Mark another blow for the economic recession as the downtrodden economy is making its way into nonprofit services.
The Chronicle of Philanthropy released a study Monday showing that the nation’s 400 largest charities anticipate a 9 percent decline in giving this year. The Chronicle notes that decline would be the steepest drop since they began tracking private donations to the top 400 U.S.-based charities in 1992.
The study, Philanthropy 400, had shown steady gains of 5 percent to 6 percent through 2007 and 2008, and the anticipated 9 percent decrease for 2009 could affect nonprofit organization in the District, as well as nationwide.
“The charities on the Philanthropy 400, which include big players like United Way, Salvation Army and Nature Conservancy, are a bellwether for how the entire nonprofit world will fare in 2009,” said Stacy Palmer, editor at the Chronicle of Philanthropy.
The study indicates that nonprofit officials are staying “hopeful” that the climbing stock market will “prompt donors to give more,” but they also fear that foundations may suffer further cutbacks.
“Such a sharp decline in their fundraising does not bode well for how smaller nonprofits will fare in 2010, many of which already have made aggressive budget cuts and staff layoffs,” Ms. Palmer said. “So while charities’ ability to scrimp and save any further is limited, they face escalating demands for aid in this recession.”
The Chronicle also said nonprofit organizations are making the “push to be more aggressive in seeking donations.”
Nonprofits will need to get creative in order to serve more people with the possibility of less funds and fewer staff members as the anticipated low donation numbers may take its toll this year.
An earlier Chronicle study showed that the nonprofit sector tends to lag behind the for-profit sector.
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