Politics and the Economy

THE ECONOMIC TURMOIL has touched large and small nonprofit organizations alike, cutting into the value of endowments, hampering fund raising, causing cutbacks in grants and programs, and making it difficult for many to meet their budgets.

TAX RULES are always a consideration in raising money for charity, but the presidential race and the possibility that the rules could change are complicating things this year.

THE RESCUE PACKAGE passed by Congress to shore up the ailing financial system contains several tax breaks for donors and volunteers, including a provision covering gifts made from individual retirement accounts.

SOCIAL-SERVICE CHARITIES, especially food banks and emergency shelters, are struggling in the face of the looming recession to meet an unprecedented demand for help.

BOTH PRESIDENTIAL NOMINEES have a background in public service and both have proposed expanding national service, leaving many charity leaders optimistic about the prospects for their work no matter who wins.

SEN. BARACK OBAMA held Harlem Children’s Zone up as a model for alleviating poverty, and now the charity wants to be ready with a plan should the Democrat win the White House.

THE FEDERAL ROLE in assisting the work of charities is the topic of intense debate now that a new administration is imminent. Much of the discussion is focused on proposed “social investment funds.”

SEN. JOHN McCAIN would increase the number of participants in national-service programs to 250,000 and hold “volunteerism summits”: a summary of the Republican candidate’s views on issues of interest to the nonprofit world.

SEN. BARACK OBAMA has proposed the creation of a Social Investment Fund Network and would double the size of the Peace Corps: a summary of the Democratic candidate’s views on issues of interest to the nonprofit world.

OPINION

Handling Fiscal Stress
Charities need to adapt to the tough economic realities.

Nonprofit Campaigning
Charity officials must be careful as they express their views ahead of Election Day.

Business and Charity
Philanthrocapitalism is an oxymoron, and a new book on the theme muddles important issues.

Lessons From the Financial Crisis
Nonprofit leaders need to build their understanding of the economy if they hope to serve the nation’s most vulnerable.

Back From the Brink
A prominent arts leader explains how organizations can pull off a financial turnaround.