Tuesday, April 1, 2008

Finance and Commerce

Kendall Anderson of Finance and Commerce writes an insightful article entitled, "Nonprofits aim to stay afloat in tough economy."

So, what will keep Twin Cities’ nonprofits afloat and effective in today’s choppy economic times?

Innovation, strategic partnership and “out of the box thinking,” said Kate Wolford, president of the McKnight Foundation, the state’s largest private foundation.

She and other leaders in the local nonprofit sector spoke this week about the tough economy and its impact on nonprofits at an event hosted by the Minneapolis Federal Reserve Bank of Minneapolis.

The nonprofit sector, which represents a greater percentage of Minnesota’s economy than the sector does nationally – 10 percent here vs. 8 percent in the U.S. – typically feels the bulk of the impact of a recession a year after it hits.

When a tough economy results in lower investment returns for foundations, a corollary is often that the people and entities that normally give money to nonprofits to do the bread-and-butter work of alleviating poverty and improving an area’s quality of life have less to give.

Read the full article here.

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