Illinois business leaders aren't the only ones bracing for a financial backslide in the wake of today's market meltdown. As Crain's reported today, anxiety is mounting among Illinois' social service organizations as they head into the holiday-giving season wondering how tough it will be to secure sorely needed donations.
"There's a lot of anxiety in the non-profit sector about what might happen," said Woods Bowman, professor in DePaul University's School of Public Service. "Typically when the economy isn't good most nonprofits don't tend to get a lot of donations."
A key indicator of trouble to come is news that donations to Catholic Charities fell by 18 percent during the fiscal year ending June 30. Crain's reports that this dip prompted layoffs at the organization. Other nonprofits that are feeling the pinch have resorted to program cuts.
The challenge has become so real that the nonprofit Donor's Forum of Chicago decided this spring to launch a Dealing With an Uncertain Economy page on its website. The Forum kicked off a series of articules under the same name with hopes of providing advice to nonprofit leaders as they cope with a tougher fundraising climate.
The Chronicle of Philanthropy reported this spring that foundations have increasingly stepped in to pick up the slack. But major reductions in federal and state social service grants, coupled with a decrease in personal giving, has created more need than even the Chicago Community Trust (CCT) can shoulder with its $114 million worth of giving each year, said Elizabeth Richter, vice president of marketing and communications.
CCT, the region's largest community foundation - with $1.8 billion worth of assets - was able to increase giving by six percent this year. Only time will tell how the market tanking today will impact next year's giving.
"We'll be evaluating this again a year from now," Richter said.
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