Tracking the economy and its effects on nonprofits lately has me feeling like I am on a roller coaster ride. I have that kind of sick to my stomach feeling just after you leave the highest point of the ride and begin the lightning speed descent downward. I am glad we are securely strapped in.
It looks like working through the current economic conditions may take a while. According to an article published today by Guidestar titled "Fasten Your Seatbelts: It's Going to Be a Bumpy Giving Season" gave results of a recent survey. The survey states that 35% of respondents noticed a decline in giving. This is the largest percentage of organizations that have seen decreases since 2003. For comparison-only 38% of respondents noted increases this year in giving-compared to 52% last year that reported increased giving to their organization.
These are uncertain times for all of us. Next time, I will offer strategies for non-profits to weather the storm.
Thursday, November 06, 2008
Wednesday, October 15, 2008
Trickle Down Theory
Today I am joining thousands of others by writing this post for Blog Action Day. The theme for 2008 is poverty. The idea behind this movement is to get as many people as possible to blog about poverty on this day in order to raise awareness and move toward viable solutions. I don't know if the organizers chose this theme in light of the current economic conditions, or if it is a very ironic coincidence.
Obviously the current economic downturn is going to affect how non-profits do business, just like it is affecting for profit businesses. I am hearing about cutbacks in services and personnel at non-profits because of the economy. As discussed in the last Take It For Granted post titled "The Economy and Reality" I cited an article from the New York Times that discussed how the assets from the foundations that were set up by Lehman Brothers, AIG and others have plummeted.
The majority of foundations in America have a large portion of their investments in the stock market. When foundation assets decline, foundations give less to organizations. When organizations receive less funding, they cut back on services.
This means that the impoverished, and I don't mean just cash poor people, but others who will loose their health care, or jobs, and the hungry will all loose out. For some people, they will be worse off than when they started receiving services from the non-profit organization that can no longer for example-help pay for childcare services. That single mom will loose her job due to lack of child care and then her car will be repossessed and she will be unable to find another job. She will be right back in to the cycle of poverty that she is so desperately trying to escape.
It looks like President Reagan's trickle down economic theory really is true. Only in this case the poor will just get poorer and the executives at the bankrupt businesses will get their millions in severance pay and bonuses.
Obviously the current economic downturn is going to affect how non-profits do business, just like it is affecting for profit businesses. I am hearing about cutbacks in services and personnel at non-profits because of the economy. As discussed in the last Take It For Granted post titled "The Economy and Reality" I cited an article from the New York Times that discussed how the assets from the foundations that were set up by Lehman Brothers, AIG and others have plummeted.
The majority of foundations in America have a large portion of their investments in the stock market. When foundation assets decline, foundations give less to organizations. When organizations receive less funding, they cut back on services.
This means that the impoverished, and I don't mean just cash poor people, but others who will loose their health care, or jobs, and the hungry will all loose out. For some people, they will be worse off than when they started receiving services from the non-profit organization that can no longer for example-help pay for childcare services. That single mom will loose her job due to lack of child care and then her car will be repossessed and she will be unable to find another job. She will be right back in to the cycle of poverty that she is so desperately trying to escape.
It looks like President Reagan's trickle down economic theory really is true. Only in this case the poor will just get poorer and the executives at the bankrupt businesses will get their millions in severance pay and bonuses.
Thursday, October 02, 2008
The Economy and Reality
It seems as if the whole world is on edge the past few weeks due to the spiraling economic conditions in the U.S. I don't believe it is the end of the world, but I do think that the current events will have a negative impact on charitable giving in the immediate and foreseeable future.
Finally, someone with teeth agrees with me. Check out this NY Times article titled "Economy Expected to Take a Toll on Charitable Giving" I believe the most interesting point in this article is the vastness of the ripples that each of the bankrupted/overtaken corporations (or their foundations) will have on non-profits that serve communities of people.
Stay tuned for more...
Finally, someone with teeth agrees with me. Check out this NY Times article titled "Economy Expected to Take a Toll on Charitable Giving" I believe the most interesting point in this article is the vastness of the ripples that each of the bankrupted/overtaken corporations (or their foundations) will have on non-profits that serve communities of people.
Stay tuned for more...
Wednesday, September 17, 2008
Where Oh Where Have All The Grant Funds Gone?
Americans are feeling the economic effects of higher gas and food prices as well as the recent major issues in the financial markets. Nonprofit organizations are no exception. Or are they?
According to a June 28, 2008 article in the Philanthropy Journal, Americans "donated $306.39 billion to charity in 2007, more than ever before." Giving USA states that is a "3.9% increase compared to 2006." To put this in perspective, individuals give just about 75% of that $306+ billion dollar figure and half of that amount was directed to religious organizations. Giving from foundations rose 12% and corporate giving fell by less than 1% in 2007.
So where are these funds going? Nonprofit executives that I talk to around the country are scratching their heads. Across the board their organizations are experiencing declines in grant funding. These are the people on the front lines providing services to people in need, and they are cutting back. They are scaling down services, staff and using other cost savings methods.
So again, where are these funds going? It is my unscientifically proven belief that more individual, grant and corporate gifts are going to disaster relief efforts. Rightfully so. Communities ravaged by earthquakes, fires and hurricanes need help-and a lot of it.
Meanwhile organizations that serve other needs are continuing to scramble to keep their doors open.
According to a June 28, 2008 article in the Philanthropy Journal, Americans "donated $306.39 billion to charity in 2007, more than ever before." Giving USA states that is a "3.9% increase compared to 2006." To put this in perspective, individuals give just about 75% of that $306+ billion dollar figure and half of that amount was directed to religious organizations. Giving from foundations rose 12% and corporate giving fell by less than 1% in 2007.
So where are these funds going? Nonprofit executives that I talk to around the country are scratching their heads. Across the board their organizations are experiencing declines in grant funding. These are the people on the front lines providing services to people in need, and they are cutting back. They are scaling down services, staff and using other cost savings methods.
So again, where are these funds going? It is my unscientifically proven belief that more individual, grant and corporate gifts are going to disaster relief efforts. Rightfully so. Communities ravaged by earthquakes, fires and hurricanes need help-and a lot of it.
Meanwhile organizations that serve other needs are continuing to scramble to keep their doors open.
Saturday, May 31, 2008
GRANT CONSULTING SERVICES OPENS NEW LOCATION IN SAN DIEGO, CA
At a time when many companies are laying off their employees, or closing up shop, Valerie Nelson, President, of Grant Consulting Services announced the opening of a new office in San Diego, CA. “The decision to open another location is based on the desire to better serve our increasing base of national and international clientele.” Grant Consulting Services assists non-profit organizations in meeting their goals and objectives through comprehensive grant development services. These services include program/project planning, funding research, grant proposal writing, and grant reporting.
Heading up the West Coast office is Amanda Guerin, who has over 20 years of experience in working with expanding markets in varied roles. Amanda’s experience in living and working in locations around the world, such as West Africa, Israel, and the Grand Cayman Islands brings dynamic skills to the company that will empower the organization to better serve the unique needs of non-profit organizations.
Grant Consulting Services serves nonprofit organizations around the globe. The mission of the company is to affect positive change through the written word. Excellence and high value for nonprofits are unique and important aspects of the company.
For information: www.GrantConsultingServices.com or
Contact: info@GrantConsultingServices.com
Telephone: (248) 761-6256 Midwest Office
(619) 252-7189- West Coast Office
Heading up the West Coast office is Amanda Guerin, who has over 20 years of experience in working with expanding markets in varied roles. Amanda’s experience in living and working in locations around the world, such as West Africa, Israel, and the Grand Cayman Islands brings dynamic skills to the company that will empower the organization to better serve the unique needs of non-profit organizations.
Grant Consulting Services serves nonprofit organizations around the globe. The mission of the company is to affect positive change through the written word. Excellence and high value for nonprofits are unique and important aspects of the company.
For information: www.GrantConsultingServices.com or
Contact: info@GrantConsultingServices.com
Telephone: (248) 761-6256 Midwest Office
(619) 252-7189- West Coast Office
Tuesday, May 13, 2008
New Website
Check out our new website at www.GrantConsultingServices.com
More exciting changes will be announced soon!
More exciting changes will be announced soon!
Tuesday, February 26, 2008
Help Wanted
Grant Consulting Services is in need of an experienced grant proposal writer to subcontract on an as needed basis. Hourly pay with no other benefits, except the ability to work from home.
Federal grant application experience is a plus.
Your writing skills could help to positively affect hundreds of thousands of lives.
Please send your resume and cover letter to Grantstuff@wowway.com or fax to 248-786-6866.
Federal grant application experience is a plus.
Your writing skills could help to positively affect hundreds of thousands of lives.
Please send your resume and cover letter to Grantstuff@wowway.com or fax to 248-786-6866.
Thursday, February 14, 2008
The State of Nonprofits
Blackbaud-the makers of the highly used nonprofit software-Raisers Edge, released their study on the State of Nonprofits in the United States. You can view the full report at the Blackbaud website.
To summarize, the outlook looks favorable for nonprofits around the country. Need for services is expected to rise. Staffing projections are on the rise. Revenue from charitable donations are expected to increase. The report notes that "Corporate donations, foundation grants, and special events were also believed to be the areas of greatest revenue improvement." Only 20% of respondents expect revenue to decrease, which is very positive considering the doom and gloom economic reports we see on a nearly daily basis.
What does this mean for grant proposal writers? Keep on cranking out those proposals! Of course the level of giving depends on many factors, such as the type of programs you offer, what new initiatives you will offer over the next year, and the region your organization serves. Regardless of those factors, a well designed fundraising plan that includes grant income can help your organization to increase its revenue, and the good it does in the community.
To summarize, the outlook looks favorable for nonprofits around the country. Need for services is expected to rise. Staffing projections are on the rise. Revenue from charitable donations are expected to increase. The report notes that "Corporate donations, foundation grants, and special events were also believed to be the areas of greatest revenue improvement." Only 20% of respondents expect revenue to decrease, which is very positive considering the doom and gloom economic reports we see on a nearly daily basis.
What does this mean for grant proposal writers? Keep on cranking out those proposals! Of course the level of giving depends on many factors, such as the type of programs you offer, what new initiatives you will offer over the next year, and the region your organization serves. Regardless of those factors, a well designed fundraising plan that includes grant income can help your organization to increase its revenue, and the good it does in the community.
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