Charities Brace for Challenges From Jittery Stock Market
Chronicle of Philanthropy, 9/6/07
The volatile stock market has not yet caused any major problems for charity fund raising, but experts warn that continued ups and downs or a sharp drop in stock values this fall could hurt nonprofit groups — especially since some charities raise the bulk of their donations in the last quarter of the year.
“A big market downturn would certainly pose problems for both capital campaigns and big grant requests,” says Melissa A. Berman, president of Rockefeller Philanthropy Advisers, a New York nonprofit group that helps foundations and wealthy donors manage their giving.
What’s more, she says, “there could be trouble ahead for charities even without a sharp dip in stock values. The real challenge is intense market volatility, which creates a lot of uncertainty. Uncertainty makes many people hesitate to make a commitment.”
Problems in the housing market, including an increase in the number of home foreclosures have caused jitters in the stock market, with the Dow Jones industrial average plunging by 1,000 points or more on a single day in August and stock prices declining by as much as 10 percent.
Some fund raisers are bracing for the possible impact of an economic downturn.
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