Posted on November 12, 2008

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Northwest Nonprofits Look for Ways to Stave Off Economic Crisis

As nonprofits in the Northwest face increasing demand and shrinking donations, some groups are being forced to scale back or find creative ways to overcome shortfalls, the Seattle Times reports.

Although organizations have become increasingly ambitious about solving global problems such as disease and poverty, the economic downturn is putting the squeeze on their pocketbooks. Indeed, many groups are facing the turmoil on two fronts: volatile food and energy prices and tightening credit have hurt the poorest people they serve, while shrinking assets in the affluent world are making it tougher to find donors.

To make matters worse, the financial meltdown has hit at the start of the busiest fundraising season for many nonprofits. Though it is too early to tell the full impact of the downturn, some groups, including the Seattle Foundation and Mercy Corps, are already reporting dips in donations compared to last year. The United Way of King County, which counted on significant funding from Washington Mutual before the bank's collapse, estimates it will raise about $110 million this year, down from $117 million last year.

To help address shortfalls, some groups may need to consider consolidating resources, sharing administrative services, or even merging, said Molly Stearns, senior vice president of the Seattle Foundation. Other groups are finding their own ways of addressing the crisis. World Vision, which usually receives 40 percent of its cash revenue between October 1 and December 31, is cutting back spending in its U.S. operations, delaying non-urgent travel, and is urging companies that are not in a position to donate cash to increase in-kind donations instead.

While Seattle-area donors are still giving, attitudes are shifting and more people are looking beyond their own interests, said Rick Beckett, CEO of Global Partnerships, which raised $560,000 during its annual luncheon in October — $50,000 less than it received last year. "A growing number of people are really looking for socially responsible and socially motivated investments," Beckett said. "[The economic slump] doesn't change the fact that people are getting more and more compassionate. There's less capital, but not less interest."

Heim, Kristi. “As Donations Drop, Nonprofits Forced to Get Creative.” Seattle Times 11/10/08.

Primary Subject: Philanthropy and Voluntarism
Secondary Subject(s): Community Improvement/Development, Human Services, Economic Crisis
Location(s): Northwest, United States

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