What will happen to foundation grantmaking in 2009 and 2010? The roots of the story are in the vicissitudes of the stock market, where foundations invest the bulk of their tax exempt assets.
Nonprofits Speaking for Themselves: The Impact of the National Economic Tailspin
What do we know statistically about the impact of the economy on the nonprofit sector?
With nearly two million registered tax exempt organizations ranging from mammoth universities to tiny neighborhood associations, their diversity makes generalizations nearly impossible. But there are some clear trends. Budgets are dipping into the red, reserves are being depleted, reductions in government and foundation funding are taking place, and nonprofit staff are signing up for unemployment benefits.
How Corporate Giving Will Fare in This Recession
Many nonprofits depend on corporate donors for critical philanthropic support. Can they depend on corporate donors through this economic turmoil? That is the question we explore here.
There has always been something counterintuitive about corporate philanthropic grantmaking during recessions. Although one would think that shrinking corporate bottom line would dampen their philanthropic spirits, the data has shown–at least in the past few recessions–that corporations did not deep-six their charitable instincts despite squeezed profit margins, especially compared with the bravado of endowed private foundations.
How will corporate philanthropy actually fare during this recession-closing-in-on-depression? Despite early indications of confidence, economic realities have begun to temper corporate philanthropic predictions.
Sector Can Avoid Bad Investments and Fulfill Obligations
None of us are experts on investments in the stock market, not even the stock market experts. Every day, foundation endowments, public pension plans, and your 401(k)s sink further toward oblivion.
As a run-of-the-mill investor, what you lose in the markets is your responsibility, the result of your risk-return calculus. But as a nonprofit manager or foundation director, your responsibility is different.
It’s not your money. Regardless of whether they’re in overnight sweep accounts or long-term investment funds, the funds you are investing are not yours. They are the funds meant for public benefit that the American taxpayer has entrusted to you for your stewardship.
Boards in Chaos
Powerful Beyond Measure
Over the past few weeks I have been talking on the phone to leaders of nonprofit organizations all over the country to find out what they are doing in the context of an economically and politically confusing environment.
Forward Together
NPQ’s e-Newsletter of March 2, 2009, discusses a new nonprofit coalition on the development of the future role of the nonprofit sector in the U.S. and how to best advance the public interest though these organizations. You can download the declaration [PDF]. We have also included a link if your organization wants to sign the
Update on Greenlining Foundation Grantmaking in California: Big Progress or only the Appearance of Progress?
Remember the debate in California regarding getting large foundations in that state to report on their grantmaking to racial/ethnic communities and to people of color-led organizations? In several postings (available under the "racial equity" category here), the Cohen Report covered the foundations' visceral, furious reaction against the legislation that the California state legislature was considering. Before the legislation got to a vote in the California State Senate, in June 10 foundations struck a deal with Assemblyman Joe Coto, the original sponsor of the proposed legislation, to pull the bill in favor of the foundations spending 6 months or so to come up with a voluntary plan for increasing funding and increased capacity-building support for organizations serving minority communities and for POC-led organizations.
In December of 2008, 9 of the 10 foundations released a report describing their 2-3 year plan, titled Strengthening Nonprofit Minority Leadership and the Capacity of Minority-Led and Other Grassroots Community-Based Organizations. Although the foundations' report includes extensive discussion of the foundations' current grantmaking reaching communities of color, the following chart lists all of the foundations' self-categorized "new" commitments, both individual and collaborative, emerging from their 6-month review.
Reading an Early Draft of the Stimulus Bill Conference Report: Compromise Provisions (Part II)–Safety Net Tax Relief
By the time most people read this, they’ll have seen summaries of the conference report on what the House and Senate conferees finally agreed to. Here’s Part II of what may be in store for nonprofits, based on a reading of the pre-publication draft of the report that will accompany the final bill through the Senate–focusing on issues of tax relief for social safety net purposes.
Reading an Early Draft of the Stimulus Bill Conference Report: Compromise Provisions (Part I)–Spending
The spending provisions of the compromise stimulus bill are a bit easier to track and understand than the more arcane tax provisions (see Part II of CR’s review of the conference report on the compromise House/Senate stimulus bill). This review covers some of the provisions with pertinent direct and indirect implications for nonprofits.
Social Entrepreneurialism at the Public Trough
To most small, local nonprofits–and nearly all operating 501(c)(3)s are small and local–the concept of “social entrepreneurialism” that they hear touted by their funders implies earning income from business-related activities. But some of the most highly publicized nonprofit social entrepreneurs promoted as models for the nonprofit sector-and frequently mentioned by sector leaders influential with the Obama Administration-demonstrate part of their entrepreneurialism by success at the public trough.
STIMULUS: The Compromise Between House and Senate
Details are beginning to emerge as to what the two chambers have done to meld their versions of an economic stimulus package. It's still a moving target, but here are some of the items that seem to be emerging from the conference committee of relevance to nonprofits, drawn from a document released just moments ago by House Speaker Nancy Pelosi's office: