A new report just released by the Foundation Center says that in 2010, foundation giving will drop more than was predicted earlier this year. Half of 583 grantmakers surveyed said they will keep their giving steady at 2009’s reduced levels. Of the rest, 26 percent expect to decrease their giving, 17 percent will increase it, and 7 percent were unsure.
Even though the stock market has been on the rise, gains made by foundation investments won’t make up for the steep financial losses of 2008. And since most foundations base their giving on a rolling three-year average of their asset values, it will be a few years before their giving can start to rise.
This is another crucial reason why nonprofits need to focus more on individual giving. The other one, in case you haven’t heard us hammer it home, is that 88 percent of all charitable giving comes from individuals.