualified executives.

A 2007 report entitled "Ready to Lead? Next Generation Leaders Speak Out" found 69 percent of nonprofit employees responding to a nationwide survey feel they are underpaid. The report indicated two-thirds are concerned that they cannot work their entire career in the nonprofit sector and be financially secure in retirement.

The report's coauthor, Patrick Corvington of the Annie E. Casey Foundation, told the Washington Post: "Next generation leaders are finding ways to get involved in social change and do good work, but they're finding ways to do that outside of the [nonprofit] sector."

Pennsylvania nonprofits are also feeling the pinch. My organization, the Lincoln Institute of Public Opinion Research Inc., in conjunction with PANO, recently conducted the 2008 Pennsylvania Charitable Organizations Survey. That survey found 45 percent of the responding nonprofits are having a difficult time hiring/retaining staff. Fifty-one percent said the biggest reason for the staffing problem is that nonprofits usually offer lower salaries than for-profit organizations.

In addition to organizational difficulties, the nonprofit sector is also suffering from identity concerns. A succession of high-profile scandals and problems at leading nonprofits, such as the Red Cross, has caused a trust issue in a sector that depends on the trust and confidence of givers to fund their operations.

The 2008 Pennsylvania Charitable Organizations Survey found 75 percent of the nonprofits polled rated the public's level of trust at "medium." Just 15 percent rate the level of public trust in charities as "high," and 10 percent said the public has a "low" level of trust in their efforts.

Joe Geiger, executive director of PANO, said the dip in trust is directly attributable to the recent scandals. "When a high-profile individual or organization behaves badly, it creates doubt about how others are behaving," Geiger explained. "Overall, the charity sector is highly ethical and efficient in the delivery of their mission."

Geiger is correct when he says Pennsylvania nonprofits are being "efficient in the delivery of their mission." And therein lies the good news in the survey. Thirty percent of the nonprofits said they are better equipped to fulfill their organization's mission than they were in recent years, while only 21 percent said they are less effective.

Helping nonprofits fulfill their missions is the fact that funding has increased over the past year at 35 percent of the nonprofits surveyed, remained constant at 42 percent, and dropped at 20 percent of the organizations. Over half of the nonprofits say they expect to raise more money in 2008 than they did in 2007.

While much of the nation's attention is focused on the ills of the for-profit sector, nonprofits continue to struggle with their own set of unique issues. Fortunately, there is a deeply embedded component of the American psyche that compels us to support charitable organizations. Thus, despite the challenges, the sector continues to be a vital part of our society.