PHILANTHROPY AND THE ECONOMY

GG+A Quarterly Review, Winter 2010
Discussed in this issue:

•  Working Effectively with Major DonorsThrough the Recovery
•  Wealthy Donors Continue to Support UK Institutions
•  Higher Education Relies on Loyal Donors in Difficult Times

Click here to download the Winter 2010 Quarterly Review

Poised for Economic Recovery: Institutions Persevere to Meet Pressing Needs While Preparing for the Future
From the GG+A Quarterly Review, Fall 2009 Issue: "GG+A spoke with leaders across the spectrum of nonprofits this summer to gauge their reactions to the economic challenges of the past year. "  Click here to read more.

The Role of the Trustee in Trying Times; Philanthropic Expectations and Economic Uncertainties Create New Challenges
From the GG+A Quarterly Review, Spring 2009 Issue:  "Trustees across all sectors are working more closely than ever with senior management to find ways to stretch resources, protect programs, and combat ongoing losses in endowment revenues." Click here to read more. Full issues of the GG+A Quarterly Review can be downloaded here.

Letter to the Philanthropic Community on the Economy from John Glier
October 30, 2008
“While we do not dismiss the current downturn nor the obvious and apparent impact it is having today on institutions and their constituents, our long-term outlook remains positive and forward-thinking.  Part of our optimism is rooted in historical fact; over the last 40 years, philanthropy in the aggregate shows consistent year over year growth and is not correlated to movements in the stock market.” Read more

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ARTICLES

Quarterly Fund-Raising Index Shows Slight Uptick
From the Chronicle of Philanthropy, March 5, 2010: "The new Chronicle of Philanthropy Index aggregates quarterly changes in four key economic indicators that affect charitable giving. The index compares how today's economy looks compared with the third quarter of 2008 when the nation was on the brink of financial collapse. The two most recent quarters' results show a slight upward move compared with the index's low point in the second quarter of 2009.” Read more

Charitable Causes and Effects: Wealthy Americans Conflicted About Their Philanthropic Giving Amid Downturn
From PR Newswire, March 1, 2010: “The majority of wealthy Americans have maintained a sense of obligation to give financially to their communities amid the economic doldrums, but more than one in four have cut their giving, according to the Wealth and Values Survey by PNC Wealth Management, a member of The PNC Financial Services Group, Inc. The sixth annual survey of 1,046 affluent Americans, all of whom have at least $500,000 in investable assets, revealed despite the recession that has affected all Americans, the sense of giving has not dropped significantly from previous years, when times were better.” Read more

Strong Fund-Raising Push Seen as Key to Surviving Slump
From Bloomberg, February 24, 2010: “With the U.S. in a severe economic slump, nonprofit groups must work harder to raise money and find new ways to reach patrons. While some are focusing on wealthy executives and celebrities, others are utilizing social network sites such as Facebook to reach a younger audience. ‘The nonprofits that ask more people for donations are the ones that are succeeding,’ Stacy Palmer, editor of the Washington-based Chronicle of Philanthropy, said in a phone interview. ‘They just have to work harder at it.’” Read more

The State We're In: How Bad is it Out There?
From the Nonprofit Quarterly, Volume 16, Issue 4: "As the Nonprofit Quarterly has watched the impact of the downturn on nonprofits, we have noted several determining factors that make the economic environment more dangerous for some nonprofits than for others. One of these factors is, quite simply, geography or, more specifically, the key economic drivers in the state in which a nonprofit is located." Read more

The Philanthropy 50: A Slow Year for Big Gifts Spurs Creativity by Wealthy Donors
From the Chronicle of Philanthropy, February 7, 2010: "While the recession is dissuading some of the country’s wealthiest people from donating, it is spurring others to get more creative in their giving. Gifts for new buildings were few last year, while donations to solve environmental and social problems, ameliorate the recession’s toll, and encourage charities to work together and in new ways, were more common." Read more

Fund Raisers See Glimmers of Hope, But Tough Challenges in 2010
From the Chronicle of Philanthropy, February 7, 2010: "The New Jersey Performing Arts Center expects to raise $10.7-million this year, 5-percent more than in 2009. Peter Hansen, the center’s vice president of development, says he is grateful to be projecting an increase of any size. This is the harshest fund-raising climate in his nearly 30 years in the profession, he says." Read more

What's on One Fund Raiser's Mind in 2010? By Jeffrey A. Schoenherr
From the Chronicle of Higher Education, January 29, 2010: "The end of 2009 showed improvement in charitable giving—not necessarily in dollars raised but in terms of encouraging increases in donor participation. In a tough economy, an increase in participation rates is a terrific sign of philanthropic confidence. It gives us the opportunity to steward those donors and keep them with us as we move into better times. A broader base of participation should lead, eventually, to a higher level of donations." Read more

With less Money to dole out, Foundations become more Targeted in their Giving
From Crain's Chicago Business, January 25, 2010: "With less money to dole out, foundations have become more strategic in their giving, targeting fewer areas with larger grants to organizations that fit the bill. 'Doing fewer things well, in a deeper, more engaged way, is probably better than a scattershot approach,' says Phil Buchanan, president of the Center for Effective Philanthropy, a Cambridge, Mass., non-profit research organization." Read more

Sharp Rise in Donations to Community Foundations (UK)
From the Third Sector Online, January 21, 2010: "Philanthropists donated £33.5m more to community foundations in 2008/09 than they did the previous year, according to figures released yesterday. The research by the Community Foundation Network, which represents the UK's 57 community foundations, showed that foundations recruited 471 new donors in 2008/09, helping to bring the total amount generated for grass-roots organisations to £56m during the year. Stephen Hammersley, chief executive of the Community Foundation Network, said the figure showed people were more willing to help their local communities in difficult times." Read more

For Charities, Fewer and Smaller Gifts
From the New York Times, January 17, 2010: "As the outpouring of donations to Haiti has made clear, the charitable impulse is alive and well. But it was somewhat in abeyance in 2009, as the recession limited people's ability to give and even caused some givers to become receivers." Read more

Endowments Put Priority on Rebuilding
From The Chronicle of Philanthropy, January 14, 2010: "Nearly two-thirds of charitable endowments and foundations report they are focused on rebuilding assets after suffering severe losses in the recession, according to a new survey of chief investment officers." Read more

A Flurry of Last-Minute Giving Lifted Charities' Holiday Appeals
From USA Today, January 11, 2010: "Envelopes are still being unsealed and checks processed, but early indications suggest that December brought mixed results for charity fund raising. Many groups reported significant drops that could force them to cut even deeper into the services they provide. But other charities did well this December; in fact, some organizations seem to have done better than they anticipated, thanks to an unusually large number of donors who waited to give until just before the clock turned to midnight on January 1." Read more

Looking Back: Giving in Difficult Times
Philanthropy Matters Magazine, December 2009: "The current recession has often been compared to prior economic downturns, from the Great Depression to the recessions of the early 1980s. But what was giving like during and after those downturns, and how does this recession measure up? Researchers from the Center on Philanthropy at Indiana University explored these topics for a recent issue of Giving USA Spotlight, published by Giving USA Foundation. The findings offer reasons for hope, reasons to moderate expectations, and a reminder that as bad as this recession is, it’s no Great Depression. " Read more

America's Wealthiest Donated $2.7-Billion in 2009
From the Chronicle of Philanthropy, December 31, 2009: "Despite the challenging year, the largest donation of 2009 was substantial: The Haas family, headed by 91-year-old John C. Haas, an heir to the Rohm & Haas Company fortune, gave $747-million to the William Penn Foundation, in Philadelphia, for programs to benefit the Philadelphia region. Mr. Haas' parents, Phoebe and Otto Haas, created the foundation in 1945. Including this donation, the foundation's assets stand at approximately $1.9-billion. It distributed $63-million in grants in 2008. The second-biggest gift was from the investment managers Stanley and Fiona Druckenmiller who provided $705-million to their Druckenmiller Foundation, in New York." Read more

In 2010, Expect Charitable Donors to Keep Giving Through Long-Term Pledges
From the Association of Healthcare Philanthropy, December 21, 2009: "In a sign of what to expect in 2010, businesses and individuals hit hardest by the economy’s slide have shifted charitable giving patterns to longer-term pledges and gift commitments rather than ceasing to give altogether, according to a study of benchmarking data and effective philanthropic fundraising techniques released today by the Association for Healthcare Philanthropy (AHP).'The fact that in this deep recession, donors are still givers and have not halted contributions signals a depth of relationship and commitment to the individual organizations which should be continually nurtured by health care fundraising operations,' said William C. McGinly, AHP’s president and CEO. 'The real message here for health care executives and boards is take care of your donors and support your fundraising staff and mix of fundraising activities to cope with the recession.'" Read more

Tough Times, Tough Choices; Donors Are Feeling Pinched—and So Are Charities; Ways to Make a Difference
From the Wall Street Journal, December 2, 2009: "A recent American Red Cross poll found that 20% of givers planned to reduce their contributions this year, though 62% were hoping to give about the same amount. Yet with unemployment at the highest level in a generation, basic needs are greater than they have been in recent memory. A nationwide survey of food banks in September found an average increase in demand of 30%, and even in places where more food was available, the gains weren't enough to offset the surging need. Just over half of all charities have seen donations fall this year, according to an informal poll by the Association of Fundraising Professionals, and another 27% are flat with a year ago. Now, at the beginning of the crucial fund-raising season between Thanksgiving and New Year's Day, when many charities raise more than half of their annual donations, many are working harder to reconnect with former donors and refining their messages to grab our attention."  Read more

The 25 Best Givers; With Money Tight, Top Philanthropists Insist on More Bang for the Buck
From Barron's, November 30, 2009: "The name of the game in philanthropy this year is to make your dollars go far -- very far. With the recession squeezing donors and charities alike, it's more important than ever to make sure your giving really makes a difference. Ideally, each dollar you give will transform itself into $3 or $4 of benefits for your chosen causes -- from improving local schools to easing world poverty. That's high-impact giving, and some philanthropists are raising it to a high form of art. The best of the best are ranked and profiled on the following pages. Read more

Quicker Rebound in Giving Seen
From The Philanthropy Journal, November 23, 2009: "If history repeats itself, charitable donations from households and individuals are not likely to reach their 2007 levels until at least three years after the end of the recession, measured in inflation-adjusted dollars, a new study says. Foundation grantmaking could take longer to regain pre-recession levels but could increase more quickly than it did after the 1973-75 recession, the study says, because of the recent creation of new foundations and the trend among individuals with assets over $20 million to endow a foundation through their estate plan. The study, prepared for the Giving USA Foundation by the Center on Philanthropy at Indiana University, was released in October just as the recession was showing signs of giving way to a recovery." Read more

Philanthropy Thrives, Even With Reduced Resources
From the New York Times, November 14, 2009: "The expectation in America is that people who do well give back to society. For the wealthy, it is one way to stave off charges of being greedy. And in the boom times, being seen as philanthropic seemed a social and political obligation. But just as the downturn left the wealthy (and the rest of us) reeling from personal portfolio losses, their foundations also suffered investment losses that have affected their capacity to give. The Foundation Center in New York said this month that philanthropic giving in 2009 could fall as much as 13 percent. This has left many charities, particularly small ones, scraping for funds....'I think some donors are in a state of panic, which leaves them frozen in place,' said Melissa Berman, president of Rockefeller Philanthropy Advisers. 'But others have a more philosophical temperament and have continued on a steady course.' This has meant that the wealthy have become more creative with their philanthropic dollars. She noted that aid to large, stable institutions had been cut in favor of smaller organizations that might be struggling to weather the downturn. The big winners have been food charities, she said, while small arts organizations have suffered the most." Read more

New Fame for the Everyday Donor
From the New York Times, November 11, 2009: "After years in the shadows, the everyday donor is emerging as philanthropy’s newest hero, the driver of a more down-to-earth approach to charity. Sure, Bill and Melinda Gates, Warren Buffett, Bono and other celebrity mega-donors still have their place, but now high-profile charities are homing in on smaller donations, while new charities are being organized around the principle of modest giving. 'This is one of those all-hands-on-deck moments where we absolutely need to engage everyone, whether they are able to give 50 cents or $50 million,' said David Saltzman, executive director of the Robin Hood Foundation, famous for annual benefits where billionaires routinely hand over $20 million." Read more

Charity Still Thriving Despite the Credit Crunch
From the Times (UK), November 10, 2009: "A new report on Britain’s largest charitable donations — those worth at least £1 million — says that philanthropists are increasingly giving their money to local community foundations where donors can see where their generosity is doing good. Despite the economic downturn the report reveals that charitable donations by wealthy individuals and corporations are still holding up relatively well. The difference, according to Coutts Million Pound Donors Report, is that more donors are giving away their money in installments and, in some cases, anonymously. With the rich not quite as rich as they used to be — the Sunday Times Rich List 2009 reported a 37 per cent fall in the collective wealth of the 1,000 richest people in the UK — big donations to charity are down on previous years. The total value of donations worth £1m or more fell by 13 per cent, from £1.618 billion in 2006-07 to £1.405 billion in 2007-08, while the number of donors making commitments at this level fell by only 6 per cent, says the report, by Coutts & Co in association with the Centre of Philanthropy at the University of Kent." Read more

Wall Street Journal: Philanthropy Report
From the Wall Street Journal, November 9, 2009: "If there ever was a time to get smarter about philanthropy, this is it. Donations are down, endowments have been decimated, and state and local governments are slashing their budgets. And the number of those who need help are rising rapidly. In that spirit, this report offers an assortment of ways all parties—donors, foundations and charities—are trying to do more in hard times. You'll read about individual donors, for instance, who are shutting private foundations and rolling the money into donor-advised funds. And about charities finding new opportunities in the downturn. And about philanthropies taking advantage of new public-private partnerships." Read more

Finding the Silk Purse; Some nonprofits have managed to find new opportunities in difficult economic times
From the Wall Street Journal, November 9, 2009 "Many nonprofit organizations have been in survival mode since the economy went sour and donations began shrinking. But some are doing more than just getting by—they're finding ways to take advantage of the situation. The real-estate crash, the disruption of business as usual, the clear need for greater generosity, the hunger for work in the construction industry and donors' reluctance to flaunt their wealth have all been seized on by various organizations as opportunities to do more for the people they serve. Here's a look at how some organizations have made the most of an economic downturn that has driven other groups out of business." Read more

Donations to Largest U.S. Charities Rose 1% in 2008
From the Chronicle of Philanthropy, October 29, 2009: "Donations to the 400 American charities that raise the most from private sources grew by 1 percent last year when adjusted for inflation, to $76.2-billion, according to a Chronicle survey. But that figure is expected to drop significantly in 2009. The country's biggest and most sophisticated fund-raising operations were not as badly hit by the recession as smaller charities. Giving USA's annual survey, which tracks gifts to groups of all sizes, found that overall charitable giving dropped by 5.7 percent in 2008. But the picture for big groups was still grim. For only the third year in the survey's 19-year history, the minimum amount to qualify for The Chronicle's list dropped, to $47.6-million from $51.5-million in 2007, adjusted for inflation." Read more [subscription required]

Beating the Recession by Seizing Opportunities to Expand
From the Chronicle of Philanthropy, October 15, 2009: "For the past decade, Jeremiah Program, a charity in Minneapolis, has provided services such as transitional housing and job-readiness training to help single mothers with young children break the cycle of generational poverty. It is the kind of organization one would expect to shrink in a down economy because competition for private money to finance human services has grown so intense. Instead, Jeremiah's board voted in February to create a national board and expand to more cities. Jeremiah's decision runs contrary to economic trends, but it is not alone. Several entrepreneurial, grass-roots charities are also bucking the tide and growing." Read more [subscription required]

Charities Are Cautiously Optimistic as Fund-Raising Season Begins
From The Chronicle of Philanthropy, October 1, 2009: “As the crucial end-of-year fund-raising season is about to start, charities hope that signs of the recession ending will help make it easier to bring in donations. ‘We anticipate year-end will be better than we've been seeing lately, but are under no illusion it will be where it was two or three years ago,’ says Jeff Lindauer, associate vice president for development at the Indiana University Foundation, in Bloomington. To prepare, fund raisers are weighing which tactics are likely to work best in the current economic environment. They also are trying to ensure that the decisions they make now lay the groundwork for future giving.” Read more [subscription required]

Give Options to Donors Waiting Until Next Year
From the NonProfit Times, September 21, 2009: “Kathleen Kane, executive vice president of development at City of Hope in Duarte, Calif., said she’s seen donors who want to give to the organization but are too shaken by the recent economic collapse to make a commitment...Kane explained that most donors are too spooked about the economy to even think about multi-year commitments, especially when donors are looking at significant decreases in their stock portfolios and real estate values. ‘They will maybe give you a gift this year from their income but they are not willing to look at their asset base and pledge that out during a period of time,’ she said.  One way to approach the shy donor base is to start talking about planned giving, according to Daphne Halpern, vice president of development at Monmouth Medical Center Foundation in Long Branch, N.J. Halpern said that donors are holding their money tightly while they are uncertain about the not-so-distant future.” Read more 

Charitable Giving in UK Hit by Downturn
From the BBC News, September 23, 2009: "The amount of money donated to good causes fell by 11% in the year to April as the downturn hit charities, a new survey suggests. Estimated total donations fell from £11.2bn in 2007-8 to £9.9bn. Although half of all adults in the UK donated to charitable causes in 2008-9, the average amount they gave fell by £1 a month to £10 per month. The figures came from the Charities Aid Foundation and the National Council for Voluntary Organisations. Medical research is the most popular sector for donations, the report said." Read more

New Endowment Rules Signal Caution for Charities
From the Chronicle of Philanthropy, September 17, 2009: "As a result of the market gyrations of the past year, nearly 15 percent of endowments have lost some of the principal that donors invested, according to the Urban Institute. Also affected by the downturn are quasi-endowments -- unrestricted funds designated by a board of directors to function like an endowment. They are resources that organizations may be tempted to liquidate in a crisis. Until recently this would have been illegal in most states. In the past three years, 43 states have revised their charitable-investment laws in accordance with a new Uniform Prudent Management of Institutional Funds Act -- promulgated by the Uniform Laws Commissioners, a group that seeks to keep state laws consistent -- which gives institutions more flexibility in dealing with fluctuations in the value of their endowments. Most states have adopted one or both of two key provisions.  The first one allows nonprofit groups to take 7 percent from the fund's value during a year in which the organization faces emergency conditions. That is a high percentage for groups to spend over any period of time and cannot be sustained indefinitely. Assuming a normal spending rate of 5 percent -- a level that researchers say will preserve the value of endowments over time -- the new 7-percent standard allows a 40-percent increase in spending withdrawals to cope with an economic crisis." Read more [subscription required]

Fund Raising Goes Global to Meet Growing Needs
From the Chronicle of Philanthropy, September 17, 2009: "International fund raising, which some charities have accelerated even as the recession pinches fund raising in the United States and elsewhere, is as varied as the organizations doing it. Some charities solicit pedestrians on the street for donations, while others run American-style fund-raising drives seeking multimillion-dollar gifts." Read more [subscription required]

Billion-Dollar Donors
From Forbes, August 24, 2009: “The most exclusive subset of the world's wealthy may be this one: those living philanthropists who have already given away $1 billion or more. For the first time ever, Forbes has put together a list of the world's billion-dollar donors.... Still even these mega-generous are a bit less generous now that the markets have fallen. That is partly explained by the fact that a good portion of these donations are given in the form of stocks, many of which have lost value. The wealthy also have more incentive to give during up markets as it is one way to get a tax deduction on hefty gains. In 2006, the year Buffett started his Gates donations, the U.S. recorded a record 22 gifts of at least $100 million, according to the Chronicle of Philanthropy's database. Since then, the number of those high-value gifts has fallen by a third. Giving USA, an annual survey that measures total giving, has recorded a 2% drop-off during the current recession. Buffett, who donates Berkshire Hathaway shares once a year, donated shares worth $1.25 billion in July, $500 million less than last year and 2007 and $350 million less than in 2006. ‘That should bounce back in the next year or so, much like giving did after the 1973 to 1975 downturn’, says Lenkowsky.”  Read more

Seeds of Recession Recovery Give New Life to some Charities' Capital Campaigns
From the Chronicle of Philanthropy, August 20, 2009: “Signs that an economic recovery may be on the horizon have pushed plans for ambitious fund-raising drives back on the table at charities around the country. And the news has given some cheer to fund raisers overseeing capital drives that have been hobbled by the recession. No one is expecting a quick financial turnaround for the country or for wealthy people, but charity officials say they are a bit more sanguine about the prospects of raising the millions — and even billions — of dollars they have promised for their capital campaigns.” Read more [subscription required]

American Generosity can Defy this Recession
From the Christian Science Monitor, August 19, 2009: "Ensuring a vibrant and thriving nonprofit community will be essential to weathering our economic storm and seeing us through a successful recovery. Unlike AIG or the auto giants, the not-for-profit community shouldn't expect a bailout. As first lady Michelle Obama recently said, government alone is not the answer. Help must come from each and every one of us. The good news is that not every organization has faced the same hardships during this crisis; some are even thriving through tough times. So as we work to protect and promote the innovation and support that nonprofits provide, there are a few key lessons and steps we must take to have a successful recovery." Read more

Why It's Smart to Be Optimistic
From BusinessWeek, August 13, 2009: “The case for rational optimism has two parts: First, recessions such as this one, painful as they may be, can set the stage for future growth. As economist Joseph A. Schumpeter wrote in 1942, ‘creative destruction’ shakes loose people from old, dying businesses and forces them to figure out new ways to be useful. Second, ingenuity is additive. Equipping one or two billion more of the world's people with higher education and better technology over the past couple decades has increased humanity's ability to solve hard problems. The next world-changing breakthrough may come from China, or India, or Eastern Europe.” Read more

Gates Foundation Endowment Climbs to $30.2B
From the Portland Business Journal, August 6, 2009: "The value of the Bill & Melinda Gates Foundation endowment climbed $2.7 billion during the last quarter, according to new figures posted on the foundation’s Web site. The endowment’s value now stands at $30.2 billion, as of June 30, 2009. The endowment’s value was listed at $27.5 billion as of April 1, 2009. For the year, the Gates Foundation’s endowment is down about 16 percent from June 30, 2008, when its value was reported as $35.9 billion. The world’s largest foundation also reported Wednesday that its employee head count had increased to 781, up from 760." Read more

Fundraisers Report Tough Times—Expect Some Improvement by Year End
From the Association of Fundraising Professionals, August 4, 2009: "Fundraisers are finding the current giving environment extremely challenging, but expect some improvement for the second half of 2009. A survey by the Center on Philanthropy at Indiana University reveals that fundraisers’ assessment of the current giving environment fell to its lowest level since 1998, when they first began to study nonprofit’s attitudes toward the present and future giving climates. In the latest survey, the Present Situation Index (PSI) is at 58.0, an 8.7 percent decrease from six months ago and a 28.9 percent decrease from one year ago. The PSI has averaged 82.1 over the history of the study...Fundraisers’ expectations for the coming six months are more optimistic than six months ago, but remain below the historical average for the study. The Expectations Index (EI) is at 72.8, a 10.2 percent increase from six months ago but a 13.2 percent decrease from a year ago. The overall PGI, which is an average of the current and future indexes, is at 65.4, up 0.9 percent from December 2008 but down 21 percent from this time last year. Expectations for improvement in the fundraising climate in the next six months are highest among religious, education and health organizations, and consultants. Public society benefit, environment/animal and international organizations, arts groups and human services organizations have the lowest expectations for the immediate future." Read more

Economy Low, 'Generosity High'
From USA Today, July 28, 2009: “More Americans became engaged in their communities last year as the economy weakened, a federal agency reported Tuesday. ‘There's a compassion boom going on,’ says Robert Grimm of the Corporation for National & Community Service, which oversees AmeriCorps, Senior Corps and other service programs. ‘Instead of people worrying about their own problems,’ he says, ‘they're thinking of others.’ The number of volunteers increased 2% from 60.8 million in 2007 to 61.8 million in 2008, according to the agency's 2009 Volunteering In America report, based on annual Census Bureau surveys. Among young adults (16 to 24), the number of volunteers increased 5.7%. On average, 26% of Americans continued to donate their time.” Read more

5 Tips on How to Stretch Your Charitable Dollars
From the Associated Press, July 24, 2009: “As the recession lingers, strapped charitable donors are still coming to terms with their reduced ability to give. It's been a difficult time for charities and those who support them. Charitable giving by individuals was down an inflation-adjusted 6 percent last year, according to the Glenview, Ill.-based Giving USA Foundation, and remains under pressure from the weak economy....The good news: There are ways to stretch charitable dollars to make sure your contributions have more impact.” Read more

Economy Continues to Squeeze Charities, New GuideStar Survey Finds
From the Chronicle of Philanthropy, July 23, 2009: “Just over half of charities saw a drop in donations between March and May of this year, the same portion as reported a decline between October and February, according to a survey by the nonprofit watchdog group Guidestar. Meanwhile, 36 percent of charities have cut their budgets this year, while the same portion said their budgets have increased. Bob Ottenhoff, president of Guidestar, said he was surprised by the findings. ‘We thought we’d see a much bigger dip,’ he said. ‘Either that means they’ve found some ways to get through or the decrease has yet to come.’”  Read more

Laying Off Charity's Rain Makers - Even Fund Raisers Face Dismissals as Recession's Grip Tightens
From the Chronicle of Philanthropy, July 23, 2009: “At colleges, hospitals, and other large nonprofit groups, chief development officers are increasingly looking to pare expenses through layoffs and other approaches, such as salary and hiring freezes, furloughs, and staff reorganizations.... Fund-raising consultants uniformly warn charities to avoid making cuts in the development office, even if other departments are asked to reduce the number of employees. 'Across-the-board cuts are typically not very strategic,' says John J. Glier, chief executive of Grenzebach Glier and Associates, a fund-raising consulting firm in Chicago. 'You're pruning with an ax and not a scalpel.' Instead, he says, groups should make a close examination of fund-raising programs and keep in mind that cuts that 'look logical on the surface' may have undesired consequences." Read more [subscription required]

Downturn Fails to Dampen Philanthropy
From the Daily Telegraph (London), July 13, 2009: “A survey by Barclays Wealth of 500 wealthy individuals in the UK and US revealed that around 75% had not reduced their contributions to charity, while more than one in four had increased their giving in the last 18 months. Now that governments are overburdened with debt, the rich felt it more important than ever that wealthy individuals did their bit for charity, the report said. When asked where they would make cuts if the downturn continued, respondents said they would be more likely to stint on luxury goods, holidays and eating out than curb their donations to charity.” Read more 

7 in 10 Nonprofit Groups Make Changes in Their Investment Mixes
From the Chronicle of Philanthropy, July 8, 2009: "Seventy-one percent of American nonprofit organizations in a new survey say that they are making changes in how they allocate their invested assets, in the wake of staggering losses brought on by the recession and market volatility, according to SEI’s Institutional Group, an investment manager with headquarters in Oaks. Pa. The pool of respondents reported taking big hits in their investments: Eight-one percent of the organizations surveyed said their invested assets had declined by at least 21 percent last year. Such losses have triggered some hard choices, according to the poll. Forty-five percent of respondents said the recession has forced them to decide between cutting staff positions and trimming programs." Read more

Corporate Donors see Tighter Belts in the Months Ahead
From the Chronicle of Philanthropy, July 2, 2009: "As the economic recession continues, many of America's largest corporations plan to decrease their giving or keep it flat in 2009, with many deciding to stop supporting charitable causes that are not related to their businesses, according to a new Chronicle survey. Of the 96 companies that provided predictions about how much they would donate in cash and products this year, 51 said the amount would stay roughly the same as in 2008, 15 expected it to decline, and five said it would grow. The survey found that despite the gloomy outlook, cash giving among big companies grew in 2008. Of the 71 companies that provided data for 2007 and 2008, cash donations rose from $3.6-billion to $3.9-billion, a 9-percent increase — or about 5 percent when adjusted for inflation." Read more

Big Gifts in Tough Times
From Philanthropy Matters Magazine, June 2009: “In 2008, the number of million-dollar-plus gifts from individuals did plunge by 33 percent in the last half of 2008 compared to the same period in 2007—and by 40 percent in the last quarter alone. But for all of 2008 the total number of gifts of $1 million or more—including those from foundations, corporations, and bequests—increased 3.6 percent from the previous year, according to findings from the Center on Philanthropy’s Million Dollar List™.” Read more

Nonprofit Expert sees Longer-than-usual Downturn
From USA Today (AP), June 26, 2009:  “Charities tightening their belts because of the recession should gird themselves for a longer-than-usual downturn, the editor of Nonprofit Quarterly magazine said Friday. Ruth McCambridge said the asset bases of foundations that provide much of the charitable giving in the country have fallen drastically, and grants from those groups have declined accordingly. 'And many foundations are planning to give less next year than this year,' said McCambridge, who spent 35 years working at nonprofits before taking the helm of the quarterly in 1999. Still, there are many creative ways 'to help us get through this period,' she told an audience at the Clinton School for Public Service.” Read more

U.S. Foundations Lost 26% in 2008 as Stocks Slid, Study Shows
From Bloomberg News, June 25, 2009: “U.S. foundations lost an average of 26 percent in 2008, more than in any year since their returns have been tracked, according to a survey published today. Foundations with $10 million to $50 million in assets fared the worst among those surveyed, dropping 29 percent on average, according to the report by the Commonfund Institute in Wilton, Connecticut. The smallest drop, of 23 percent, was among foundations with $501 million to $1 billion. All classes of non-profits, including endowments and charities, were hurt last year by the worst financial crisis since the Great Depression, said Bill Jarvis, managing director of the institute. His group is the research arm of Commonfund, which manages about $24 billion for nonprofit institutions.”  Read more

Giving Takes a Beating
From the Chronicle of Philanthropy, June 18, 2009: “Donations to nearly every type of charity faltered in 2008, as contributions declined by 5.7 percent last year after inflation — the steepest decline Giving USA has reported since it started estimating donations in 1956. And the situation is growing even worse this year, according to The Chronicle's interviews with fund raisers from 65 institutions. Forty of the fund raisers said giving was on the decline this year, and 21 said donations had decreased by more than 10 percent.” Read more

Changing Demographics Could Be More of a Challenge to Charities than the Recession
From the Chronicle of Philanthropy, June 14, 2009: "Fund raisers might want to be more concerned about shifting demographics than economic swings, Judith E. Nichols, deputy director for external affairs at the Brooklyn Public Library, told fund raisers on Friday. While charitable giving historically tends to be affected less significantly than other sectors of the economy either by recessions or by economic booms, it has undergone tremendous changes in response to new generations and their changing attitudes toward philanthropy...For example, she noted, by 1990 the average American donor was giving half of what the average donor gave in the 1920s. And since 1995, the wealthiest Americans have reduced the amounts they give to charity when measured either as a percentage of their incomes, or as a percentage of their estates upon death." Read more

Majority of U.S. Companies Increased Giving in 2008, Survey Finds
From Philanthropy News Digest, June 4, 2009: “Despite challenging economic conditions, more than half of U.S. companies increased their philanthropy in 2008, a new survey from the Committee Encouraging Corporate Philanthropy finds. The annual survey of nearly 140 U.S. companies found that although 68 percent of respondents reported a year-over-year decline in corporate profits, 53 percent increased their giving — down slightly from the 56 percent that increased giving from 2006 to 2007. Within this group, 27 percent of companies increased their year-over-year giving by more than 10 percent, with non-cash giving growing the most (nearly 35 percent). For both groups — companies that increased giving and those that scaled back — giving levels changed only nominally year-over-year.” Read more

Philanthropists Not Cutting Back
From the Third Sector (UK), June 2, 2009: “The vast majority of philanthropists plan to maintain or increase their giving during the recession, according to a poll by Coutts, the private banking arm of the Royal Bank of Scotland. The survey of 100 philanthropists at a forum held by the bank in April found that 42 per cent planned to increase their charitable giving, and 45 per cent said they would maintain the same level of donations.” Read more [free subscription required]

Smart Giving in a Troubled Climate

From the New York Times, May 21, 2009: “In December, Joe and Nancy Briggs sat down in their home on Lake Canandaigua in western New York to take a hard look at their donations to charity. Their investments, like those of almost everyone else, were shrinking just as the pile of requests from charities was expanding. ‘When things go down, no matter how much you have, you think you are poorer and therefore your tendency is to withdraw completely,’ said Mr. Briggs, a retired legal-publishing executive. ‘The problem is that this is the time when you can do the most good, when you really need to give.’ So the Briggses changed their giving priorities, at least until the economy recovers.” Read more

Why Stewardship is Critical Now, and Always
From the Chronicle of Higher Education, May 8, 2009: "One of my favorite things to keep in mind as I go about my interactions with donors is something I heard very early on in my development career. To this day it's something I try to share with my colleagues in fund raising. You may have heard it before, but it's worth repeating: 'Your best prospects are your current donors.' I take that literally to mean that every donor's gift is the lead-up to the next one, and if we act as good stewards toward our donors, the next gift should be even larger." Read more

Improving Nonprofit Decision Making amid Economic Crisis
From the Nonprofit Quarterly, April 2009: "When your organization has faced serious and urgent questions in the past, how has it responded? Do these practices serve you in the new economic environment? Right now your leadership may require a combination of learning new skills and approaches and also unlearning previous behavior. Nonprofits may well come through this downturn with changes not only to their budgets and programs but also to organizational culture." Read more

Giving by Richest Britons Up 8% in 2008
From Professional Fundraiser, April 28, 2009: “The UK’s philanthropists have increased their charitable giving by 8 percent in the last year despite seeing their wealth fall by more than a third, according to the Sunday Times Rich List. The findings reveal that the collective wealth of the 1,000 richest people in the UK has fallen by a whopping £155bn to £258bn, yet the amount donated or pledged to charity rose by £216m to £2.82bn. The most generous giver for the second year running is Christopher Cooper-Hohn, who by donating £462m gave more than five times his personal fortune to his hedge fund charity the Children’s Investment Fund Foundation (CIFF). Lord Ashcroft is listed second having pledged to give away 80 per cent of his £1.1bn fortune when he dies.” Read more

Fundraising in Tough Times: How to Survive in a Challenging Economy

52% of Donors Plan no Decrease in Giving in 2009
From the Chronicle of Philanthropy, March 13, 2009: “Their investment portfolios may be slumping and their jobs less secure, but a majority of Americans who give to charity still plan to donate as much this year as they have in the past, according to a new survey. More than 52 percent of donors said their gifts would be on par with 2008, while just 17.5 percent planned to give less. But many Americans are still undecided about their plans for giving this year: Thirty percent of respondents said it was too soon for them to know how much they would give.” Read more

A Year of Big Bequests: Richest Donors gave $15.5-billion in 2008
From the Chronicle of Philanthropy, January 29, 2009: "Even in a year in which the stock market swallowed up nearly $7-trillion in assets, America's wealthiest donors promised greater amounts to charitable organizations than in 2007: $15.5-billion in 2008, compared with $7.3-billion the previous year, according to The Chronicle's annual ranking of the 50 most generous philanthropists. But most gifts from the donors on the list came from decisions made long before the market plunge that began in September.” Read more

Bracing for Lean Times Ahead
From the New York Times, November 10, 2008: “Given the financial tremors that have obliterated wealth and driven the economy deep into the doldrums, will charitable giving, which reached record levels in the United States over the past decade, show sharp declines? …Patrick M. Rooney, interim executive director of the Center on Philanthropy at Indiana University, said the most reliable indicator of individual giving was Standard & Poor’s 500 stock index, with a 100-point jump translating into an additional $1.5 billion of philanthropy from people who report donations on tax forms. ‘It works just the same way on the downside,’ he said. Using that rule of thumb and the price of the index on Nov. 6, such individual giving would drop this year by about $8.7 billion from an estimated $187 billion, according to Mr. Rooney. That’s far less than financial markets have fallen.” Read more

Financial Crisis Creating 'Perfect Storm' for Charity Organizations
From CBC News, November 10, 2008: "Non-profit organizations in Canada are caught in a squeeze from the current financial crisis, with a decline in charitable donations as demand rises for social services...A recent report by Statistics Canada showed that in 2007, the number of donors in Canada dropped by 0.9 per cent to 5.7 million tax filers. However, the total donations in Canada rose 1.4 per cent, compared with 2006, to $8.6 billion." Read more

From Reuters, November 4, 2008: “Requests for help from top U.S. corporate charities has risen sharply, but spending in 2009 by some of America's largest foundations is likely to be flat as the companies behind them weather the global financial crisis. Spending by the philanthropic arms of Wells Fargo, Bank of America and General Electric has risen in recent years, but all three foundations told Reuters their 2009 giving was likely to hold steady next year.” Read more

Despite Downturn, There's Hope For U.S. Charitable Giving
From Boston College's Center on Wealth and Philanthropy, October 10, 2008: “Despite the turmoil on Wall Street and the ongoing economic turbulence, charitable giving levels may not be affected as much or for as long as some may fear, according to researchers at Boston College's Center on Wealth and Philanthropy. In a speech before a gathering of U.S. fundraising professionals at BC, John J. Havens, a leading authority on empirical patterns of wealth, said that there could be up to a year before the impact of the current crisis is seen in charitable giving levels.”  Read more

Giving During Recessions and Economic Slowdowns
From Giving USA Foundation, September 2008: "This issue of Giving USA Spotlight looks at recessions and economic slowdowns and their impact on charitable giving in order to help nonprofit organizations anticipate what MIGHT occur in 2008–2009 and plan accordingly." Read more

Resilient Philanthropy, how Various Economic Scenarios affect giving in the United States
From the Association of Fundraising Professionals, September/October, 2008: "Philanthropy remains strong and resilient during declining economic periods. While it is clear that a strong stock market provides donors with a greater ease and sense of confidence in making gifts to nonprofit organizations, the opposite is not true. Down markets do not always foretell decreased philanthropy." Read more

IRA Rollover Extended
From the Association of Fundraising Professionals, October 3, 2008: “President Bush [has] signed the $700 billion economic bailout bill (H.R. 1424, The Financial Rescue Package), which includes a two-year extension of the IRA Rollover provision…The provision exempts from taxable income any funds transferred (“rolled over”) from an Individual Retirement Account (IRA) to a charitable organization.” Read more

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REPORTS

The Coutts Million Pound Donor Report
November 2009
Published by the University of Kent’s Centre for Philanthropy, Humanitarianism and Social Justice, this is “the first study to focus exclusively on UK charitable donations worth £1 million or more. It aims to capture and track trends in major giving, including the size of donations above a million pounds, the type of donors making gifts of this size and the causes that are benefiting.” Click here to read more about the report and download a free copy.

Foundations' Year-end Outlook for Giving and the Sector
November 2009
"Foundation giving will likely decline by more than 10 percent in 2009 according to survey findings released by the Foundation Center. Based on responses of close to 600 foundations, Foundations' Year-end Outlook for Giving and the Sector also finds that continued reductions are expected in 2010. However, more than three-quarters expect that the field of philanthropy will become more strategic as a result of having weathered the crisis." Click here to read the press release and download a free copy. 

Charities Aid Foundation (CAF) - UK Giving 2009
September 2009
This survey gives an overview of individual charitable giving in the UK from 2008-2009. Provides data on how much is given, and who the donors are. To download a copy of this report, please visit the CAF website.

Giving in the Recession: UK Report
August 2009
“The UK-based Institute for Philanthropy has released a report entitled ‘Giving in the Recession’ which details ways in which donors can fund strategically during the Global Financial Crisis and the UK recession. The report includes six case studies on how a range of philanthropic individuals and organisations are responding to the economic crisis through strategies including collaborative funding, spending down, social investment, and leadership roles.” Click here to download this report.”

Johns Hopkins Center for Civil Society Studies - Impact of the 2007-09 Economic Recession on Nonprofit Organizations
June 2009
“Eighty percent of nonprofit organizations are experiencing fiscal stress according to a survey released today by Johns Hopkins University, and close to 40 percent of them reported that this stress was 'severe' or 'very severe.' Theaters and orchestras were particularly hard hit, with nearly 75 percent of the former and half of the latter reporting 'severe' or 'very severe' stress. Contributing to this stress has been a perfect storm of impacts including declining revenues (51 percent of organizations); increased costs, particularly for health benefits; declining endowments; and decreased cash flow as a result of restricted credit and government payment delays.” Click here to download this report.

Special Bulletin on Federal Stimulus Funds for Nonprofits from the Center on Philanthropy and Giving USA
May 2009
"This Bulletin provides timely information on how charitable and philanthropic organizations can apply for funding through the American Recovery and Reinvestment Act of 2009, also known as the stimulus package. The passage of the Act offers nonprofit organizations opportunities to acquire desperately needed funding relief to sustain current programs and to access novel forms of funding to implement new and innovative programs. There is a sense of urgency, however, as deadlines for applying for grants under the Act are approaching." Click here to download this bulletin.

Foundation Center – Key Facts on Community Foundations
May 2009
“Community foundations account for 1 percent of all U.S. grantmaking foundations but about 10 percent of giving. Despite the worsening economic climate, community foundations raised their giving by an estimated 6.7 percent in 2008 to a record $4.6 billion. (Adjusted for inflation, giving rose 2.7 percent.) This increase surpassed the rate of growth reported by independent and corporate foundations and, for the first time on record, community foundations gave more than corporate foundations. Community foundations have benefited in recent years from strong increases in the value of their existing assets and from new gifts and bequests from donors.” Click here to download this report.

Council on Foundations - Foundations Respond to the Needs of Families Even as Their Assets Have Declined
May 2009
"Foundation endowments, which started the year at $682 billion, fell precipitously in 2008. Not unexpectedly, a majority of foundations (62 percent) reported they will reduce their grantmaking in 2009. However, the vast majority (82 percent) of foundations providing assistance to those adversely affected by the economic downturn will continue to do so, either at the same or higher levels, or have added it as a new area." Click here to read a summary of this report.

The Hudson Institute -  Index of Global Philanthropy 2009
April 2009
Every year, the Hudson Institute’s Center for Global Prosperity publishes the Index of Global Philanthropy. This year’s index find that despite the global recession, charitable giving to developing nations by individuals, foundations, corporations, and other organizations is not expected to decline significantly in 2009. Click here to read more about the report.

Foundation Center - 2009 Foundation Growth and Giving Estimates
March 2009
“Although foundation giving grew modestly in 2008, it did not grow as much as had been expected due to the extreme nature of the current economic downturn."  To download a free copy of the 2009 Foundation Growth and Giving Estimates: Current Outlook, click here.

AFP 2008 State of Fundraising Survey
March 2009
"AFP's eighth annual State of Fundraising Survey asked charities to compare their fundraising totals in 2008 to their figures in 2007. Overall, just 46 percent of organizations raised more funds in 2008, a new low in the eight-year history of the survey." Click here to read a summary of the findings.

Bank of America High-Net Worth Philanthropy Study

Conducted for Bank of America by The Center on Philanthropy, this new study identifies key trends and provides insights into the motivations and attitudes of wealthy donors. Click here to read more about the report and download a free copy.

Charity Commission - Economic Survey of Charities (UK)

Conducted in February of 2009, this survey looks at the overall impact of the economic downturn on charities in England and Wales. Click here to download the survey.

GuideStar - Charitable Organizations and the Economy - Nonprofit Survey
October 2008
GuideStar has published a survey of over 2,700 nonprofit groups about their fundraising during the first nine months of 2008 as compared to the same period in 2007. “Some 38 percent reported increased contributions, 25 percent said contribution levels had remained about the same, 35 percent reported a decrease, and 2 percent did not know.”  Read more

Foundation Center - Past Economic Downturns and the Outlook for Foundation Giving

This short Research Advisory from the Foundation Center provides historical context through an examination of foundation giving trends in prior recessionary periods and times of economic distress. Read more

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WEB SITES

Association of Fundraising Professionals (AFP)
A Survival Kit for Fundraising in a Bad Economy – articles and tips for nonprofits.

Chronicle of Philanthropy
How Charities Cope With a Troubled Economy - recent stories, live discussions, and statistics about how charities deal with turbulent times.

Donors Forum
Coping with the Economic Crisis – a continually updated list of resources for funders and nonprofits.

Foundation Center
Focus on the Economic Crisis - A web-based clearinghouse of articles, commentary, research advisories, and news, including interactive maps linked to data on U.S. foundations’ giving in response to the economic downturn.