Here’s another group that’s going to suffer because of the financial sector’s implosion: nonprofits.
Kate, who blogs at It’s Not Always About Money, had an "I told you so" moment last week as fiscal chaos reigned. She notes that months ago, she wrote that heavy reliance on a single donor, whether individual or corporate, was a very risky proposition for a
nonprofit organization.
Now groups that counted bankrupt Lehman Brothers as a, or the, major donor better have contingency plans in place, writes Kate, because making up those dollars will take
a lot of effort.
Bloomberg and Crain’s New York Business have more on this topic, and UK Fundraising looks at how it could affect charitable groups worldwide.
Howard Lake
Thanks for the link, Kay. The concern for nonprofits is twofold, I believe. First, as you say, there is the sudden demise of a corporate supporter. Shocking as that is, it should only have a direct impact, at least initially, on those nonprofits receiving grants from that company’s foundation.
More worrying is the second issue – thousands of individuals suddenly losing their jobs. Imagine the number of nonprofits whom Lehman Brothers’ staff supported with regular or one-off gifts. At the other end of the scale, think of the number of senior staff there who will have been major donors to some nonprofits.
So, worrying times not just for those nonprofits who received support from Lehman Brothers’ two foundations.