Author: Jacobs, Leonard

Publication Year:

Media Type: Periodical (article)

Summary:

Foundations are just beginning to feel the effects of the dot-com crash four years ago, and from the events of September 11th, 2001 and the recession that followed it. According to Foundation Growth and Giving Estimates, the Foundation Center's annual report on the state of philanthropic giving, overall foundation assets decreased by 10.5% between 2000 and 2002. Because many foundations base their giving on multi-year performance of assets, funding to nonprofit charities was down in the subsequent years between 2001 and 2003. However, an economic upswing, and the 9% to 11% increase in foundation assets in 2003, may improve giving in 2004.

Abstract:

Foundations are just beginning to feel the effects of the dot-com crash four years ago, and from the events of September 11th, 2001 and the recession that followed it. According to Foundation Growth and Giving Estimates, the Foundation Center's annual report on the state of philanthropic giving, overall foundation assets decreased by 10.5% between 2000 and 2002. Because many foundations base their giving on multi-year performance of assets, funding to nonprofit charities was down in the subsequent years between 2001 and 2003. However, an economic upswing, and the 9% to 11% increase in foundation assets in 2003, may improve giving in 2004.

Around the time this annual report was released, the Independent Sector issued Guidelines for the Funding of Nonprofit Organizations, a written statement urging funders to change their spending priorities. It encourages funders to provide nonprofits with general operating support if appropriate, and when the funder and the nonprofit organization have significantly similar goals. In addition, this statement stipulates a commitment from nonprofit organizations to implement best business practices.

Arts & Intersections:

Categories: Fundraising, Funding