Feeling the Squeeze: Charities and the Economy

THE YEAR-END GIVING SEASON that just wrapped up was an important bellwether for 2009, and the results were very mixed.

NONPROFIT GALLERIES AND THEATERS are bracing for a tough year that could see the closure of a number of small arts groups.

THE CREDIT CRUNCH at the heart of the country's economic downturn has been particularly hard for charities, many of which rely on lines of credit to manage cash flow.

NONPROFIT LEADERS hope President-elect Barack Obama and the new Congress will devote at least part of their much-anticipated stimulus plan to setting people to work on the country's most pressing social problems.

AT LEAST 41 STATES and the District of Columbia expect budget shortfalls this year, grim news for charities that rely on government grants and contracts.

IN SOUTH FLORIDA, the Community Foundation of Broward was better prepared for the recession than many, due in part to the slow progression of economic trouble in the state.

AT WORLD CONCERN, a Christian relief group, the financial picture at the end of the summer looked promising; then came October, and a 30-percent drop in donations.

TICKET SALES and donations at the Charleston Symphony Orchestra declined sharply in the fall, a problem made worse by management missteps during easier times that left the group vulnerable to an economic slump.

THE FOOD BANK FOR NEW YORK CITY ended 2008 better than expected thanks in large part to generous help from two foundations, but the difficult winter months are still ahead.

GRANT MAKERS have started to respond with emergency funds to help charities cope.

Video: The Food Bank for New York City balances increased demand with a rocky economy.

Perhaps no other year-end fund-raising season has been watched as closely and nervously as the season that closed on December 31, 2008. The economic meltdown has many organizations worried about their future -- and many groups faced a frantic push at the end of 2008 to keep their coffers filled into what is expected to be a difficult 2009. The Chronicle followed several groups through their search for year-end gifts from recession-weary donors and to find out how they are going to drum up help from private and government sources.

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