Nonprofits hurt by Lehman Brothers bankruptcy
This week’s upheaval in the financial sector could have an impact on non-profit organizations, according to an article in Crain’s New York Business' daily newsletter.Lehman Brothers Holdings Inc., which filed for bankruptcy on Monday, funded numerous nonprofit organizations to the tune of almost $40 million.
Non-profits in New York City could be among the hardest hit. About 22% of human service organizations, which make up the majority of the city's nonprofits, rely on foundations and corporations for at least half of their income, according to a study cited in the article.
It was already shaping up to be a less than stellar year for non-profits’ fundraising efforts before this week’s financial news hit, thanks to financially strapped consumers as a result of inflation as well as several distractions, including the presidential election and the Olympics.
