Although the disappointing results of earlier ex-offender programs convinced many that "nothing works so let's just keep prisoners incarcerated longer," research in the 1980s and 1990s has shown that intensive pre-release employment training and post-release employment programs and support can cut the rate of recidivism. Current initiatives include those conducted by nonprofit organizations and funded by the federal Office of Correctional Job Training and Placement (OCJTP). Characteristics shared by these nonprofit programs include the following: (1) program participants are largely minority males who lack high school diplomas and work experience and were convicted of non-violent drug-related offenses; (2) programs have formal contracts with local or state criminal justice agencies; (3) they need strong working relationships with employers; (4) they are helped by the availability of jobs produced by a strong economy; (5) recruitment of, and outreach to, participants are seldom a problem; (6) provision of transitional employment is a top priority; (7) post-placement services must be strong; (8) staff is crucial to program success; and (9) funding comes from criminal justice and workforce development agencies and private foundations and donors. Challenges for organizations that serve ex-offenders include providing continuity of services, expanding work force development strategies, and handling the impact of welfare reform. Developing trends point to supporting more effective practices, combining income and skills development, improving continuity of services, increasing investment, and expanding research efforts. (Five case studies of nonprofit ex-offender programs and 32 references are included.) (KC)