How has the economic downturn affected nonprofits’ ability to raise money?
Many corporations have had to trim their budgets to keep their doors open and don’t have the large philanthropic budgets to contribute at the same generous level as they have in the past. The amount of revenue available every year is uncertain for most nonprofits. Unlike most for-profits, nonprofits don’t depend on product sales, relying instead on the generosity of contributors. Even nonprofits with large endowment funds have uncertain revenue because their investment income depends on the state of the financial markets. Charitable contributions typically shrink in more difficult economic times. In recent years, the level of charitable donations was impacted by the stock market and other investments. During difficult economic periods, the stream of small donations at many charities is unaffected, but big donors give less. As a result, nonprofits are having to watch every penny they generate and pay closer attention to all expense line items. Now more than ever, nonprofits must be even
