Economic Crisis: Commentary
As the sector and this country deal with the current economic crisis, nonprofits of all types and in all regions are being affected. Read on for commentaries analyzing the downturn.
Green Shoots and Glimmers
from New York Times | April 16, 2009
Ben Bernanke, the Federal Reserve chairman, sees “green shoots.” President Obama sees “glimmers of hope.” And the stock market has been on a tear.
So is it time to sound the all clear? Here are four reasons to be cautious about the economic outlook. More
Collaboration: Every nonprofit should be doing it
from Fort Myers Florida Weekly | March 11, 2009
BY ANNE DOUGLAS Director of Programs, Southwest Florida Community Foundation
Collaboration was one of the big buzzwords in the nonprofit and philanthropic world even before the economic crisis hit, as there has been concern for a number of years about the rapid growth in the number of nonprofits across the country and the limited number of resources to support them. Even in better economic times it is best practice to collaborate. Now, for many organizations, it will be essential to their survival. A number of studies have demonstrated that collaboration has a beneficial impact on organizations, resulting in less duplication and overlap of services in addition to more efficient and effective services and better outcomes (Nonprofit Sector Research Fund of the Aspen Institute). Funders like to see collaboration among their grantees because it increases the likelihood that their dollars will be spent on higher impact efforts. More
Don’t Forget the Human Infrastructure
from the Brookings Institution | February 25, 2009
No one knows how deep or prolonged this recession will be but each new batch of figures is scarier than the last.
For this reason, President-elect Obama has decided to take bold action to prevent further damage and revive the economy with a very large fiscal stimulus package—up to $1 trillion over two years. The list of priorities shows that everything is on the table: tax cuts, aid to state governments, and infrastructure—roads, bridges, schools—plus energy efficiency, broadband access and health-information technology.
But there is one big sector that got left off the list: human infrastructure—in the form of investments in the nonprofit sector. Investing just 10 percent of the stimulus, or up to $100 billion, in nonprofits is very important, especially since they are also being hit by these hard economic times. By including this sector we can take advantage of a huge network of institutions that work hard every day to improve the welfare of communities and individuals, that will spend the money quickly, that have the capacity to spread the dollars widely, and that in the absence of such help will need to shrink and thus become another drag on the economy. More
Opinion: Adding to the Nonprofit Work Force Is a Smart Way to Stimulate the Economy
from Chronicle of Philanthropy | January 19, 2009
As charitable organizations face unprecedented challenges because of the global economic crisis, it is time for all nonprofit leaders to join forces and become key players in achieving a recovery.
Instead of doing what nonprofit groups traditionally do—seek money for their own causes and programs—we need to focus on solving the problems at hand. What Americans need now are jobs and what charities need are extra hands, so let’s urge Congress and the White House to make charitable employment a key component of the economic-stimulus plan. More
Opinion: Three Ideas for Enlisting Charities to Bolster the Economy
from Chronicle of Philanthropy | January 19, 2009
As Barack Obama takes over the White House, his first task will be to stimulate the economy. He should focus on the parts of the economy that have the greatest potential to create or maintain jobs and provide the goods and services that enhance the broader public good. He should focus on charitable organizations.
Although usually overlooked in discussions of the economy, the nation’s one million charitable organizations are a major component of the economy. They have combined assets of more than $3-trillion, and they employ more than 11 million people. They also use the services of at least 60 million volunteers. More
Fighting Off Depression
from New York Times | January 4, 2009
“If we don’t act swiftly and boldly,” declared President-elect Barack Obama in his latest weekly address, “we could see a much deeper economic downturn that could lead to double-digit unemployment.” If you ask me, he was understating the case.
The fact is that recent economic numbers have been terrifying, not just in the United States but around the world. Manufacturing, in particular, is plunging everywhere. Banks aren’t lending; businesses and consumers aren’t spending. Let’s not mince words: This looks an awful lot like the beginning of a second Great Depression. More
Now, more than ever, support nonprofits
from Helena Independent Record | December 14, 2008
These are uncertain times for Montanans. The changes and challenges in the world’s economy over recent months have caused many of us to stop and reflect on the impact the current financial crisis is having on our own lives, families, friends, and communities. It is times like these that we also give thanks for the support structures that help us endure.
Nonprofit organizations are at the forefront of this work. Each and every day, Montana’s over 5,000 charitable organizations and 37,000 employees are caring for those most affected by the economic downturn while continuing to educate our children, nurse our sick, mentor our youth, elevate the arts, preserve our heritage, protect our natural resources, rebuild our cities and towns, and more. As Montanans, we depend on nonprofit organizations for the countless facets of our quality of life that make Montana the Last Best Place. Even more, we rely on nonprofits to make life better for the disadvantaged and less fortunate, especially in times of great need. More
Washington must increase aid to states and the poor
from Lansing State Journal | December 14, 2008
With new predictions of rising unemployment and continued woes for the Detroit Three, we know that 2009 won't ring in on a prosperous note in Michigan - far from it.
For many people, it is a time of desperation, not celebration.
More will turn to public assistance or private charities for help. But unlike past recessions, Michigan's public safety net won't keep families from falling into deep poverty.
Last Wednesday, the governor and lawmakers ripped it even further in the Executive Order cuts that take $23 million out of our cash assistance program. More
When a Job Disappears, So Does the Health Care
from New York Times | December 6, 2008
As jobless numbers reach levels not seen in 25 years, another crisis is unfolding for millions of people who lost their health insurance along with their jobs, joining the ranks of the uninsured.
The crisis is on display here. Starla D. Darling, 27, was pregnant when she learned that her insurance coverage was about to end. She rushed to the hospital, took a medication to induce labor and then had an emergency Caesarean section, in the hope that her Blue Cross and Blue Shield plan would pay for the delivery. More
Nonprofits in a faltering economy
from Los Angeles Times | December 1, 2008
I am a social worker, not an economist, and what I know is this: The stock market is in free fall, financial organizations are being bailed out and the Detroit automakers may yet get financial help from Washington. But what about those of us in the nonprofit world? Where's our bailout?
Nonprofits depend on government funding and the generosity of business and individual giving, and those of us in the healthcare field are facing the bleakest of landscapes. Where is the storm of media coverage, the persuasive rhetoric, the public outcry to save critically needed services, such as child care, assisted living, home healthcare and hospital services? Who is documenting our agony? Where are the desperately needed cash infusions to help us restructure in this troubled economy? More
Keep On Giving: Times Are Even Tighter For Others
from Washington Post | November 23, 2008
With rising unemployment and the stock market looking like a bungee jumper whose cord has snapped, it's hard to argue that people should continue their charitable giving.
And yet, I will make that plea.
I know that in tough times you want to pull back on your spending, including planned donations, but that's exactly when your giving shouldn't go down -- when the need is so great. More
Smart Philanthropy in Tough Times: An Interview with Paul Brest, President, William and Flora Hewlett Foundation
from Philanthropy News Digest | November 20, 2008
The debate over what philanthropy can or should do to address human suffering and the great problems of our time is as old as philanthropy itself. As Paul Brest, president of the William and Flora Hewlett Foundation, one of the nation's largest private foundations, writes in his new book, Money Well Spent - A Strategic Plan for Smart Philanthropy: "...the history of philanthropic efforts to improve the world — from reducing drug addiction to ameliorating global disease and poverty — demonstrates how difficult it is to actually make a difference."
In October, Philanthropy News Digest spoke with Brest about the impact of the economic crisis on Hewlett and other foundations, the importance of a strategic approach in philanthropic work, the key elements of such an approach, and why the stakes have never been higher. More
Coping with Tough Times: The View from ‘Nonprofit Street’
From JVA Consulting, LLC, a Colorado-based firm, this blog post discusses the current economic situation and offers concrete recommendations on what your nonprofit can do to weather the storm. You can also check out their selection of low-price webinars.
From the blog post:
"1. Look for grants to help your organization build its capacity. These types of grants will help you build capacity through activities like creating a strategic or evaluation plan, or developing a marketing plan that will continue to make your organization more profitable and more attractive to potential funders. Check out the Technical Assistance grants offered by The Denver Foundation." More
Beyond the Fat Cats
by Bob Herbert | New York Times | November 10, 2008
The most important thing the Democrats and President-elect Obama can do with regard to the economy is bring back a sense of fairness and equity.
The fat cats who placed the entire economy at risk with their greed and manic irresponsibility are trying to lay claim to every last dime in the national Treasury. Meanwhile, we’re nowhere close to an economic recovery program that will help the people who are hurting most. More
Volunteerism critical in tough times
from Philanthropy Journal | November 10, 2008
The gift of donating one's resources to a charity, whether time or money, is a rewarding experience during the best of times.
But donations during a time of unsettled economic issues is a true testament of a volunteer's dedication. More
In a Successful Campaign: Lessons for Nonprofits
by Paul Schmitz - from the Nonprofit Quarterly | November 7, 2008
Now more than ever, nonprofit organizations need to get ahead of the curve. We have entered a difficult period, when the need for nonprofit services will increase, and resources to pay for these services—public and private—will be constrained. The severity of the current financial crisis—compounded by two wars, a crumbling infrastructure, escalating health-care costs, an emerging entitlement wave, and massive government debt—make most forecasts range from merely pessimistic to gut-wrenching. Our special role in bringing citizens together to serve, deliberate, advocate, and promote public goods will be more important than ever, but at the same time our capacity to fulfill our missions will be greatly challenged. More
Because Things in the Game Done Changed: Nonprofits Need Generation Y Leadership in an Uncertain Economy
Perspectives from the Pipeline | October 27, 2008
Because right now is an opportunity for young nonprofit professionals to bring fresh, innovative ideas for how we do the work of social change. As a sector faced with a myriad of uncertainty, our old solutions will absolutely not work. But don't take my word for it; Albert Einstein tells it like it is (and always will be):
Colliding Interests: The Wall Street Bailout and the U.S. Nonprofit Sector
from The Cohen Report | September 29, 2008
A bailout package is ready to be voted on by Congress, but that doesn’t obviate the concerns of Nonprofit Quarterly readers who by and large believe that the bailout and the conditions that led to it reveal something fundamentally wrong about our society. The so-called Troubled Assets Relief Program (TARP) may even be necessary to jumpstart liquidity and credit in the financial sector, but it is for many a bitter pill to swallow. More
What the Financial Sector Meltdown Really Means for Nonprofits and Philanthropy
From The Cohen Report | September 23, 2008
In the wake of the federal government’s intervention in the financial markets this past week—unprecedented since the Depression era banking legislation put through by Franklin Delano Roosevelt—nonprofits should not look to philanthropy from commercial banks and investment firms to soften the blow of the ailing economy and the inevitable impact on the nonprofit sector. More
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