Arizona Funders Respond to the Economic Crisis
Arizona Grantmakers Forum is working to compile resources, tools, opinions and ideas to help the philanthropy and nonprofit community be better informed when responding to the current economic crisis.
Click on the following links for more information:
2008 Economic Impact Survey - This survey captures the changes and projected changes in budgets and grants for 31 AGF members. This information was collected at the end of the calendar year.
AGF June Program
On June 26th, AGF presented a panel of four nonprofit community leaders who discussed the current economic state of nonprofit organizations in Arizona. Panel members included Patricia Lewis, ASU Lodestar Center for Philanthropy and Nonprofit Innovation; Patrick McWhorter, Alliance of Arizona Nonprofits; Dana Naimark, Children's Action Alliance; and Brian Spicker, Valley of the Sun United Way.
Click here to link to the 2008 Governor's Survey of Arizona Nonprofit and Faith-based Communities.
AGF Members may access the program video by logging in and going to the Resources page to link to Program Videos.
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AGF Funder Survey Results (coming soon)
Piper Trust Announces Second Round of Community Relief Grants for Maricopa County Nonprofits
Virginia G. Piper Charitable Trust today announced a second group of Community Relief Grants, part of a $1 million commitment to aid Maricopa County nonprofits providing direct assistance to the community.
Arizona Community Foundation to Match Donations for Basic Needs
The Arizona Community Foundation will match donations to help provide Arizonans with shelter, heat, food, clothing, and counseling as the current economic downturn puts more individuals and families in distress. ACF will match contributions to its Basic Needs Fund dollar for dollar, up to $50,000. Gifts and the match will go to qualified nonprofits providing for these basic needs throughout Arizona, with preference given to efficient, strategic collaborations among nonprofit partners.
2nd Trust Shifts Focus to Area's Urgent Needs
Eugene Scott, The Arizona Republic
Nina Mason Pulliam Charitable Trust will not be accepting capital campaign grant applications in 2009, and will focus funds toward the Valley's emergency needs instead.
Posted 11/23/08
Piper Trust Provides Community Relief Grants
Piper Trust has committed to providing $1 million to community relief grants directed at Maricopa County nonprofits that provide direct assistance to the community. This funding will be directed toward especially vulnerable populations including families who are working to keep their homes, children, and older adults. Posted 10/28/08
Piper Trust has created a website entitled Greater Phoenix Community Relief to direct donors to nonprofits that work to improve the quality of life in Maricopa County. Click here for more information.
Southern Arizona Grantmakers Respond to Economic Crisis
Steve Alley, President/CEO of the Community Foundation for Southern Arizona blogs about "A Conversation with Nonprofit Organizations about the Economic Crisis." Posted 10/27/08
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Council on Foundations Communications to Funders
Council on Foundations Open Letter
Council of Foundations distributed a letter to its colleagues in regards to their recommended response the current economic situation. Click here to read the letter.
Nonprofit Quarterly Response to Open Letter
Like many, the editors of Nonprofit Quarterly were disappointed in the Council on Foundations' open letter to its members about what they and other foundations should do during this time of national and global economic distress. Click here to read the letter NPQ wishes the Council had sent.
COF Report on Giving During Economic Downturn
According to a Council on Foundations survey of more than 300 foundations and corporate giving programs conducted during April, the philanthropic sector is providing broad support for families hit by the current economic downturn. In the first of a series of research studies on the relationship between philanthropy and the economy, the survey shows that the vast majority of foundations (86 percent) support grantmaking that aids families, provides human services, assists lower income populations, and/or supports economic development. Click here (pdf) to read the full report.
However, the National Committee for Responsive Philanthropy says this report "raises more questions than insights" because it is based on self-reports, had a low response rate, and community foundations were overrepresented in the respondents. This last fact is troubling to NCRP because community foundations are more likely than family foundations to do this sort of grantmaking, and because the COF report found that 51% of community foundations would decrease grantmaking in the coming year. Thus, the report might suggest "a reduction in foundation giving aimed at benefiting the economically disadvantaged." Click here to read NCRP's full posting.
The COF report also garnered media coverage: click here for an article in the Chicago Tribune, and click here for a Philanthropy News Digest article.
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Courtesy of
Donors Forum:
Strategies for FundersBe transparent about your grantmaking priorities and levels so that nonprofits can plan accordingly. Give grantees ample notice if a grant will be an exit grant, or the last one the grantee can expect.
Fund operating expenses, and support the efforts of nonprofits to establish an operating reserve. In this economic climate, grantmakers should shore up their investments in current grantees with less restrictive and more multi-year grants. Grantees don't have a lot of time or money these days to apply for funding, so try to offer a faster turnaround, less formal process, and operating support.
Consider a long-term strategy of awarding grants based on the previous 12 trading quarters (a "trailing average") to create a buffer against a changing economy.
Support capacity-building efforts so that nonprofits can develop healthy infrastructure. Offer tools and information on developing a planned giving program. Funders can also give grants that can be used to generate matching funds, whether from a new or existing pool of individual donors.
Consider giving priority to organizations that primarily serve low-income communities and to organizations that are meeting unique or very basic needs, and which, without grant support, would close their doors.
Grantors are also encouraging and facilitating mergers and partnerships that help grantees reduce expenses. The Chicago Community Trust, along with The United Way of Metropolitan Chicago, recently committed to funding a partnership of nine large human service agencies that will consolidate back-office operations.
Continue to support and conduct advocacy.
Advice for Your Grantees
Have a development plan, and make sure it includes contingency plans for lean times. Avoid large investment in fixed assets and infrastructure, such as a building purchase, new hires, or expansion of services. If growth or retrenchment is likely, nonprofits need to work with funders and board to build a cushion to allow flexibility and course corrections.
Develop a diverse revenue stream and explore new revenue possibilities. If a period of inflation ensues, the best nonprofit strategy will be to push toward earned income, which is a much more reliable source - and a potentially richer source - than foundations or corporations.
Try not to cut development budget or activities.
Stay in touch with donors: remind them of the organizational mission, and why it's important to keep funding in uncertain economic times. For instance, social service organizations can experience cuts in government funding and a longer reimbursement period; they also typically experience a greater demand for services during economic downturns.
Two simple steps nonprofits can take to lessen the likelihood of reduced giving by current individual donors are sending out pledge reminder cards or emails, and offering to renegotiate a longer pledge payout period. It's also important to remind individual donors to check with their employers about a matching gifts program.
Remain diligent in practicing good governance and adhering to best practices.
Cut expenses: take advantage of work-study employees from local universities to assist with clerical and technology work, ask staff to carefully watch expenses and cut out unnecessary spending, or look into sharing office space, resources, or back-office functions with other organizations.
Ask current board members for additional contributions during difficult times, and reach out to new board or committee members who can bring in resources.
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- Arts groups feel money pinch as donations slide, Jahna Berry, The Arizona Repbulic, 1/6/2009
- COF Economic Xchange (http://www.cofinteract.org/economy) - A collaborative intiative on how the current economy impacts philanthropy.
- "Making Informed Decisions in Uncertain Times" to show how Community Foundations of all shapes and sizes are responding to the uncertainty in terms of budgeting and adjusting their revenue approaches and cost considerations. Read more or read the white pages.
- Extending a Helping Hand: Foundations retool their grant-making plans as the economy declines, From the Chronicle of Philanthropy, November 13, 2008 (Premium subscription required).
- Nonprofit Boards Urged to Focus on the Challenges Posed by the Economy, From the Chronicle of Philanthropy, November 13, 2008 (Premium subscription required).
- Suzanne E. Coffman, "Fasten Your Seatbelts: It's Going to Be a Bumpy Giving Season," GuideStar, November 6, 2008.
- Paul Brest and Hal Harvey, "How Grant Makers Should Respond to Hard Times," The Chronicles of Philanthropy. November 4, 2008.
- Shawn Zeller, "Think Tanks Need Fuel," CQ Weekly, November 1, 2008
- The Foundation Center has developed a new online feature, "Focus on the Economic Crisis," which provides a wide array of resources to help nonprofits and foundations alike as they face the challenges of an unstable economy. October 31, 2008
- Scott Bittle and Jean Johnson, "In Hard Times, Philanthropy Can Lead the Way," The Chronicle of Philanthropy. October 30, 2008.
- Corporate Giving in a Tough Economy: 5 Reasons Why
- TPI: Staying Strategic in the Face of Uncertainty
- Steven Lawrence, “Past Economic Downturns and the Outlook for Foundation Giving,” The Foundation Center, October, 2008
- Bill Zlatos, “Foundations tackle financial meltdown,” Pittsburgh Tribune-Review, 10/20/08
- Craig Karmin and John Hechinger, “Crisis Shakes the Foundations of the Ivory Tower,” The Wall Street Journal , 10/17/08 (subscription required)
- Larry Ottinger, “Lessons for Charities Amid the Financial Crisis,” The Chronicle of Philanthropy, 10/16/08 (subscription required)
- Ralph Smith and Steve Gunderson, “Grant Makers Urged to Respond to Financial Crisis,” The Chronicle of Philanthropy, 10/13/08
- Rick Armon, “Foundations pinched by markets expect to give less,” Akron Beacon Journal, 10/11/08
- Bryan Walsh, "Charities are Bracing for a Long Hard Winter," TIME Magazine, 10/10/08
- Staff Writer, “Charitable Giving Might Not Melt Down, Philanthropy Scholar Predicts,” The Chronicle of Philanthropy, 10/8/08
- Jane Lampman, "Signs that, amid tough times, Americans will keep giving," The Christian Science Monitor, 10/27/08
- Discussions: Grantmaking During Difficult Times
What should foundations do to meet the needs of charities facing a potential drop in donations and government support? Find ideas for grantmaking during a recession from a Chronicle of Philanthropy online discussion transcript. - Five Recommendations for Nonprofits in a Recession
Review five recommendations for nonprofits in a recession from the Nonprofit Finance Fund and access a press conference recording that discusses them in further detail. - Foundations Support Families Hit by Economic Downturn
Find out how foundations are responding to the economic downturn and subprime mortgage crisis and how they anticipate these events might affect their grantmaking from a Council on Foundations survey. - Giving in a Time of Less
Find advice for funders about how to give in a time of shrinking resources from Wise Philanthropy. - Giving in Times of Recession & Crisis
How does a national crisis or recession affect giving? Explore the historical relationship among giving, crisis and recessions from Philanthropy Matters. - How Donors Forum Partners Are Dealing with Economic Uncertainty
Find sample grantmaker experiences during the anticipated economic downturn and the steps they are taking to cope with them from the Donors Forum. - A Year of Slower Growth
Chronicle of Philanthropy article detailing the economy's impact on foundation assets and giving, but also how foundations are responding by trying new ventures. - Giving in Tough Times
Family Giving News issue dedicated to how your family foundation or fund can help struggling nonprofits and weather an economic downturn while still making a difference. - The State of Giving
Chronicle of Philanthropy discussion on how economic changes are affecting our sector.
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- Network for Good has released The 2008 Online Fundraising Survival Guide: 12 Winning Strategies to Survive& Thrive in a Down Economy (PDF)
- Nonprofit Economic Vitality Center, National Council of Nonprofits - A free, online clearinghouse of resources designed to help nonprofits cope with the multiple challenges created by a faltering economy.
- Nonprofit Boards Urged to Focus on the Challenges Posed by the Economy, From the Chronicle of Philanthropy, November 13, 2008 (Premium subscription required).
- Paul Schmitz, "In a Successful Campaign: Lessons for Nonprofits," The Nonprofit Quarterly. November 2008.
- Opportunities in Lean Times, Fieldstone Alliance.
- Coping with Cutbacks: The Nonprofit Guide to Success When Times Are Tight, Fieldstone Alliance.
- Chris Narducci, "As Money Disappears: What Nonprofits Can Do," City Limits.
- Managing Through Tough Times: 7 Steps - Resources provided by The Bridgespan Group.
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