The economy is the top news story on just about every station, every day. I’ve heard from several nonprofit staff members (current or former) who are experiencing the impact the economy is having on their work.
Needless to say, it can be really tough to go through these difficult times. After all who wants to see a worthy mission suffer? And on a personal level, who wants to be laid off or be forced to let employees go?
There are still many reasons for nonprofits and those working for them to have hope. Here are some resources to encourage you:
The Denver Foundation advocates planning ahead and the importance of self-reflection, contingencies, and broad thinking:
Even though the current economic crisis seems huge and immediate, nonprofit organizations can think in the long term about ways to position themselves, react to changing economic conditions, and have the broadest input possible from the constituencies they serve.
Michael Kaiser, president of the John F. Kennedy Center for the Performing Arts, offered a free consulting program for any troubled arts organizations in the country. As reported in the Wall Street Journal article: Arts Organizations on the Brink Are Turning to Him for Advice
The economic stimulus initiatives may help nonprofits. Don Griesmann lists 24 Economic Stimulus Programs for Nonprofits.
The National Council of Nonprofits has issued two special reports on the new American Recovery and Reinvestment Act (AKA the stimulus act) and what it means for nonprofits.
Katya Andresen says “In situations like this, some people panic. Others get inventive. Let’s all pledge here and now to stay in the latter category.” in 5 Keys to Pulling out of the Economic Nosedive
In 2008 the Gates Foundation gave out $3.3 billion. This year they are increasing their awards to $3.8 billion. Reflections on this and other news from onPhilanthropy: In Tough Times, It’s Time to Step Up.
Jon Biedermann, Vice President at DonorPerfect shared his thoughts about success during a recession on A Small Change blog.
For more reactions about the economy (or any other topic of importance to nonprofits) try searching using the Cause Blogger Searche Engine. It searches 59 (and counting) nonprofit/cause related blogs.
February 27th, 2009 at 10:59 am
What impact will the changes in tax deductions for charitable giving for those making over $250,000 have on non-profits? As I understand it households in the 35 percent bracket would see the value of their itemized deductions capped at 28 percent. ( a household w/ an income above $250,000, itemized deductions of $10,000 that are now worth a $3,500 tax break would be worth only $2,800.
Several folks I know on non-profit boards and working in the non-profit sector are very concerned this will have a negative impact on their ability to maintain programs.
February 27th, 2009 at 11:54 am
This limit on charitable deductions for high income taxpayers is only a proposal put out by Pres Obama. It’s is not part if the American Recovery and Reinvestment Act passed on Feb 17. There is so much legislation flying around that its hard to keep straight what has passed and what is proposed.
Itemized deductions are already limited for taxpayers with AGI over $159,950. See this IRS Publication:
http://www.irs.gov/publications/p17/ch29.html
I’ve yet to see a comparison between the current limitation and Obama’s proposal.
In general, a new limit on deductions might discourage some giving, but probably not much more than the current limits, IMHO.
Carol Topp, CPA
February 27th, 2009 at 3:53 pm
Thanks for the clarifications and observations Carol. I would be curious to see statistics on nonprofits across the board, what the average donation per person per year is. The stat on foundation vs. individual giving is like 80/20, with more revenue coming from individuals. Of those individuals what percentage is from large donations over the current limits.
If an organization has major donors who may fall into that category, I imagine two courses of action (not mutually exclusive): 1. seek to further communication with the major donor to continue a good relationship. 2. cultivate more donations from a wider pool, micro-donations and monthly giving programs for example.
March 2nd, 2009 at 10:45 am
Regardless of what the economy is doing, I think it’s critical to stay positive.
If you buy into the “doom and gloom” thinking that is so pervasive right now, your fundraising results will shrink. Lots of people are scared right now. And many are tightening up whether they really need to or not. Don’t get scared too. You’ve got to stay positive and focused on the mission of your organization.
Here’s a recent post on my blog with a short test to see if you have your head in the game. http://www.getfullyfundedblog.com/?p=445
Sandy Rees
Fundraising Coach