Donations from corporations are starting to dry up, as losses in the stock market mount and the economy slows, the Wall Street Journal reports. Some corporations have collapsed or been bought, while other companies are scaling back their charitable donations. Other institutional donors, including Wall Street banks, are also cutting back, and that could affect a slew of charities. According to the Conference Board, corporate donors gave some $15.7 billion to charity in 2007, with big banks trailing only pharmaceutical companies in total giving. This year’s figure is expected to be lower.
As many as 100,000 of the nation’s more than one million charities could fail during this downturn, said Paul Light, a professor at New York University’s Wagner School of Public Service. “I think we’re going to see a substantial number go under,” Light told the Journal. “There’s nobody on Capitol Hill who’s been talking about rescuing the nonprofit sector.”