Could The Stimulus Package Hurt Some Nonprofits?
Some unintended fallout from President Obama's economic stimulus package may be fewer donations to charities. Nonprofits have already been facing tough times in recent months, some because of their association with Bernie Madoff, some simply because of the economy. Those who are making less money are giving less money, a situation that could be exacerbated by the economic stimulus package which bars firms that accept federal bailout funds from paying their top earners exorbitant bonuses. The Wall Street Journal reports that Americans gave more than $300 billion to charity in 2007 and that much of that may have come from the big bosses on Wall Street. Some nonprofit leaders are worried that the financial restrictions imposed by the stimulus package could mean that executives will give less. Some of the richest executives also funnel money through private foundations. Even executives in companies that aren't accepting bailouts may feel less inclined to donate because of the fear that their own financial situation is far from secure. The trend isn't just affecting New York charities. In Detroit, museums, shelters and other nonprofits are struggling without the largess of the executives at some of the big auto firms. While the stimulus package will offer support for some nonprofits those who've been depending on the big salaries of others may be preparing for lean months ahead.