The 2010 Economic Forecast For Nonprofits And Foundations
A recent 2009 survey from the Foundation Center determined nonprofit giving will likely decline by more than 10 percent since 2008
. The survey, the result of interviewing and obtaining the responses of 600 foundations, also said that continued reductions are expected throughout 2010.
This year has suffered declines in overall consumer demand and our country's highest unemployment figures in a quarter century. It is therefore no surprise that the outlook for the nonprofit community has been impacted by the recession. The experts are saying that the field of philanthropy will become more strategic as a result of the economic crisis.
U.S. foundation giving suffered an estimated 22 percent drop in foundation assets in 2008. Earlier in the year the Foundation Center estimated that 2009 giving by the nation's more than 75,000 grant making foundations would "decrease by around eight to 13 percent. At this time, it seems as if it is likely the decline will be even more.
Todays economic crisis has forced nonprofits to adjust their operating costs. More than two-thirds of respondents to the September 2009 said they have in some way reduced operating expenses since the beginning of the economic crisis, even those that still have endowments.
A number of nonprofits are seeking to preserve the value of their endowments so that they won't permanently diminish their grant making capacity. While others have decided that they will be smaller institutions going forward and are making necessary staffing and expense adjustments.
What is entailed in the cut backs? Many foundations have reduced operating expenses since the onset of the economic crisis. They have reduced staff travel and salaries. Two-thirds of the respondents that cut expenses reported reducing staff travel budgets or limiting staff to attend conferences. One-third indicated that they had also reduced staff training and professional development opportunities.
More respondents expect that their giving will be lower in 2010 (26 percent) than higher (17 percent). Foundations giving over $10 million are more likely than smaller foundations to reduce their giving further next year. While asset averaging generally limits the impact of modest economic fluctuations on annual giving, the extreme 2008 asset losses will not be balanced out by 2007 asset growth and the 2009 turnaround.
The impact of the economic crisis on foundations has been twofold. There are expectations among grant makers that the field of philanthropy will become more strategic as a result of having weathered the economic crisis. overall the impact of the crisis on their own foundations have forced them to engage in strategic planning and more focused use of the foundation's capabilities and being more focused and disciplined. Long-term changes cited by survey respondents ranged from governance to investments to grantee relations.
There are people who believe that the nonprofit sector will emerge stronger but agree that ultimately there will be fewer organizations.
The 2010 Foundation Giving Forecast Survey will be conducted in January 2010, with results released in the March 2010 edition of Foundation Growth and Giving Estimates.
The annual Foundation Giving Forecast Survey and made it available to approximately 5,000 large and mid-size U.S. community, independent, and corporate foundations.
Source: Foundation Center, 2009 http://www.foundationcenter.org/gainknowledge/research/pdf/researchadvisory_economy_200911.pdf
by: Kristin Gabriel
How To Reaffirm Your Jv Commitment Cheap Costume Jewelry Necklaces Can Give Enhancement To A Woman's Display Of Perfect Elegance Build Your Business With Your Expertise: 5 Reasons To Create Info Products Find a Proven Home Based Business How To Make A Social Media/networking Plan For A Home Based Business 3 Secret SEO Tips for Women Owned Small Business Sites Stay At Home Business Opportunities- Points To Consider Top Five Interview Questions And How To Answer Them Joomla! Helps Business Connect On The Web Start A Mail Order Business: What You Need To Know 3 Essential Steps To Build A Successful Online Business Business goals for 2010 When Good Acting is Bad for the Business