Nonprofits expect damage from recession
Many U.S. nonprofits, including those that many people depend on for basics such as food and shelter, expect to sustain to long-term or permanent damage from the recession, according to a survey by Nonprofit Finance Fund, with only 16 percent of nonprofits expecting to cover their operating expenses this year, and 52 percent anticipating long-term or permanent damage, CNN reported March 25 (see nonprofit recession story).
Obama plan seen curbing charitable giving
While President Obama said at his March 24 news conference that his proposed cut in the rate for charitable tax deductions for wealthy people would not cause them to give less to charity, two independent analysis centers say his plan could decrease giving by as much as $3.87 billion, The Washington Post reported March 25 (see charitable tax deduction story). The Center on Budget and Policy Priorities says total charitable contributions would decline about 1.3 percent, and the Center on
Philanthropy at Indiana University says overall giving would drop by 2.1 percent. The highest-income households would decrease giving by 4.8 percent, or $3.87 billion, the philanthropy center found.
British companies expect to cut giving
British corporate philanthropy is expected to fall 34 percent over the next year because of the financial downturn, according to a survey of 450 business leaders finding businesses, a decline that equates to a drop of almost 500 million British pounds, or $728 million, the Financial Times reported March 23 (see corporate giving story).
Cleveland Orchestra faces crunch
With a shrinking endowment and lower revenues, the Cleveland Orchestra faces a projected $4.5 million deficient by the end of the fiscal year in June and likely will make cutbacks, including a 15 percent pay cut for its executive director, 20 percent pay cut for its music director, a scaled-back performance season, cancellation of tour dates, the Cleveland Leader reported March 25. The orchestra also will seek concessions from musicians and other staff represented under labor contracts.
Private schools hit by recession
Facing double-digit drops in the value of their endowments and big increases in requests for financial aid, many private schools are laying off teachers, instituting pay freezes and cutting back on pricey parties and sports programs, the Hartford Courant reported March 25. And with families also feeling the economic pinch, many schools say they will not be able to predict enrollment until late summer.
Emory gets $2 million pledge
The J. B. Fuqua Family pledged $2 million to create an endowment at Emory University to help psychiatrists and researchers at the Atlanta school better understand the genetic and environmental components of depression and how they affect the brain, the Atlanta Business Chronicle reported March 25 (see Emory gift story).