The Squeeze on Charities in the Recession of 2008

Every day, it becomes more apparent that the full impact of the economic downturn will be deep and far reaching. I fully expect to see governmental and quasi governmental agencies experiencing the same restructuring pressures as businesses and individuals. And, unfortunately, so too will many charities.

Charitable organizations are being hit by a triple whammy. For those with endowments, investment income has been significantly impacted by the market meltdown. Additionally, reports of reduced giving are quickly becoming more prevalent (and are to be expected with so many potential corporate and individual donors having been themselves the victim of the meltdown.). And, this comes at a time that demand for services will be increasing, while governmental support....at the federal, state, and local level… will be reduced as these agencies deal with their own problems.

The squeeze on charities will be severe!

Few charitable organizations will escape these pressures. And, for those charitable organizations that have become reliant on debt, in anticipation of donations or of receipt of pledged amounts, the squeeze could be particularly severe.

Just another example of the ripple effect that was the subject of an earlier post.

All of us need to consider how we can help these organizations. Beyond money, more than ever they will need volunteer labor. And, these organizations will also need talent that can help them restructure, and do so quickly.

These are not an easy time to focus on the needs of charities….but, now more than ever, they need our support.