Carnegie
Corporation
of New York
Vol. 2/No. 2
Spring 2003
 


Foundation Roundup





Nonprofit Sector Pinched in Poor Economy
Results from a recent survey of U.S. charitable groups by GuideStar, an organization that compiles information about nonprofits, reveal that nearly 70 percent of America’s nonprofits reported decreased or static funding during the first ten months of 2002 as compared to the same period the previous year.

Many respondents related the decrease to the nation’s poor economic health, citing reduced grantmaking by both private foundations and corporate donors as a result of the downturn in the stock market, federal budget cuts that are taking a toll on social service initiatives and individual contributions that have declined as Americans have tightened their belts.

Hardest hit were organizations with annual expenditures of under $500,000. Sectors with the biggest declines included “Animal Related” (60%), “Housing, Shelter” (52%), “Human Services” (52%) and “Public, Societal Benefit” (52%).

More than 2,700 participants from public charities and private foundations participated in the survey. For more information, go to www.guidestar.org.