Its pretty obvious that nonprofits will be affected as we encounter this economic downturn.  The question is, how much?  Many articles have detailed the fact that donors will be likely to give less, less often, and that although the effect might not be drastic, nonprofits will see a change.  And even if the economic climate doesn’t outright cause donors to give less, it might cause them to think they should – a great excuse for nonprofits to make an even more compelling case for their need.

An article in the NY Times today discussed a similar issue – the plummeting of stocks affecting corporate giving. For large companies that give based on their assets, this could might be the change in charity everyone is predicting. Layoffs, bad news and tough times – how could it not? It’s mentioned that nonprofits might have to look to other large donors, whose 10 percent of the donor population provide about 90 percent of funds, in order to meet their needs.  Will this change in the market really affect nonprofits in the long run? Or is it a premature prediction, an overreaction to the economic situation?  It will be interesting to keep an eye on the situation to see affects – benefits of not.