PHILANTHROPY AND THE ECONOMY

A wealth of information exists for nonprofit organizations as they take on the challenge of the turbulent economy. We have compiled articles, reports, and Web sites that contain stories, advice, tools, and more information to assist you in any difficult decisions you may be facing. We also invite you to discuss your situation with your GG+A consultant for counsel that is tailored to your organization.

GG+A Resources | Articles | Reports | Web sites | More Resources

GG+A RESOURCES

Implications of the Economy on Development Practices: Adjusting Long-Term Strategy
Presentation given by GG+A President and CEO John J. Glier at the American Bar Association Law School Development Conference, June 2, 2010. Download the presentation here.

GG+A Quarterly Review, Spring 2010
This issue looks at how nonprofit organizations are managing and building their endowments through the economic recovery. Download the full issue here.

The Role of the Trustee in Trying Times
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.

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ARTICLES

Great Recession Continues to Hurt Nonprofit Sector, New Survey Finds
Press Release, August 16, 2010: "GuideStar USA, Inc. -- the leading source of nonprofit information -- today announced the results of its first economic survey of public charity and private foundations in 2010, which show that the nonprofit sector continued to take a beating in the wake of one of the nation's worst economic downturns. About 40 percent of respondents have seen a further decline in contributions in the first five months of 2010 compared to the first five months of 2009. At the same time, a majority (63 percent) have seen an increase in demand for their services." Read more

Pledge to Give Away Half Gains Billionaire Adherents
From the New York Times, August 4, 2010: "More than three dozen billionaires, including well-known philanthropists like David Rockefeller and Mayor Michael R. Bloomberg of New York and less familiar big donors like Lorry I. Lokey, founder of Business Wire, have promised at least half of their fortunes to charity, joining a program that Bill and Melinda Gates and Warren Buffett started in June to encourage other wealthy people to give." Read more

Fidelity Study looks at Advice and Charitable Giving
From the Boston Globe, July 21, 2010: "Some financial advisors think their clients are likely to increase their charitable giving in order to offset expected tax hikes, according to a new report from the Fidelity Charitable Gift Fund. The fund's study gathered input from more than 500 financial advisors on their approaches to giving advice about charitable planning, a Fidelity press release said." Read more

Charities Can Expect More Money to Flow From Donor-Advised Funds
From the Chronicle of Philanthropy, July 11, 2010: "The amount of money held by donor-advised funds is growing fast, even amid the challenges caused by the volatile stock market and the large sums donors take out of the accounts to give to nonprofit groups. Over the five-year period ending in 2009, The Chronicle study found that assets held in donor-advised funds at 64 organizations grew from $13.48-billion to $16.86-billion, adjusted for inflation." Read more

Wealthy Are Making Bigger Gifts to Charitable Causes, Chronicle Tally Shows
From the Chronicle of Philanthropy, July 1, 2010: "America’s wealthiest donors are making far bigger gifts to charitable organizations in 2010 than they did a year ago—but far fewer of them are giving $1-million or more to charitable causes, a Chronicle of Philanthropy analysis has found. The continued effects of the turbulent economy can be seen in the decrease in the number of gifts of $1-million or more announced in the first six months of this year. At least 181 gifts of that size have been awarded this year, compared with 250 such donations in the first six months of 2009." Read more

Fundraisers Expect Largest Gains in Major Gifts, Online Giving in 2010
From the Association of Fundraising Professionals, June 22, 2010: "Nonprofits expect to see the largest fundraising gains in 2010 in the area of major gifts/planned giving, as well as online giving/social media. AFP's Quick Poll website survey, an online poll that received 1,100 responses between April and June 2010, asked people what fundraising technique or type they believe will experience the largest growth for their organization in 2010. Twenty-eight percent of respondents said the largest growth would come in the area of major gifts and planned giving. Another 28 percent said online giving/social media would see the most growth." Read more

Americans Didn’t Pull Back on Their Giving Last Year, Report Finds
From the Chronicle of Philanthropy, June 17, 2010: "The economy struck another blow to charitable donations last year, causing contributions from foundations, corporations, and individuals to decline by 3.2 percent, according to Giving USA...But individuals, who make 75 percent of all charitable contributions, held steady in their giving, providing more than $227-billion, the same sum they contributed in 2008, according to researchers at Indiana University’s Center on Philanthropy, who compile Giving USA." Read more

To order your copy of Giving USA 2010: The Annual Report on Philanthropy for the Year 2009, click here. Clients of the firm may contact us to receive a 15% discount.

Number of Volunteers has Grown Despite Recession, study says
From the Washington Post, June 15, 2010: "The number of volunteers increased last year despite the recession, the biggest one-year jump since 2003, according to a study released Tuesday. The volunteer rate has been rising nationally for years, driven by factors including decades of presidential calls to action and greater emphasis on youth involvement through schools -- but the increase in the midst of a punishing recession surprised some experts." Read more

Donations in 2010’s First Quarter Show Healthy Signs for Charities
From the Chronicle of Philanthropy, May 16, 2010: "Donations to the nation’s biggest charities are growing rapidly in the first quarter of 2010, compared with the same time in 2009, a sign that many nonprofit groups are making a strong recovery from the fund-raising troubles they suffered last year, according to a new Chronicle survey." Read more [subscription required]

Index of Global Philanthropy Shows Resilience of Philanthropy & Remittances to Developing World Even While Private Capital Drops
From the Hudson Insitute, May 12, 2010: "Despite the global recession, private giving and remittances are helping developing countries weather the economic storm, according to the new 2010 Index of Global Philanthropy and Remittances published by Hudson Institute's Center for Global Prosperity (CGP)." Read more

Big Charity Chalks Up Record Fund-Raising Returns
From the Chronicle of Philanthropy, May 5, 2010: "The economy's improvement is finally making itself felt in philanthropy, as one of the nation's biggest charities on Wednesday reported an unprecedented increase in donations made in recent months. The Fidelity Charitable Gift Fund, the third largest organization on The Chronicle's Philanthropy 400 survey of the nation's most successful fund-raising organizations, reported that contributions rose to $270-million in the first quarter of this year—up 109 percent over the same period in 2009." Read more

Fundraisers Tweak their Approach for Tough Times
From USA Today, April 13, 2010: "Across the country, fundraisers are intensifying efforts to make solicitations more personal and fruitful. Such a back-to-basics approach may help many charities navigate through uncertain economic times, says Michael Nilsen, a spokesman for the Association of Fundraising Professionals, which represents more than 30,000 fundraisers. 'That means ensuring that donors who are the most loyal continue to give, because this generates the most revenue with the least cost,' he says." Read more

Giving Took A Hit, But Jobs Coming Back
From the NonProfit Times, April 13, 2010: "Just 43 percent of charities raised more money in 2009 than in 2008, marking it the worst year for charitable fundraising in a decade, according to the Association of Fundraising Professionals (AFP) 2009 State of Fundraising Survey, released at AFP’s 47th International Conference on Fundraising in Baltimore, Md. But according to AFP, the organization’s job board postings have returned to levels not seen since November 2007." Read more

Recession May Alter Priorities, but Real Philanthropists still Give Freely
From Business Report (South Africa), April 8, 2010: "The slowdown in philanthropic donations has hit South Africa's non-profit sector as some foreign funding sources have dried up. But anecdotal evidence suggests that those South Africans who are in the habit of giving are bending over backwards to maintain the size of their donations to the needy - even though corporate giving has slowed down, and the middle and lower classes are under pressure." Read more

Back-to-Basics Approach Helps Charities Weather the Bad Economy
From the Chronicle of Philanthropy, April 4, 2010: "Across the country, many other fund raisers are intensifying their efforts to make solicitations more personal and taking other steps to focus on appeals that yield the best results. Such a back-to-basics approach will help many charities navigate through a time when money is tight and economic returns are uncertain." Read more [subscription required]

Gift Aid Relief Extended Throughout the EU
From the Financial Times, March, 25 2010: "A move to extend gift aid tax relief for charitable donations throughout the European Union was yesterday welcomed as an easing of the red tape facing philanthropists in Britain making gifts to charities based in other member states." Read more [free registration required]

America's Nonprofits Brace for Tough 2010
PR Newswire, March 22, 2010: "America's nonprofits expect that 2010 will be financially more difficult or as difficult as 2009, according to a survey released today by Nonprofit Finance Fund (NFF). The survey of more than 1,300 nonprofit leaders in markets nationwide also found strong evidence of the dramatic and creative steps that organizations are taking in order to maintain -- and even expand -- service delivery to meet increased demand during this time of continued economic uncertainty." Read more

American Charities Raise Nearly $1 Billion for Haiti
From the Associated Press, March 17, 2010: "Following Haiti's devastating earthquake, Americans opened their hearts and picked up their cell phones. A tally by The Chronicle of Philanthropy finds that in the nine weeks following the magnitude-7.0 quake that leveled much of Port-au-Prince and the surrounding areas on Jan. 12, American charities raised nearly $980 million from contributions to support relief efforts in the beleaguered Caribbean nation." Read more

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

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REPORTS

Giving USA 2010 – Charitable Giving for the Year 2009
June 2010
For more than 50 years, the state of American charitable giving has been chronicled in this authoritative survey by the Giving USA Foundation. Replete with data tables and trend lines, Giving USA provides a comprehensive look at who gives and where. The most recent report found that, despite the worst economic climate since the Great Depression, charitable giving exceeded $303.75 billion in 2009. Click here to purchase the full report or download a free copy of the executive summary. Clients of the firm may contact us to receive a 15% discount.

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.

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.

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.