US charities hit by recession's impact on spending

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Source: Reuters

By Michelle Nichols Michelle Nichols

NEW YORK (Reuters) – Thousands of small U.S. charities are likely to close this year as cautious donors and governments tighten spending and some states consider removing nonprofit tax breaks, experts said on Wednesday.

The nonprofit sector is preparing for this year to be harder than 2009 as the delayed effects of the worst U.S. recession hits philanthropic budgets, experts said during a panel discussion on "The New Nonprofit Reality."

"States are looking for any opportunity for tax revenue this year and nonprofits are increasingly a very big target," said Stacy Palmer, editor of The Chronicle of Philanthropy.

"Foundation leaders are very worried that this economy is not doing so well and it's time for caution, so the groups that they're supporting are the tried and true groups -- the universities, the hospitals."

Read more: http://news.yahoo.com/s/nm/20100324/us_nm/us_usa_philanthropy