Recession hits charities' bottom line
Hands seeking help
TEXT OF STORY
Lisa Napoli: Now charities are worried about how recession will affect their bottom line. Marketplace's Nancy Marshall Genzer reports.
Nancy Marshall Genzer: The Committee Encouraging Corporate Philanthropy has invited CEOs of financial services companies to a forum on corporate giving today.
Executive director Charlie Moore says some have already told him they'll cut back on philanthropy. But Moore says most CEOs realize that's bad for a company's image.
Charlie Moore: You know, if Goldman Sacks is going to keep up, it's not likely that Merrill Lynch is going to say "Oh, well, we're going to stop."
But the Center on Philanthropy reports corporate giving falls by 5 percent during recessions.
Researcher Melissa Brown says new donors will be scarce, as companies hunker down.
Melissa Brown: The focus will be on preventing lay-offs as long as possible, that sort to thing.
Brown also says companies will be less likely to donate cash. Instead, they'll offer free products or services.
I'm Nancy Marshall Genzer for Marketplace.