Friday, October 24, 2008
The October 24, 2008, issue of the Chronicle of Higher Education reports that corporate giving to colleges and universities will likely fall in the near future, especially for matching fund programs and corporations that file for bankruptcy. Here is an excerpt from the article:
Kettering University isn't the only institution seeing changes — including some declines — in corporate giving. As the economy enters a recession, those who follow philanthropic trends expect such giving to drop, especially among companies that are filing for bankruptcy or are being acquired.
The question is, By how much will donations fall? Data gathered by GivingUSA Foundation data for the past 40 years show an average 1.6-percent decline in donations by corporations to all charities during years with recessions that last eight months or more (and an average 1.9-percent drop in total giving for education during these years). One expert expects worse, predicting this economic decline will cause corporate giving to all nonprofit groups to go down at least 10 percent.
At the same time, philanthropy experts say, companies weathering the turmoil will most likely continue their philanthropic giving, including the donation-match programs, which are seen as an employee benefit that raises workplace morale. Although General Motors, which gave $657,000 to degree-granting institutions and libraries through matching gifts last year, discontinued its matching program on October 1, two dozen companies contacted by The Chronicle said they were continuing to match employee donations. General Motors says it will continue giving to education through its foundation.
For the entire article, see "Colleges Brace for Drop in Corporate Giving" in the October 24, 2008, issue of the Chronicle of Higher Education.