Source: Minnesota Council on Foundations

Although the stock market has recently begun to stabilize, and many analysts now expect the overall U.S. economy to begin picking up in the second half of this year, the fallout from declining stock, credit, housing and labor markets in 2008 and early 2009 is likely to be felt by the philanthropic sector throughout 2009 and into the future.

To assess how grantmakers in Minnesota have been affected by the downturn and how they anticipate responding to community needs, the Minnesota Council on Foundations (MCF), in partnership with the national Council on Foundations (COF), administered a survey in March 2009 on the outlook for grantmaking this year. COF wrote the survey, collected the national data,1 and provided Minnesota-specific data to MCF for additional analysis. Although the survey instrument and respondents differed from those in MCF’s 2009 Outlook Report conducted in November 2008,2 the current report is meant to provide additional, complementary insights.Where possible, MCF made comparisons between similar questions.

Read the full report here.

As foundations, grantmakers, charities and donors move toward responding to the economy and the recession’s impact on institutional and personal investments, the Council is pleased to introduce Fiduciary 360 and their model for establishing a sound investment management hierarchy and investment management practices. The following are excerpts from three fi360 publications, Prudent Practices for Investment Stewards, Prudent Practices for Investment Advisors, and Prudent Practices for Investment Managers.

Download the Excerpt of Prudent Practices for Investment Advisors

For professionals who provide comprehensive and continuous investment advice including financial advisors, broker – consultants, investment consultants, wealth managers, financial consultants, trust officers, financial planners, and fiduciary advisers.

Download the Excerpt of Prudent Practices for Investment Managers

For organizations that manage separate accounts mutual funds, unit trusts, and commingled trusts.

Download the Excerpt of Prudent Practices for Investment Stewards

For persons who have the legal responsibility for managing someone else’s money, including trustees and investment committee members.

Blaine Aikin, CEO of fi360, was a featured speaker at the Council’s Annual Conference session Riding it Out: Investment Strategies for Economic Uncertainty in Atlanta in May 2009. Mr. Aikin recently conducted a webinar for the Council in February, 2009, How to Meet Your Fiduciary Duty to Monitor Your Investments, which is available from the Council’s website. The Council will also be working with fi360 as we work toward re-launching our Glossary of Investment Terms. We hope to publish this glossary this summer, 2009.

The Council’s publication on this website is for informational and educational purposes with the express written permission of fi360. Fi360 reserves all rights to these publication excerpts and images. ©2008 Fiduciary360 (fi360.com). All rights reserved. Copyright and reservation of all rights in the publication Prudent Practices for Investment Managers also lies with the Centre for Fiduciary Excellence (CEFEX) and fi360. ©2006 CEFEX (www.cefex.org) and Fiduciary360 (fi360.com).

Source: United States Department of Labor, Bureau of Labor Statistics

The number of unemployed persons (14.7 million) and the unemployment rate (9.5 percent) were little changed in June.  Since the start of the recession in December 2007, the number of unemployed persons has increased by 7.2 million, and the unemployment rate has risen by 4.6 percentage points. 

 Read the full summary here.

Source: Recovery.gov

The American Recovery and Reinvestment Act (ARRA) is an unprecedented economic stimulus package that provides about $787 billion in federal funding  to foster economic growth through the current economic crisis.  Authorized by the 111th United States Congress and signed into law by President Obama in February of 2009, the Recovery Act serves as a means to put money back into the states through social welfare provisions and other means.

Federal agencies are now reporting on a weekly basis the amount of Recovery Act funds that they are making available to the states.

To track your stimulus money, visit www.recovery.gov. or Track the Stimulus by state, now!

Source: Giving USA

U.S. charitable giving estimated to be $307.65 billion in 2008

Giving in worst economic climate since Great Depression exceeds $300 billion for second year in a row

Glenview, Ill. (June 10, 2009)—Charitable giving in the United States exceeded $300 billion for the second year in a row in 2008, according to Giving USA 2009. Donations to charitable causes in the United States reached an estimated $307.65 billion in 2008, a 2 percent drop in current dollars over 2007.

The 2008 number is the first decline in giving in current dollars since 1987 and the second since Giving USA began publishing annual reports in 1956, says the annual report on philanthropy, released today for the 54th year by Giving USA Foundation™. (www.givingusa.org) Revised estimated giving for 2007 was a record $314.07 billion.

Two-thirds of public charities receiving donations saw decreases in 2008. The exceptions were Religion, Public-Society Benefit and International Affairs. The other types of charities (or subsectors) examined in Giving USA are: Arts/Culture/Humanities; Education; Environment/Animals; Health; Human Services; and Foundations, says the report, which is researched and written for Giving USA Foundation by the Center on Philanthropy at Indiana University.

 Read the full press release

Resource: Arabella Philanthropic Investment Advisors

This brief, produced in collaboration with the Steans Family Foundation, explores nonprofit mergers and alliances (M&A) from a potential donor’s perspective. Recently, nonprofits and their funders have looked increasingly at M&A as a possible means to survive and even thrive despite the economic downturn. Our brief goes inside this trend, exploring successes, challenges, opportunities and special considerations for donors who may be interested in supporting nonprofit M&A.

Click here to download a pdf.

Source: United States Department of Labor, Bureau of Labor Statistics

Nonfarm payroll employment fell by 345,000 in May, about half the average monthly decline for the prior 6 months, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  The unemployment rate continued to rise, increasing from 8.9 to 9.4 percent. Steep job losses continued in manufacturing, while declines moderated in construction and several service-providing industries.

The number of unemployed persons increased by 787,000 to 14.5 million in May, and the unemployment rate rose to 9.4 percent.  Since the start of the recession in December 2007, the number of unemployed persons has risen by 7.0 million, and the unemployment rate has grown by 4.5 percentage points.

Unemployment rates rose in May for adult men (9.8 percent), adult women (7.5 percent), whites (8.6 percent), and Hispanics (12.7 percent). The jobless rates for teenagers (22.7 percent) and blacks (14.9 percent) were little changed over the month.  The unemployment rate for Asians was 6.7 percent in May, not seasonally adjusted, up from 3.8 percent a year earlier.

Read the full summary here

CF Insights recently released its latest research report on the impact of the current economic crisis on the community foundation field, “Taking Informed Action in Challenging Times.” This report, funded in part by the Council’s Community Foundations Leadership Team, follows up on CF Insights’ original research on this topic published in November of 2008.

You are invited to participate in a free webinar on this topic on Wednesday, June 17th from 1 pm – 2 pm Eastern. You can register by for the webinar by clicking here.

The webinar will highlight the study findings, specifically focusing on the impact of the economic crisis on community foundation operating models, grantmaking & community leadership, and future sustainability.

Want to learn more about CF Insights?
Email Wendy Horton to schedule a demo or learn more about services.

Charitable groups working to aid nonprofits in tight economy, MSN Money, 6/5/2009: Despite the lagging economy, charitable organizations are finding ways to continue to support Phoenix-area nonprofits.

Helping Greenbelt Have A Strong Foundations, The Washington Post, 6/4/2009: For the farmers market and other community-based groups, the Greenbelt Community Foundation has provided a strong base of support, particularly in today’s weak economy.

A new blow to arts groups funded by automaker, The Detroit Free Press, 6/1/2009: The General Motors bankruptcy means that millions of dollars in philanthropy typically earmarked for Michigan nonprofit groups are unlikely to return anytime soon — if ever.

Foundation giving reached record highs in ’08, but drop feared in ’09, Investment News, 5/29/2009: Giving by community foundations reached a record level last year, but is expected to decline in 2009, according to a report released yesterday by the Foundation Center, a New York-based non-profit service research organization focused on philanthropy.

Foundations to give less in 2009 Philanthropy Journal, 5/15/09: Total assets for the foundation sector fell about 30 percent from a high of $682 billion at the end of 2007, and three in four funders saw their assets tumble by 25 percent or more, says a new report from the Council on Foundations, which surveyed 430 funders in March this year.

Nonprofits tap online networks to raise funds Philadelphia Inquirer, 5/15/09: Nonprofits across the country - more than 85 percent use social media, according to a new survey - want to replicate that success. In an economy where purse strings are triple-knotted, the strategy has particular appeal.

Foundation Leaders Made a Median of $134,680 in 2008, Says Survey The Chronicle of Philanthropy, 5/18/09: Foundation leaders received a median salary increase last year of 6.4 percent, outpacing the 4.4-percent increase for their employees, according to a new study of compensation at grant-making institutions by the Council on Foundations.

A Stream of Hope? The Chronicle of Philanthropy, 5/18/09: Like many nonprofit executives, Robert B. Jones has been scouring the fine print of the economic-stimulus law that was enacted in February. The legislation provided about $575-billion in federal money for projects to pull the country out of recession by creating and saving jobs — and charities are lining up to seek a piece of the pie.