Sunday, October 26, 2008

British Charities Seek Bailout From Government

On Friday, October 24, 2008, The Chronicle of Philanthropy reported that British Charities, particularly hard hit by the failure of Icelandic Banks, are asking the British Government to bail them out.  The Charities have asked the Government to set up a $788 million emergency fund.

Below is a brief excerpt of the story:

As American charities suffer from the sour economy, nonprofit groups in Britain are arguably in worse shape, with charity leaders calling for the government to set up a roughly $788-million emergency fund to help struggling organizations.

Like others in Britain, a large number of charities were hit hard by the near collapse of the Icelandic banking system. Potential nonprofit losses due to the Icelandic problems are estimated at $189-million, reports The Guardian, a British newspaper.

However, so far the newspaper reports that the government minister who oversees nonprofit groups has rejected throwing them a lifeline.

Indeed, Patrick Butler, an editor for The Guardian, writes that charities need to be more forthcoming about financial losses if they want public support.

On the newspaper’s Joe Public Blog, he writes that only 13 charities have stepped forward to discuss their problems related to the Iceland banks, with many others preferring to stay quiet.

I find the final comments about the need for the charities to be "more forthcoming" interesting in light of the increased calls in the United States for greater transparency and fiscal accountability by U.S. Charities.  See earlier blog postings.

Please see the Chronicle of Philanthropy and The GuardianThe Guardian for the full story.

AMT

http://lawprofessors.typepad.com/nonprofit/2008/10/british-chariti.html

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