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May 17, 2009

European Foundation Centre
Coping With the Recession: Grant Makers Consider Options

Like their counterparts in the United States, grant makers in Europe are also wrestling with how best to carry out their missions during a global recession.

At one session, grant makers from Belgium, Denmark, and elsewhere described their experiences as their assets have fallen.

Speakers explored options in the current economic climate, including mergers, spending all their assets to help meet immediate needs, and increased collaboration across borders.

Luc Tayart de Borms, managing director of the King Baudouin Foundation, in Brussels, said that his foundation — which plans to spend $47-million this year — has decided to spend that sum every year through 2011, but that he knows doing so could eventually dig into the fund’s endowment.

“We have set aside cash for three years of expenses, but we will have to also consider given scenarios, and work with them,” said Mr. Tayart.

And when it comes to dealing with the crisis constructively, Nicolas Borsinger, executive director of the Pro Victimis Foundation, in Geneva, said too many small, poorly equipped, and inefficient funds operate in Europe.

So just as nonprofit groups are sometimes told by grant makers to consider mergers, Mr. Borsinger said that the possibility should also be an option for struggling organizations of any type.

Mr. Tayart reminded his colleagues that foundations have an “ethical obligation” to not merely perpetuate their assets, but rather ensure support for international and other critical needs.

“We have to show that we are there and sensitive to the needs of society.”

— Marty Michaels

Sunday May 17, 2009 | Permalink

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