Negatives and Positives for Foundations During the Coronavirus Pandemic

The coronavirus pandemic is having a wide-reaching impact on many areas of society. A recent article from The Non Profit Times examines how foundations and endowments are reacting to the virus.

A recent survey conducted by the National Education Policy Center’s (NEPC) Endowments and Foundations Practice Group examined 105 endowments regarding issues related to the coronavirus pandemic. Of the endowment and foundation managers surveyed:

• 55% expect a severe recession
• 41% expect a short recession with a strong recovery
• 61% are rebalancing portfolios
• 61% are actively working to reduce costs, expenses, and spending

Luckily, it is not all doom and gloom. In response to the coronavirus pandemic, a group of companies, foundations, and individuals have united to raise funds in support of community foundation-led relief. So far, more than half a billion dollars has been raised among a wide variety of foundations. The money is already being put to work in local communities. Some of the uses include:

• $175 million to nonprofits that are providing communities with food, shelter, and other basic needs, including funding for schools to purchase and distribute computers to students learning from home
• $44 million in grants and interest-free loans to social service, arts, and cultural nonprofits in New York City
• $92 million in additional funding for New York City
• $20 million to help those impacted by the coronavirus in New Jersey

While the pandemic and the accompanying market downturn are having a big negative impact, the rallying together of communities, donors, and foundations is encouraging. The article quotes, Hans Dekker, the president of the Community Foundation of New Jersey, who explains that, “In times like these, community foundations have a unique multiplier effect that yields greater support for people and communities in need.”

For further details, click here to read the article in full.