Things were already bad with individuals' donations being down. Now the sector that relies on corporate philanthropy is going to collapse. From the Boston Globe:
Wall Street was the epicenter of the brutal financial earthquake last week following Lehman's filing for bankruptcy protection, Bank of America Corp.'s move to acquire Merrill, and the government's bailout of AIG and takeover of Fannie Mae and Freddie Mac. But shockwaves are being felt far outside the corporate world to nonprofits that have grown accustomed to major support from commercial banks and investment firms. While smaller charities are struggling with immediate funding issues, those with endowments are certain to take a big hit with their investment portfolios. In Massachusetts, the financial services industry serves as the largest and most significant giver, according to the Boston Foundation, and the fallout could not have come at a worse time.
Even before last week, many of the nation's largest companies expected their donations to remain flat or decrease. The Chronicle of Philanthropy reported last month that of the 77 businesses that offered predictions for how much they would donate in 2008, 50 said their giving would remain the same as last year, including local stalwarts Staples, CVS, and Raytheon.
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