Lots of stories lately about how the current economy will affect philanthropy and nonprofits:
- Implications for philanthropy following news about Fannie Mae and Freddie Mac (Chronicle of Philanthropy)
- Implications following news about Merrill Lynch and Lehman Brothers (Chronicle of Philanthropy)
- Charities Brace for Wall St. Fallout (Crain’s New York)
- U.S. Charities Feel Chill from Weak Economy (Reuters)
- Arts Groups Fret the Woes of Big Donors (Washington Post)
The Chronicle of Philanthropy’s live discussion this week was titled Weathering the Financial Storm. Three experts answered questions such as what impact the credit crunch will have on donations, whether to acknowledge the uncertain times in a solicitation letter or grant application, what fundraising strategies to avoid, how to make financial projections, and more. Read the full transcript…
Meanwhile, the Giving USA Foundation sought to answer the question “What Happens to Giving During Recessions and Economic Slowdowns?” by looking at the U.S. economy since 1969 and found that total giving rose in every year except one. In a press release (warning: PDF), past Giving USA Foundation chair George C. Ruotolo Jr. said:
“When the economy is uncertain, as it is in 2008, non-profits and others naturally assume the one sector that will be heavily impacted is philanthropy. With history as our guide, we know that’s not true. In fact, while charitable giving is impacted by recessions and/or economic slowdowns, it’s not by nearly as much as one might expect.”
Join the conversation: What do you think? Is it too soon to predict what will happen? Is your organization doing anything differently because of the current economy?
