Madoffed?

“What we have been affected by is the larger market condition — the scandal writ large, as it were,” Greacen said.

He said that by late 2008 it was clear that some foundations’ budgets were already shrinking, which indicated that 2009 would likely find foundations even tighter-fisted.

“It’s already been very competitive and, frankly, foundation budgets haven’t increased anything like as much as the need for foundation funding has gone up during the Bush administration,” he said. “And, in the 2006-8 period, we saw an awful lot of the discretionary funds available to progressive types going into the election, and for good reason, but there’s very little reason to think at this point that a lot of that might come back into the nonprofit world. It’s just not there.”

Greacen said EPIC will cope by continuing what it’s always been good at: reaching out to more people. That worked well, he said, during the group’s end-of-the-year appeal for donations — responses were up. However, the contribution amounts were, on average, lower. But that could be a good strategy.

“Frankly, I think the hope that we’ve got is probably not that different from a lot of groups — that we can find a way to reach more people and stay alive,” he said. “Kind of the Obama solution. More smaller donations make up for fewer big donations. Traditionally, for a lot for nonprofits, it’s easier to raise a budget by going to a few good donors or foundations — the risk of that strategy is amplified in a bad market, obviously.”

Still, smaller groups may have a glum future, nonetheless. Big groups like the Sierra Club, or the Natural Resources Defense Council, can shed some staff if they have to, Greacen said. Small groups like EPIC have so few employees, and such a high work load, that’s not an option. Some may merge with other groups or, as Greacen puts it, simply “wink out.”

“It was already hard times for little groups, and I think a lot of the smaller nonprofits are going to be in real trouble in the near term,” Greacen said.

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