There has been a lot of chatter lately in the news about the potential
impact on charitable giving of the current economic crisis. I notice that
the 08/09 budget calls for Q2 revenues of $3.5M., a total annual donation
revenue of $6M and an annual revenue of $7.3M.
Since the bulk of the annual revenue is to be acquired in this quarter, and
the world is currently engaged in a serious financial crisis, what
adjustments or contingencies has the Foundation planned to mitigate a
downturn in gift revenue? The actual spending budget has a built in cushion
of $1.3M, but the budget indicates that the cash reserve as of the end of
September was anticipated to be in the hole $752. With a negative reserve, a
threat to revenue and a very poor borrowing environment are the finances of
the organization still secure?
Thanks,
Nathan
[1]"Economy Expected To Take a Tole on Charitable Giving"
http://www.nytimes.com/2008/09/30/business/30foundations.html
[2]"In Tight Times, Many Nonprofits Feel the Pinch As Contributions Dwindle"
http://www.nytimes.com/2008/10/07/nyregion/07charities.html
[3]"Charities Are Bracing For Long, Hard Winter"
http://www.time.com/time/business/article/0,8599,1848864,00.html?imw=Y