Wall Street Crisis Hits Corporate Donations December 23, 2008
Funding Tips & Trends
Corporations -- and some of their top executives -- are cutting back on their charitable donations as the economic recession pinches their bottom lines, the Wall Street Journal reported Dec. 1.
The meltdown on Wall Street has claimed a number of companies known for their charitable giving, such as Bear Stearns, Lehman Brothers, and Merrill Lynch. Also cutting back on donations are figures like Hank Greenberg, former CEO of American International Group (AIG), Las Vegas casino owner Sheldon Adelson, and even the Bill & Melinda Gates Foundation.
Fannie Mae and Freddy Mac gave a total of $47 million to nonprofits in 2007 but won't be making any charitable gifts until further notice as it undergoes a federal bailout.
"You can't give what you haven't got," said Greenberg, whose foundations are heavily invested in AIG stock, which has plummeted in value over the past few months.
Philanthropy usually weathers big economic storms, but unfortunately for charities the current crisis hit just as donors were planning their large year-end gifts, experts said. Most foundations say they plan to honor the pledges they've already made to charities but are cutting back on making future commitments.
