Winter 2009

The nation is in the midst of an economic crisis that is bringing a sharp increase in the need for human services. 

At the same time, nonprofit organizations are facing funding cuts.  Private donations, federal and state funds, corporate contributions and foundation grants – all are likely to decrease in 2009 and beyond. 

The American Savings Foundation is a private foundation, so our contributions budget is directly connected to the value of our charitable endowment, which is diversely invested in the financial markets.  For each of our first 12 years, the Foundation’s assets grew.  Last year our endowment lost value significantly, although less severely than the overall stock market. 

In 2008 we awarded nearly $3.6 million in grants and scholarships to the community.  In 2009 our contributions budget will decrease to $3.3 million, and in 2010 – depending on how the markets affect our endowment – it may drop well below $3.0 million. 

Over the years we have contributed over $25 million in grants and scholarships.  The Foundation is absolutely committed to continuing to invest in children, youth and families through both program and capital grants.  We plan to continue to fund our After School Initiative for Middle School Youth and support the New Britain Youth Network.  We plan to continue to fund scholarships for current students as well as award new scholarships. 

While we do not place limits on requests for renewed grant support, renewals are never automatic.  It will remain our practice to review every request on its merits to make the best possible funding decisions.  In an effort to improve our grantmaking work, we recently conducted a survey of grant-seekers that gave us valuable feedback.  As a result, we will soon provide more information on our website to help agencies better understand our guidelines and priorities. 

Given the overall funding environment for nonprofits, this may be an opportunity for consolidation at both the program and organizational levels, involving extensive resource sharing and partnerships.  The Foundation will look to support creative and innovative ways for organizations to work together to make tough decisions, maintain critical services, cut costs, weather the economic storms, and emerge stronger. 

As always, I welcome hearing from you.

David Davison
President & CEO
American Savings Foundation