In Uncertain Times, Donors Hold Back

By law the foundations must make a required minimum distribution each year, she said, based on assets in the previous year, even though for most people, those assets have shrunk. Some families are responding by adding more money, she said, but others see no choice but to reduce outlays.

“One of our clients cares deeply about three organizations — his alma mater, the medical center that cared for his mother, and his church,” she said, so “he is staying the course with his most valued groups and cutting back on others.” Some donors are focusing on children’s services and human services, Ms. Philp said, because those are areas where they fear government support is likely to decline as state and local governments face budget deficits.