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Introduction
On November 6, Associated Grant Makers hosted approximately 30 funders for a conversation about the current economic crisis, how funders were reacting, what questions they had for each other, and what types
of follow-up conversations and actions they would like AGM to undertake.  The following summary does not attempt to report the conversation verbatim.  Rather, it provides an overview of the key themes and issues that were raised during the conversation.

If you have questions about this conversation, AGM’s other planned activities and resources to help funders think about and react to this economic crisis, or the work that AGM is doing with our nonprofit Partners, please contact Miki Akimoto, 617-426-2606 x17 or Ron Ancrum, 617-426-2606 x13.

Funder Assets and Spending Projections

• Based on informal responses around the table, local foundations’ assets are down 10-35% depending on the funder.
• There will be a variety of impacts seen in spending, as there are different approaches being taken to spending rules.
• Some funders re-evaluate every year based on asset levels at a certain point in the previous year.
• Some funders are using a multi-year/multiple trailing quarter average to calculate spending.
• Other funders are taking an approach that 5% is the floor, and may spend a considerably higher percentage of their current assets.
• Nationally, there appears to be a number of foundations who are slowing or stopping new grantmaking; often this is due to multiple year funding commitments that the foundations want to meet, so that new grants cannot be made.

What Funders are Doing

• Several funders are in the process of reaching out to current grantees and/or applicants to determine if some or all of their grants (applications) need to be redirected from project work to more flexible dollars.
• One funder, who had an application deadline right in the middle of the stock market’s largest crash, has contacted all applicants to see if they want to withdraw their applications or ask for funding for other purposes.
• Several funders talked about the importance of asking grantees, “What do you need?”  And providing flexibility based on the responses to that question.
• Several funders are planning to send letters or other communications to their grantees to let them know where the foundation will be going with their funding in the coming year.
• One funder is asking grantees specific questions about things like “Do you have a payroll service?” as a way of gauging whether there is a risk of a grantee not paying payroll taxes due to cash shortfalls.

Funder Perspectives

• There was a lively conversation about the need, in times like this, for funders as organizations, and as supporters of key grantees, to not turn away from public policy work and funding.  One funder spoke about their success in working with the State government prior to the first round of 9C cuts this year to help protect some key programs related to healthcare access.
• There are a number of nonprofits looking at consolidating back office operations and/or merging.  Funders need to think about how to support that work, which is not inexpensive, nor necessarily a thing that can happen rapidly.
• Some funders felt that there were opportunities for better collaboration and communication among funders during times like these, particularly to make sure that scarce resources are put to good use.
• One funder pointed out that this is a good opportunity to work with community coalitions that are already engaged in advocacy and public policy.
• There is a concern that agencies that serve certain vulnerable populations (e.g., immigrant-led organizations serving recent immigrant communities) will be at particular risk during these times.  Funders may want to pay close attention to these organizations.

Resources/Suggestions

• AGM has compiled a set of links and resources, which is being updated frequently, with news and information related to the charitable sector and the economic crisis. View News and Resources Page.
• On November 19, 2008, AGM will be convening a meeting of our nonprofit Partners to get input and suggestions from them about the impact of the fiscal crisis, to date, on their operations, and to hear from them about what the critical needs in their organizations are. View Program Details.
• Register for the AGM's Program on “Understanding Your Foundation’s Assets” – December 3, 8:30 am – 10:30 am.  More critical information than ever.
• Is there an opportunity for AGM or Mass Nonprofit Network to convene banks to talk to them about the importance of credit and support for nonprofits during this time?
• There was a suggestion that AGM write a letter to its members encouraging funders to “dig deeper into their pockets” during this time.
• AGM is willing to coordinate and help conduct out reach for any other funder meeting on this topic.  It would be useful to have a central calendar of these types of convenings, as so many are being put together now.
• For those funders interested in public policy, there is the annual Foundations on the Hill Day coming up in March.  More information may be found at: http://www.foundationsonthehill.org/  See Miki Akimoto for more information.
• There was a suggestion that grantees would benefit from training in how to develop contingency plans.  The Barr Foundation is working with the Nonprofit Finance Fund to develop a workshop on how to structure finances in these times.  This will be open to all.  Klare will get the information on that workshop to Miki to spread the word.  In addition, TDC was suggested as a group that could offer training in general contingency planning.

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