diff --git a/CHANGELOG.md b/CHANGELOG.md
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,12 @@
 # citeproc changelog
 
+## 0.3.0.1
+
+  * Better handle `initialize-with` that ends in a nonbreaking space.
+    In this case, citeproc should not add an additional space
+    or strip the nonbreaking space.  Closes #37.
+
+
 ## 0.3
 
   * Change `makeReferenceMap` to return a cleaned-up list of
diff --git a/citeproc.cabal b/citeproc.cabal
--- a/citeproc.cabal
+++ b/citeproc.cabal
@@ -1,6 +1,6 @@
 cabal-version:       2.2
 name:                citeproc
-version:             0.3
+version:             0.3.0.1
 synopsis:            Generates citations and bibliography from CSL styles.
 description:         citeproc parses CSL style files and uses them to
                      generate a list of formatted citations and bibliography
diff --git a/man/citeproc.1 b/man/citeproc.1
--- a/man/citeproc.1
+++ b/man/citeproc.1
@@ -1,6 +1,6 @@
 .\" Automatically generated by Pandoc 2.11.3
 .\"
-.TH "citeproc" "1" "" "citeproc 0.3" ""
+.TH "citeproc" "1" "" "citeproc 0.3.0.1" ""
 .hy
 .SH NAME
 .PP
diff --git a/src/Citeproc/Eval.hs b/src/Citeproc/Eval.hs
--- a/src/Citeproc/Eval.hs
+++ b/src/Citeproc/Eval.hs
@@ -1999,8 +1999,9 @@
            -> Text
            -> Text
 initialize mblang makeInitials useHyphen initializeWith =
-   T.strip . T.replace " -" "-" . mconcat . map initializeWord . splitWords
+   stripSpaces . T.replace " -" "-" . mconcat . map initializeWord . splitWords
   where
+   stripSpaces = T.dropWhile (==' ') . T.dropWhileEnd (==' ') -- preserve nbsp
    -- Left values are already initials
    -- Right values are not
    splitWords =
@@ -2079,7 +2080,8 @@
       NullOutput <+> x = x
       Literal x <+> y =
         case T.unsnoc (toText x) of
-          Just (_, c) | c == '’' || c == '\'' || c == '-' || c == '\x2013' ->
+          Just (_, c) | c == '’' || c == '\'' || c == '-' || c == '\x2013' ||
+                        c == '\xa0' ->
                formatted mempty [Literal x, y]
           _ | isByzantineName name ->
                formatted mempty{ formatDelimiter = Just " " } [Literal x, y]
diff --git a/test/extra/issue37.txt b/test/extra/issue37.txt
new file mode 100644
--- /dev/null
+++ b/test/extra/issue37.txt
@@ -0,0 +1,56 @@
+>>===== MODE =====>>
+citation
+<<===== MODE =====<<
+
+>>===== RESULT =====>>
+J. Doe
+<<===== RESULT =====<<
+
+>>===== CSL =====>>
+<?xml version="1.0" encoding="utf-8"?>
+<style xmlns="http://purl.org/net/xbiblio/csl" class="in-text" version="1.0.1" name-form="long" initialize-with=".&#xa0;"> <!-- with a non-breakable space after the dot in initialize-with value -->
+    <citation>
+    <layout>
+      <names variable="author">
+        <name>
+          <name-part name="given" form="short"/>
+        </name>
+      </names>
+    </layout>
+    </citation>
+    <bibliography/>
+</style>
+<<===== CSL =====<<
+
+>>==== CITATION-ITEMS ====>>
+[
+    [
+        {
+            "id": "doeA"
+        }
+    ]
+]
+<<==== CITATION-ITEMS ====<<
+
+
+>>===== INPUT =====>>
+[
+  {
+    "author": [
+      {
+        "family": "Doe",
+        "given": "John"
+      }
+    ],
+    "id": "doeA",
+    "title": "Fruits",
+    "type": "book"
+  }
+]
+<<===== INPUT =====<<
+
+
+>>===== VERSION =====>>
+1.0
+<<===== VERSION =====<<
+