Reuters: Thousands of nonprofits to close in 2010
March 26, 2010
As charities struggle with the current economic situation, nonprofit financial management
may have become more important than ever.
Thousands of small charities in the U.S. are likely to shut down this year as the government finds itself with a tight budget and donors cut back on giving as well, according to a recent Reuters
The report says that nonprofit fundraising campaigns are preparing for more difficulties than they faced in 2009 because of the delayed effects of the economic recession.
In an interview with Reuters
, Chronicle of Philanthropy editor Stacy Palmer says that state government cuts on nonprofit spending and new taxes that are being directed towards nonprofits are leading donors to forgo giving to smaller community nonprofits.
"States are looking for any opportunity for tax revenue this year and nonprofits are increasingly a very big target," says Palmer. "Foundation leaders are very worried that this economy is not doing so well and it's time for caution, so the groups that they're supporting are the tried and true groups - the universities, the hospitals."
Experts say the need for government accounting software
and nonprofit fundraising software
that help improve financial efficiency in both arenas may be greater now more than ever.