Prediction: Financial crisis will close 100,000 nonprofits in next 2 years [News, 11.22]


Save the date: Dec. 15“Coming Together in Tough Times”
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On the bright side…
Study: Americans to Spend Less This Holiday, but Donate More (ChristianPost, 11/18)
Americans still giving, despite economic meltdown (AP, 11/21)

Paul Light, before the financial crisis hit
Paul Light,
before the
financial crisis
hit

…but on the other hand:
Prediction: Financial crisis will kill nonprofits (Crain’s, 11/19) – “At least 100,000 nonprofits nationwide will be forced to close their doors in the next two… Mr. Light called on foundations to liquidate their assets to create a safety net for social services groups, or at the very least increase their annual pay-out rates from the current 5%….”
Nonprofits Ponder Increased Demands, Fewer Resources (AlexandriaTimes, Nov. 20) – “[Terri Freeman] recommended that nonprofits consider merging to survive…mergers could allow nonprofits to create shared back-office support.” 

AGING IN PLACE
Fairfax officials are considering incentives for builders and remodelers to incorporate “universal design” into single-family houses. (WaPo, 11/22)

HUNGER
Economy and Food Prices Mean Fewer Pantry Donors (WaPo, 11/20)
A Different Banking Crisis in Need of Fresh Capital (WSJ, 11/20)
Wal-Mart Gives Fresh Food to Help Combat Hunger  (NYTimes, 11/18)

HOMELESSNESS
Fannie, Freddie Halt Foreclosures for Holidays (WaPo, 11/21) 
Homes for the Homeless [Means] Bargains for Everyone (WaPo, 11/20) – Marc Fisher says “Housing First” is a bargain, so look elsewhere for cuts.
Fannie Mae Holds 21st Annual Help the Homeless Walkathon (wire, 11/22)
Housing Project Breaks Ground (WaTimes, 11/22) – “Catholic Charities broke ground Friday on an ambitious public-private housing project that will provide 178 high-quality apartments to low- and moderate-income families.”

EARLY CARE AND EDUCATION
“Quality Pre-K For All” – by Vincent Gray (Independent, 11/20) (via Women’s Foundation

GREAT AMERICAN SLEEP-IN
GlobalGiving Launches ‘Great American Sleep-In’ This Black Friday (wire, 11/20) – This is a great idea. In fact, let’s do it all week.

One thought on “Prediction: Financial crisis will close 100,000 nonprofits in next 2 years [News, 11.22]”

  1. Hello,

    Thank you for a great compilation of articles on recent non-profit news as we all deal with this economic downturn. This does indeed create a dilemma for nonprofits as needs grow and donors have less to give. I have heard a lot in recent days about coming together to weather the storm though, so personally I am hopeful that people will still be supporting their favorite charities–maybe even more so, out of awareness of the needs of others.

    I notice you mention GlobalGiving, a great way to give a donation online. I’d like to recommend another resource for your readers. I work for UniversalGiving™ (UG), a San Francisco-based website designed to connect individuals to reputable charities they can donate to or volunteer with, all over the world. We have a rigorous Quality Model™, which all of our partner nonprofits must pass through to appear on the site, and we don’t take any cut on donations. UG allows people to do something real to help the causes they’re interested in, by allowing those who want to give a multitude of good choices for how to give. As the holiday season approaches, we’re offering gift packages for people who want to do good as a gift to others. Individuals are invited to select an issue they care about, choose a gift package, and UniversalGiving™ will notify their friend or family member of the gift made in their name. This is another great opportunity to fight overconsumerism of the holidays, and do some good in these difficult times.

    If you’d like to find out more about us, our website is http://www.universalgiving.org, or you can visit our blog at http://www.philanthrobuzz.wordpress.com.

    Thank you again for this great run-down on what the future might be looking like for non-profits.

    Best,
    Cheryl Mahoney
    http://www.universalgiving.org

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