April 13, 2008
Charitable Recipients of Bear Stearns Largess Must Now Look Elsewhere
The New York Times reported on April 12, 2008, that charities that once benefited greatly from corporations that did well last years (like Bear Stearns), will now have to look elsewhere and diversify their donations sources in the wake of the U.S. financial crisis. Here is an excerpt from the article:
Having come off a stellar year for donations, the charities seem to have adopted a mood more cautionary than dire. But they are looking at ways to put pressure on longtime donors and reach out to new ones even as they brace for fewer contributions directly from corporations.
Charities are generally unwilling to cut prices for benefits, even when things get grim. “We don’t like to put the events on sale,” said Stephanie Astic, whose Stephanie Astic Productions organizes fund-raisers that are largely dependent on corporate giving. “But I think everybody is starting to freak out. At the end of the day, you have to throw the net out to a wider group of people.”
. . .
Based on the rule of thumb in philanthropy — that 90 percent of the money is raised from 10 percent of the donors — the very wealthy can expect to be receiving more and more requests. Some smaller charities, without well-established connections, will probably suffer in the tighter giving environment. Perhaps the most vulnerable are those that were large recipients of Bear Stearns money.
For the entire story, see "Charities Seek Donors to Replace Wall Street" in the April 12, 2008, issue of the New York Times.
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