Nonprofit news roundup April 13, 2009

States shredding social safety nets

In the face of the recession and the deepest and broadest budget deficits in decades, most states are cutting big holes in their social safety nets, often hurting preventive efforts officials say would save money over time, The New York Times reported April 11 (see social safety-net story).

College grads eye public-service jobs

The economic and financial crisis are spurring increasing interest on new college graduates in jobs in public service, government, the sciences and teaching with less interest careers in finance and business consulting, The New York Times reported April 11 (see public-service careers story).

Recession fueling domestic violence

With some hospitals reporting seeing more than twice as many shaken babies as a year ago, and deaths from domestic violence rising sharply in some areas, signs indicate the American home is becoming more violent and that the ailing economy could be at least partially to blame, the Associated Press reported April 11.

Chicago nonprofit hospitals seen skimping on charity care

A new report by the Chicago-based Center for Tax and Budget Accountability says Chicago-area nonprofit hospitals get more in tax breaks than they give in charity care, the Associated Press reported April 10. The 47 hospitals studies received an estimated $489 million a year in tax exemptions and provided $176 million a year in free or reduced-cost health care to the poor

Shriners Hospitals consider closings

Shriners Hospitals for Children might close a fourth of its facilities as donations flatten, costs rise and its endowment shrinks, the Associated Press reported April 10 (see Shriners hospitals story). The charity is taking $1 million a day from its endowment to balance the budget for 22 hospitals providing free care in the United States, Canada
and Mexico. That fund has fallen to $5 billion from $8 billion in less than a year.

Princeton making cuts as endowment loses $5 billion

Princeton University, expecting a one-year plunge of nearly $5 billion in the value of its endowment by the end of June, is $170 million from its budget over two years, a move that will affect construction, department budgets, raises and jobs, the Trenton Times reported April 9 (see college endowment story). The school previously had projected a 25 percent drop in its endowment, valued at $16.3 billion last June. President Shirley Tilghman told the campus this week the drop would more likely be 30 percent, or $4.89 billion. Princeton counts on the endowment for more than 45 percent of its operating revenue.

Wellesley cuts staff, freezes pay, as endowment falls

Wellesley College is laying off 44 employees and cutting another 36 jobs after the value of its endowment plunged because of the turmoil in the financial markets, the Boston Herald reported April 9. The women’s college also has frozen pay for all faculty and administrative staff.

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