The city is putting up $2.5 million to setup a capital fund tohelp all nonprofits, and another $500,000 to help create anemergency rent fund to aid nonprofit services. The cash can be usedfor a variety of expenses, including moving expenses, deposits,buying property and hiring a fundraiser who in turn can help thenonprofit to net more money.

"This obviously comes from the public concern that one of theconsequences of our prosperity is that it puts the squeeze on ournonprofit community," said Supervisor Michael Yaki, chief sponsorof the legislation to create the assistance fund.

A study conducted by the Partnership For Affordable NonprofitSpace - a group formed earlier this year - found that nonprofitsoccupy nearly 2.6 million-sf in San Francisco, employing more than6,600 people and using 16,000-plus volunteers. According to thestudy, the average nonprofit spends nearly 7 percent of theirbudget on space, but could increase to 20 percent with the City'svolatile real estate market.