More than 1,700 leaders of Minnesota's nonprofit agencies and foundations are gathering in St. Paul to grapple with the challenges they face helping Minnesotans weather the economic downturn -- and other issues.

"This is the biggest meeting of nonprofits in the country, by a factor of two," said Jon Pratt, executive director of the Minnesota Council of Nonprofits.

The conference Thursday and today at the St. Paul RiverCentre takes place as many nonprofits face growing demand for services but flat or decreased funding, organizers said. Meanwhile, many of their funders, namely the foundation community, have seen the value of their portfolios decline.

Minnesota is home to more than 3,500 nonprofit groups, which employ roughly one in 10 state workers. The state's nonprofit and philanthropy communities are among the largest in the nation.

JEAN HOPFENSPERGER