Saw This Coming a Mile Away

depression March 17th, 2008

The GOP notion that private charities can take the place of government in addressing social problems is about to be revealed for the myth it’s always been.

With layoffs, buyouts and cutbacks rippling through financial markets, charities that rely on donations from high-paid professionals are bracing for a slump.

Thirty percent of charitable giving comes from the richest one percent of the population which includes many Wall Street professionals, according FSG Social Impact Advisors in Boston.

“When the economy goes down people tend to tighten their purse strings, and oftentimes charity and philanthropy can be the first thing that is affected,” said Farrell, the executive director of Bottomless Closet.

Several charities will miss Bear Stearns Co, which agreed to be acquired by JPMorgan Chase & Co for $2 per share on Sunday.

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