Moody's Warns of 'Sharp Deterioration' in College Finances

The latest report from Moody's Investors Service on private colleges shows that they are only now starting to feel the pinch of the recession and warns that a "sharp deterioration" is expected in the 2009 data.

Full-text article by Marc Beje is available via The Chronicle of Higher Education, 6.8.09. [Subscription required.]

NYC Opera Posts Biggest Loss in a Decade

The New York City Opera lost $11.3-million in the 2007-8 fiscal year, leaving the 66-year-old company in its deepest financial hole since 1999.

Full-text article by Philip Boroff is available via Bloomberg.com, 6.1.09.

Economic Impact on Arts Organizations

Musicians in the Chicago Symphony Orchestra have agreed to a 2.5 percent pay cut for about two years and the donation of additional services to help the organization save about $4-million, reports The Chicago Tribune.

Symphony organizations in Indianapolis and New York, as well as several museums around the country, have employed the use of text messaging to engage their audiences, reports The New York Times.

A story on National Public Radio’s Morning Edition discusses whether big expansion projects at art museums, such as the $300-million project just completed at the Art Institute of Chicago, contribute toward the goal of revitalizing local economies and increasing attendance.

Will Higher Education Be the Next Bubble to Burst?

The public has become all too aware of the term "bubble" to describe an asset that is irrationally and artificially overvalued and cannot be sustained. The dot-com bubble burst by 2000. More recently the overextended housing market collapsed, helping to trigger a credit meltdown. The stock market has declined more than 30 percent in the past year, as companies once considered flagship investments have withered in value.

Is it possible that higher education might be the next bubble to burst? Some early warnings suggest that it could be.

Full-text article by Joseph Marr Cronin and Howard E. Horton is available via The Chronicle of Higher Education, 5.22.09. [Subscription required.]

Grim Times Continue for Higher Education

Despite the promises made by the new Obama administration, the impact of America's collapsing economy continues to rattle the nation's higher education institutions. From the Ivy League universities to little-known colleges, falling revenues and the declining value of endowments have resulted in staff redundancies, cancellations of new building works and even cuts in enrollment numbers.

Full-text article by Leah Germain is available via University World News, 4.27.09.

The Universities in Trouble

Along with failing banks, auto manufacturers, and insurance companies, universities have been making headlines—especially those whose gigantic endowments (Harvard's was approaching $40 billion before the crash) have sharply declined.

Full-text article by Andrew Delbanco is available via The New York Review of Books, 5.14.09.

What Good Are Economists Anyway?

Why they failed to predict the global economic crisis—and why their help is still crucial to a recovery.

Full-text article by Peter Coy is available via BusinessWeek, 4.16.09.

How Charities Are Coping

If you think that the recession is clobbering for-profit enterprises, just consider the tough times that some not-for-profit enterprises are encountering. If they hope to top last year's records, America's philanthropies don't stand a prayer.

Full-text article by Marshall Loeb is available via MarketWatch, 4.9.09.

Sanford Completes $400M Donation Ahead of Schedule

T. Denny Sanford, citing today's economic uncertainties, has paid off five years ahead of schedule the full $400 million donation he promised to the Sioux Falls hospital system that now bears his name.

Full-text article by Jon Walker is available via ArgusLeader.com, 4.9.09.

House and Senate Differ on Estate-Tax Provisions

The House and Senate have passed budget outlines that differ significantly in how they would apply the estate tax.

The House version follows what President Obama has proposed and umbrella groups of nonprofit organizations have embraced: keeping the estate tax at levels that are already in effect this year. But the Senate version would cut the estate tax, a move that alarms many charitable organizations.

Full-text article by Grant Williams is available via The Chronicle of Philanthropy, 4.3.09.

Orchestras Need New Business Model

American orchestras, like other types of arts groups, have had an enormous rug pulled out from under them. Some endowments are worth half what they were a year or two ago, but the operations they underwrite have not shrunk in proportion. The response so far - 10 percent pay cuts, small concessions from musicians on work rules - is a relative nip and tuck. Unless the economy soars in the next few years, and no one is predicting that, American orchestras are going to have to invent a new business plan.

Full-text article by Peter Dobrin is available via The Philadelphia Inquirer, 4.5.08.

Giving Capitalism Its Due

Carl Schramm doesn't buy the idea that some businesses are "too big to fail." That notion, says the president of the Kansas City-based Kauffman Foundation, only creates obstacles for entrepreneurs. Instead, he sees the failure of big companies as the "moment when 1,000 flowers can bloom."

Full-text article by Naomi Schaefer Riley is available via The Wall Street Journal, 4.4.09.

Credit Crunch Attracting Clients to Nonprofit Microlenders

With banks continuing to keep a tight rein on credit, American small businesses and would-be entrepreneurs are increasingly turning to nonprofit lenders for financing.

Full-text article by Anjali Cordeiro is available via The Wall Street Journal, 3.31.09.

Joining Forces in the 'Back Office'

Five social-service charities in the Minneapolis-St. Paul area established a separate organization to handle 'back office'operations for all of them, and the benefits have gone beyond cost savings.

Full-text article by Nicole Wallace is available via The Chronicle of Philanthropy, 3.23.09. [Subscription required.]

In Tough Economic Times, Medical Centers Take a Hit

An AAMC survey of chief financial officers (CFOs) found that teaching hospitals had a 25 percent loss in operating margins (a measure of operational efficiency) from the third quarter of 2007 to the third quarter of 2008. An American Hospital Association survey analysis of more than 550 hospitals found that their 2008 third-quarter investments had a combined loss of $832 million, down from a $396 million gain a year earlier. During this quarter, the same hospitals had a 1.6 percent average loss, compared with a mean 6.1 percent profit the year before.

"There is a greater need for philanthropy now," said Miami-based Mount Sinai Medical Center President and CEO Steven Sonenreich, M.B.A. "We are placing more of a focus on the growing number of 80-somethings, people who are not as affected by the economy and are in a position to make a major contribution."

Full-text article by Elissa Fuchs is available via the AAMC Reporter, 3.19.09.

Community Colleges and the Economy

Summary report for the winter 2009 League for Innovation/Campus Computing Project survey of 120 community college presidents about the impact of the economic downturn on enrollments, hiring, budgets, and program development.

The report is available via The Campus Computing Project, 3.17.09.

The Wealth of the Baby Boom Cohorts After the Collapse of the Housing Bubble

This report builds upon previous CEPR projections to more accurately describe the current wealth prospects for the baby boom cohorts aged 45 to 54 and 55 to 64. The severity of the housing market meltdown, coupled with the recent collapse of the stock market, has had a severe negative impact on the wealth of these cohorts. Using data from the 2004 Survey of Consumer Finance and the November 2008 Case-Shiller 20 City Price Index, the authors create three possible scenarios for baby boomer wealth and find these households will enter retirement with little wealth beyond Social Security. For each cohort in 2004 and 2009, the paper analyzes net worth, financial assets, equity in real estate, percent of households in each cohort who will need cash to close on their primary residence, net worth of homeowners, net worth of non-homeowners, and the percent of homeowners who would need cash to close on their primary residence.

Full-text report is available via The Center for Economic Policy and Research, 2009.

Double Take: Higher Education

As endowments continue to lose value and economic outlooks grow ever bleaker, some of the nation’s wealthiest universities are calling for greater sacrifices than they were just a few months ago. In recent weeks, administrators at Stanford, Harvard and Cornell universities have laid out financial assessments that will require budget reductions, layoffs and increased borrowing. These measures go beyond earlier plans to deal with the economic downturn, suggesting the first steps were deemed insufficient to address a problem that has grown in scale.

Full-text article by Jack Stripling is available via InsideHigherEd, 3.10.09.

Trading Filet Mignon for Chicken Pot Pie

With unemployment at record highs and the stock market at alarming lows, even the wealthy — no matter whether they personally lost money or not — are toning down the benefit, that yearly fund-raising ritual, in a number of ways.

Full-text article by Tracie Rozhon is available via The New York Times, 2.25.09.

Fewer Individuals Making Million Dollar Gifts

A new study from the Center on Philanthropy at Indiana University indicates the weak economy is slowing charitable giving, but not stopping it. The center's "Million Dollar List" shows the number of gifts of at least $1 million to charities in the last six months of 2008 dropped 33 percent, compared to the same period in 2007.

Full-text press release is available via Inside INdiana Business, 2.25.09.

Twin Cities Arts Advocates Argue for Financial Reality

Hundreds of people are expected at Arts Advocacy Day at the Minnesota State Capitol today. The lobbying comes as Gov. Tim Pawlenty is recommending the zeroing out of the State Arts Board's funding.

However, some within the arts community say they need to do a better job of explaining how the arts are vital to the Minnesota economy.

Full-text article by Euan Kerr is availble via Minnesota Public Radio, 2.24.09.

Nonprofit Theaters Plan Layoffs and Smaller Shows, Survey Finds

A survey of American nonprofit theaters found that more than half plan to offer cheaper tickets and nearly as many will eliminate administrative staff positions in expectation of shrinking sales and fund raising, Bloomberg news service reports.

The Theatre Communications Group surveyed 210 member organizations last month. Most reported that they are producing new calculations of expenses for the coming year, with theaters that have budgets exceeding $10-million reducing spending by an average of $750,000. A third of companies said they would alter programs to include shows with smaller casts.

Full-text article by Philip Boroff is available via Bloomberg.com, 2.20.09.

Raising Money in Hard Times

Fund raisers across the country are trying new approaches to attract and keep donors. The Chronicle offers a 10-step battle plan for making the best of a tough fund-raising climate based on interviews with charity leaders and fund-raising experts.

This special report is available via the Chronicle of Philanthropy, 2.26.09.

Texas Billionaire's Legal Woes Could Cost Charities

The freezing of Texas billionaire Allen Stanford’s assets amid federal fraud charges could have a significant impact on the financier’s numerous charitable beneficiaries in the Houston area and elsewhere.

Full-text article by Purva Patel is available via The Houston Chronicle, 2.17.09.

Trio of Colleges Focus on $1B Campaigns

In the Greater Boston region three schools — Boston College, Tufts University and Brandeis — are in the midst of capital campaigns worth upward of $1 billion despite what experts said could be one of the most difficult fundraising environments in years.

Bruce Flessner, a principal at Bentz Whaley Flessner, said colleges in the middle of ongoing capital campaigns will likely be able to close them by their set deadlines. But he added fewer colleges will likely launch such large initiatives this year.

Full-text article available via the Boston Business Journal, 2.13.09.

Charities See Donations Drop As Need Spikes

Major philanthropies expect more unfulfilled pledges in face of recession, but also see uptick in volunteerism. Surveys of the largest 100 United Ways in December and January suggest a decline of 2% to 5.6% in giving this year.

Full-text article by Tom Watkins is available via CNN.com, 2.13.09.

Minnesota Hospitals In Bad Shape, and Things Could Get Worse

The prognosis for state hospitals and health care providers will be sustained pain if Gov. Tim Pawlenty’s proposed budget cuts are approved, the head of the Minnesota Hospital Association predicted this week.

Full-text article by Scott Carlson is available via The Saint Paul Legal Ledger, 2.12.09.

Battered Nonprofits Seek to Tap Nest Eggs

Universities, museums and other nonprofits battered by investment losses are pushing states to ease legal limits on spending so they can tap their endowments to avoid imminent layoffs and deep cuts to programs.

Full-text article by John Hechinger and Jennifer Levitz is available via the Wall Street Journal, 2.11.09.

Entrepreneurs Confident In Recession

Despite anxiety brought on by the economic crisis, nearly six in 10 entrepreneurs say they would keep their current levels of social responsibility steady, while a quarter plan to increase their philanthropic efforts, says a survey by the Entrepreneurs' Organization.

Full-text article is available via the Philanthropy Journal, 2.4.09.

Philanthropy Must Turn More Attention to Housing Issues

The American economy cannot recover without a turnaround in housing.

While the federal government considers what additional steps to take to help homeowners and the housing market, American philanthropy need not wait to play a role in solving the crisis and helping to spur a recovery.

Full-text article by Jonathan Fenton is available via the Chronicle of Philanthropy, 2.12.09. [Subscription required.]

Nonprofits Scramble for Funding

With endowments and donations shrinking and demand for some services rising, nonprofits are using all their ingenuity to raise enough money to stay afloat.

Full-text article by Prashant Gopal is available via BusinessWeek, 2.4.09.

Metrostudy: Reality Worse Than Housing Numbers Indicate

Government numbers aren’t painting the real picture of the housing problem, according to economists at Houston-based housing research firm Metrostudy.

The latest figures from the U.S. Department of Commerce show that housing sales have fallen to their lowest level on record — 331,000 new homes sold at an annualized rate.

Full-text article is available via the Houston Business Journal, 1.29.09.

The State of Nonprofits: Gift Don't Meet the Demands (Atlanta, GA)

The situation in the arts isn’t pretty. Hospitals feel the pain. Foundations are shakier than they once were. And some colleges are struggling to make the financial grade.

Across the board, local nonprofit institutions are watching their investments shrink while their donors face growing demands on their own tenuous finances, according to interviews with dozens of nonprofit officials.

Full-text article by Gayle White et al. is available via the Atlanta Journal-Constitution, 2.1.09.

Charities Feel the Credit Crunch

Nonprofit organizations are in for a tough year of tightening credit markets and a deepening recession, according to two new reports from a credit-rating service.

Full-text article by Debra E. Blum is available via the Chronicle of Philanthropy, 1.27.09.

California State U. System Halts Work on 130 Construction Projects

More than 130 building projects on 23 California State University campuses have been forced to a halt by the state government’s cash-flow crisis.

Full-text article by Lawrence Biemiller is available via the Chronicle of Higher Education, 2.2.09.

Fund-Raising Worries? These 2 Consultants Provide a Road Map for Bumpy Times

For fund-raising consultants, the volatile economy has brought one constant: more time on the road.

Even in good times, philanthropy's road warriors spend much of their time traveling to clients' campuses to help plan megacampaigns or improve giving programs. But now, as the stock market stumbles and the country's financial system gets an extreme makeover, demand for their presence has gone up, as college administrators and trustees look for advice on how to stay one step ahead of the shifting landscape.

Bruce Flessner, a principal with the consulting firm Bentz Whaley Flessner, has made presentations once a week at board meetings for the nonprofit organizations he works with. A year ago, he did one a month. "When the economy goes south, you do a lot more presentations to the boards," he says.

Full-text article by Kathryn Masterson is available via the Chronicle of Higher Education, 1.22.09. [Subscription required.]

Stimulus Bill Includes Billions of Dollars in Help for Students and Colleges

Students, researchers, and colleges would benefit from new spending and tax breaks included in an $825-billion economic-stimulus plan that Democratic leaders in the U.S. House of Representatives unveiled on Thursday.

Full-text article by Sara Hebel is available via the Chronicle of Higher Education, 1.16.09. [Subscription required.]

Recession Squeezes Even Philanthropies of Gates, Allen

Some of the region's biggest givers, who have helped turn Seattle into a center of global philanthropy, are determined to maintain their ambitions. Yet, they are either curbing their planned growth or, in some cases, reducing their giving.

Full-text article by Kristi Heim is available via the Seattle Times, 1.14.09.

California Universities to Freeze Top Administrator Salaries as Budget Crisis Worsens

California’s two public-university systems announced today that they would freeze the salaries of top administrators, one of many steps the systems are taking to cut costs during the state’s most severe fiscal crisis in decades.

Full-text blog post by Josh Keller is available via the Chronicle of Higher Education, 1.9.09.

University Leaders From Around the World Discuss Fund Raising in Troubled Times

The new philanthropic landscape could yield unexpected opportunities for higher-education institutions, university leaders from around the world were told at a meeting in New York.

Full-text article by Aisha Labi is available via the Chronicle of Higher Education, 2.12.09. [Subscription required.]

2009 Best Values in Private Colleges

Despite shrinking endowments, these schools deliver an affordable, high-quality education.

Full-text article by Jane Bennett Clark is available via Kiplinger.com, 1.8.09.

Recession Hits Arts Groups Especially Hard

Despite generally strong attendance at many nonprofit museums and theaters in recent months, many arts charities around the country are laying off workers or adopting hiring freezes and cutting other expenses in response to a falloff in donations from companies, individuals, and governments. And most are bracing for much tougher times ahead.

Full-text article by Sue Hoye is available via the Chronicle of Philanthropy, 1.2.08.

Charitable Giving in 2008

Despite an economic recession, America's wealthiest individuals gave record amounts to charity last year.

At least 16 individuals made gifts of $100 million or more in 2008, The Chronicle of Philanthropy reports. That's more people than ever have done so in the 12 years that The Chronicle has been keeping such a tally.

Full-text article by Maria DiMento is available via the Chronicle of Philanthropy, 12.31.08.

Fundraisers See Chilly Giving Climate Now and in Future

The fundraising climate is the toughest it’s been since 1998, according to the Indiana University Center on Philanthropy’s most recent Philanthropic Giving Index.

Full-text article is available via the Association of Fundraising Professionals, 1.5.09.

Survey: How Colleges Are Responding to the Recession

Most colleges have steered through the first jolts of the recession without resorting to layoffs, cutting employee benefits, or imposing across-the-board freezes on hiring. But the economic pain is afflicting campuses in many other ways, according to the findings from a new survey of chief business officers conducted last month by The Chronicle and Moody's Investors Service.

Full-text article by Goldie Blumenstyk is available via the Chronicle of Higher Education, 1.9.09. [Subscription required.]

Markets Limp Into 2009 After a Bruising Year

In a mere 12 months, the Dow Jones industrial average plunged 4,488.43 points, or 33.8 percent, its most punishing loss since 1931. Blue chips like Bank of America, Citigroup and Alcoa lost more than 65 percent of their value. The broader Standard & Poor’s 500-stock index sank 39.5 percent, almost exactly matching its decline in 1937.

All told, about $7 trillion of shareholders’ wealth — the gains of the last six years — was wiped out in a year of violent market swings.

Full-text article by Vikas Bajaj is available via the New York Times, 12.31.08.

Ivory Towers Are Feeling The Economic Pinch

Shakespeare, Edith Wharton and Internet poetry were supposed to be among the main topics of discussion at the largest gathering of humanities professors in the nation. But the sour economy and shrunken job market for academics proved to be more dramatic than any novel or play.

An estimated 8,500 professors and wannabe professors of English literature, composition and foreign languages gathered for the annual meeting this week of the Modern Language Assn., a convention that traditionally combines high-flying literary debate with a gargantuan employment fair. Job-seekers were disappointed that many colleges had reduced or canceled faculty hirings because of shrinking endowments and state funding cuts.

Full-text article by Larry Gordon is available via the Los Angeles Times, 1.1.09.

The Debt Trap: Colleges Profit as Banks Market Credit Cards to Students

As concern about student debt rises, promotional relationships between schools and banks have sounded alarm bells.

Full-text article by Jonathan D. Glater is available via the New York Times, 1.1.09.

What Billionaires Think Will Happen In 2009

Where's the economy going? The Financial Post queried a few members of the Forbes list of the 400 richest Americans to get their thoughts on a range of topics, from unemployment and the price of oil to financial regulation and fiscal policy.

Twelve billionaires answered the 10-question survey and nearly all believe the economy will return to positive growth sometime in the fourth quarter of 2009 or the first quarter of 2010.

Full-text article by Claire Obusan is available via the Financial Post, 12.30.08.

Pinched Colleges Squeezing Their Alumni

As the economic downturn shrinks endowments, big institutions may be affected more than smaller schools that rely more on fees. Officials try to strike a balance in the messages sent to graduates.

Full-text article by Gale Holland is available via the Los Angeles Times, 12.25.08.

Survey: Fundraising Confidence Reaches New Low

Confidence in the fundraising climate declined 22 percent in the last six months, reaching its lowest level in a decade, according to a survey of nonprofit professionals.

Full-text article by Mark Hrywna is available by the NonProfit Times, 12.18.08.

College May Become Unaffordable for Most in U.S.

The rising cost of college — even before the recession — threatens to put higher education out of reach for most Americans, according to the biennial report from the National Center for Public Policy and Higher Education.

Full-text article by Tamar Lewin is available via the New York Times, 12.3.08.

Super Rich Fleeing Stocks and Bonds for Cash

Investors worldwide have been scrambling to find a safe place for their savings this year in the face of a global economic slowdown, a credit crisis that has spooked markets, and an energy price spike spurring concerns about inflation.

Many of the world's wealthiest people have moved their money out of stocks and bonds and into cash, the head of HSBC's Swiss private banking unit said.

Full-text article is available via Reuters/CNBC.

Year-End Appeals: Seeking Gifts in Uncertain Times

Many charities are entering the most crucial months of the fund-raising year at the same time that many donors are dealing with the most uncertain economic circumstances of their lifetimes.

What should fund raisers do to encourage donors to support their causes? What approaches turn people off? What kind of results are realistic to expect?

Full-text transcript of Bruce Flessner's conversation with Peter Panepento via the Chronicle of Philanthropy, 10.14.08. [Subscription required.]

Worst Week Ever: Dow, S& P Each Fall 18%

Cloaked in the fear of a global recession, U.S. stocks limped to the end of a brutal week of trading yesterday, ending their worst week in history.

Full-text article by Renae Merle is available via the Washington Post, 10.11.08.

High-Net-Worth Families Cutting Back on Giving, Study Finds

A new report from private wealth-research firm Prince & Associates suggests that the sputtering economy and financial meltdown on Wall Street are beginning to pinch the affluent, who are responding by cutting back on their charitable giving, Forbes reports.

Full-text article is available via the Philanthropy News Digest, 10.6.08.

On Eve of Philanthropy Forum, Clinton Worries About Economy

Preparing to open his annual philanthropy gathering here against the backdrop of historic upheaval on Wall Street, former president Bill Clinton expressed concern Monday that the economic downturn could undermine major charitable investments around the world just when help is particularly needed.

Full-text article by Philip Rucker is available via the Washington Post, 9.23.08.

Wall Street's Perfect Storm

Investors deal with a Lehman bankruptcy, the sale of Merrill Lynch to BofA, and a possible AIG restructuring.

Full-text article by David Henry is available via BusinessWeek, 9.15.08.

Charity Buoyed by Resilience of Wealthy Donors

The economic slump is already causing financially stretched middle-income Americans to curtail their charitable donations, but philanthropic giving by the wealthy is likely to remain strong – if not quite as generous – throughout the rest of the year.

The timing of big gifts could be affected, too, as most large donations tend to be driven by events such as the selling of a piece of appreciated real estate, or liquidating a family business – occasions that could be delayed by volatility in the stock market.

Full-text article by Rebecca Knight is available via the Financial Times, 8.19.08.

The Impact of the Housing Crash on Family Wealth

“The Impact of the Housing Crash on Family Wealth,” analyzes the wealth holdings of families in all age cohorts in 2004 and projected the wealth of these families in 2009. The findings are presented by income quintile under three scenarios- real house prices remain at current levels, real house prices fall by an additional 10 percent, or real house prices fall by an additional 20 percent. In all three scenarios, the vast majority of these families will have little or no housing wealth in 2009.

Full-text study is available by the Center for Economic and Policy Research.

8 Reasons You Should Not Expect an Inheritance

Costs are rising, retirement income is less secure and the golden years are lasting longer, leaving older people less to bequeath to their heirs.

Full-text article by Ron Lieber is available via the New York Times, 6.21.08.

You Think Flying Is Bad Now...

Something has to give as airlines adjust to $130 oil and brace for a record yearly loss. Not all of the majors will survive in this economy.

Full-text article by Dean Faust and Justin Bachman is available via Business Week, 5.28.08.

Gala Auction Feels a Chill From Wall Street’s Slump

At the 2008 Robin Hood Foundation benefit this week, auctiongoers donated that much money to charity. But many of the market wizards are making less these days — and they are giving away less, too.

Full-text article by Jenny Anderson is available via the New York Times, 5.29.08.

Corporate Giving in Uncertain Times

As the national economy sinks deeper into recession, the nonprofit sector is starting to feel the same anxiety that has beset the financial, housing and retail sectors.

Nonprofit groups fear that companies forced to tighten their budgets will start by reducing or eliminating their philanthropic programs. While corporate giving constitutes only about 5 percent of all donations nationwide, any cuts could have significant impact on programs and organizations.

Full-text article by Clay Holtzman is available via MSNBC.com, 5.11.08.

Struggling Communities Turn to Colleges

In economically troubled areas, small private colleges help generate development projects in large part as a matter of survival.

Full-text article by Karin Fischer is available via The Chronicle of Higher Education, 5.16.08. [Subscription required.]

How the Economy Impacts Capital Campaigns

Fund raisers across the country say that individuals, corporations, and foundations they expected to make big gifts to capital campaigns this year have refused to do so, while others say that donors are making smaller-than-expected contributions.

Full-text article by Holly Hall is available via The Chronicle of Philanthropy, 5.15.08. [Subscription required.]

Smartlink.org Creates Blueprint for Effective Philanthropy in Tough Economic Times

At a time when many in the community are feeling the effects of a possible recession, Smartlink.org – a nonprofit online resource of Community Giving Resource (CGR) that helps individual donors and small foundations explore issues and give strategically within communities – released guidelines for leveraging philanthropy to build stronger communities. Smartlink.org’s guidelines address the growing need for reliable information for donors, driven by a sharp increase in family philanthropy, the inter-generational transfer of wealth, and the growing interest of maturing Baby Boomers to give back.

Full-text press release is available via BusinessWire.com, 5.6.08.

Americans Rank Health Care Near Top of Their Economic Woes, New Poll Finds

Healthcare costs rank among Americans’ top personal economic problems, and their struggles to deal with those costs have affected both their financial well-being and their family’s health care, a new Kaiser Family Foundation poll finds.

Survey Brief: Economic Problems Facing Families

Colleges Step Up Fund-Raising Efforts to Support Student Aid

Under pressure to be more affordable, many institutions feel a heightened need to provide more financial aid -- and they are turning to alumni and other private donors for help.

Full-text article by Beckie Supiano is available via The Chronicle of Higher Education, 5.1.08. [Subscription required.]

Wall Street's Woes Hit Charities

New York charities, long dependent on steady donations from New Yorkers who earn big salaries on Wall Street, are starting to feel the strain of the uncertain economic times.

Full-text article by Louise Roug is available via The Los Angeles Times, 4.29.08.

What It Takes to Be a Good Fund Raiser

Demand for fund raisers continues to be intense as the number of charities in the United States keeps growing, the ambitions of organizations expand, and the economy’s ups and downs lead organizations to look at ways to raise private money to replace government aid.

Dozens of people who want to fill those jobs — or upgrade their skills — gathered at New York University on Saturday to participate in a day-long conference run by the George Heyman Center for Philanthropy and Fundraising.

Full-text blog post by Stacy Palmer is available via The Chronicle of Philanthropy's Prospecting Blog, 4.27.08. [Subscription required.]

Arts Groups Feel Economic Woes

Museums, symphony halls, dance companies, and other arts groups are feeling the impact of spiking interest rates on municipal bonds and low returns on investments. Plus many groups fear that the sagging economy will lead to a drop in ticket sales and donations.

Full-text article by Karen Matthews is available via Philly.com, 4.21.08.

Even rich think they might be too rich

The rich are not like you and me, F. Scott Fitzgerald wrote in The Great Gatsby.

For one thing, they're getting ahead at a quicker pace, according to a new study. Two-thirds surveyed on middle-class attitudes believe that "the rich are getting richer." The authors of Inside the Middle Class: Bad Times Hit the Good Life say their hunch is right.

Full-text article by Andrew Herrmann is available via The Chicago Sun-Times, 4.13.08.

As Wall Street Falters, Charities Seek Donors Elsewhere

Charities that traditionally find financial support from Wall Street investors, corporations, and law firms in New York are adopting a cautious attitude in response to the economic downturn.

Full-text article by Geraldine Fabrikant is available via The New York Times, 4.12.08.

Fewer Options Open to Pay for Costs of College

Parents will have to navigate unfamiliar and difficult terrain when it comes time to pay for college this year, with student loan companies in turmoil and banks tightening their standards and raising rates on other types of borrowing.

Full-text article by Jonathan D. Glater is available via The New York Times, 4.12.08.

New college graduates to find a strong job market

New college graduates this spring can count on a welcoming job market as employers seek to replace a baby boom generation reaching retirement age.

Employers are planning to hire 16% more 2008 college graduates than they did a year ago, according to a projections from a survey by the National Association of Colleges and Employers, a Bethlehem, Pa.-based group that tracks the market for new graduates.

Full-text article by Stephanie Armour via USA Today, 3.10.08.

Are We Talking Ourselves Into Recession?

While you can't talk a strong economy into a weak one, maybe we're making things worse by focusing on the negative news.

Full-text article by Chris Farrell is avialable via BusinessWeek, 3.6.08.

Debate on Economy Grows More Urgent

A surprisingly bleak employment report sent tremors through Washington and roiled the presidential campaign recently, infusing new urgency into the debate over how to reverse an accelerating economic slide and fueling a political contest over who to blame for it.

Full-text article by Peter Baker is available via The Washington Post, 3.8.08.

Health care can ensure a healthy economy, too

Health care has emerged in recent years as a bright spot for the Pensacola Bay Area economy, and as a focus for the future that promises more and better jobs.

Building on a base of existing hospitals, enhancing this area's status as a growing regional medical center is an exciting economic development trend.

Full-text article via Pensacola News Journal, 2.12.08.

You Are What You Spend

Household consumption indicates that the gap between rich and poor is far less than most assume, and that the abstract, income-based way in which we measure the so-called poverty rate no longer applies to our society.

Full-text article by W. Michael Cox and Richard Alm is available via The New York Times, 2.10.08.

America's Richest Counties

Forbes recently published a list of America's richest counties based on median household income data from the 2006 census. Fairfax County, Va., Loudoun County, Va., and Howard County, Md., top the list.

Full-text article by Matt Woolsey is available via Forbes.com, 1.22.08.

Nonprofits Escape Economic Slowdown

One sector of the economy that seems to be thriving is the philanthropic sector. According to the Chronicle of Philanthropy, "Twenty donors made gifts of $100 million or more last year, just shy of the record of 21 such gifts made in 2006, according to The Chronicle's annual ranking of the 50 most-generous Americans. And despite a turbulent economy, fundraisers seeking donations of $10 million or more predict another strong year of big gifts in 2008."

Full-text article by Bonnie Erbe is available via U.S. News & World Report, 1.28.08.

Can an Investor Buy a Community College?

A private investor has offered to buy the online operations and students of Rio Salado College — a community college in Arizona where about half of the 60,000 students study only online — for at least $400 million, and officials at the Maricopa County Community College District, of which Rio Salado is a part, are considering the offer.

Full-text article by Doug Lederman is available via InsideHigherEd.com, 1.23.08.

As wealthy institutions report record fund-raising gains, social-service groups struggle to stay afloat

Signs of a growing fund-raising divide between wealthy organizations and other charities are growing starker.

Full-text article by Holly Hall is available via the Chronicle of Philanthropy, 1.10.08. [Subscription required.]