Will Wall Street Volatility Affect Nonprofit Donations?

We are starting to see stories in the media about nonprofit concerns as the roller coaster ride continues on Wall Street. An article in The New York Sun, and commented on by The Chronicle of Philanthropy, quotes several sources, including:

• Richard Jolly, chairman of GivingUSA said, "If the current volatility were to continue or if the markets were over the course of the year or end of the year to be in a down position, philanthropic giving is going to react in a similar way."
• Naomi Levine, executive director of New York University's George Heyman Center for Philanthropy and Fundraising said, "I would follow the market and ... try to persuade myself that it's going to settle and ... be all right. But at night when I go to sleep, I'd be worrying."

The Sun article suggests that some charities are diversifying investments and updating their lists of their best donors; and that grant makers are increasing the amount of grants to offset losses in individual giving. Sandra Miniutti, vice president of marketing at Charity Navigator said, "Exactly in the instances of market volatility, it's important that charities have rainy day funds and that they are financially stable."

What do you think? Do you see signs of slowing contributions? What are you doing to hedge against a possible future of decreased income? Use the comment section below to tell us your thoughts.