Opinion: Nonprofit Groups Should Expect a Lean Year

This year could be a lean one for nonprofit organizations, as the economic slump may cause more Americans to give less to charity than in recent years, writes Daniel Gross, in a column in Slate.

Mr. Gross discusses data by Giving USA, which found that charitable giving fell in recession years, such as in 1980, 1987, 1990, and again in the most recent year the economy performed poorly, 2001. He cites two examples to show how charities are already suffering this year: A recent gala for the Robin Hood Foundation took in nearly 22 percent less money than in 2007, and donations to the Salvation Army are down from 2007.

Robert Evans, a fund-raising consultant, says donations are likely to be slow to recover even after the economy improves.

Charitable giving is “a lagging indicator for a number of reasons, not the least of which is the fact that in the minds of some, philanthropy is a luxury,” Mr. Evans tells Slate. “You pay your bills first, and then start making charitable gifts.”