Alberta Ecotrust Foundation

 

Capacity Building

Surviving and Thriving in Tough Times

Dear friends and colleagues:

Organizations and individuals working tirelessly for environmental benefit are our most important partners in our efforts to protect and preserve Alberta's environment. Over the past few years, you have collectively defended environmental policies, informed and inspired a new generation of environmentalists, and proposed solutions to some of the problems we face.

In part because of these efforts, we now have the best opportunity in over a decade to make significant conservation gains. However, we also will need to partner through one of the most challenging situations in recent memory.

Unfortunately, the rapid and significant decline of our economy now presents us all with unprecedented challenges. Those of us in the philanthropic sector are grappling with the consequences of this economic disaster. According to the Council on Foundations, foundations have reported declines in asset values that average 28 per cent. Since foundation grantmaking budgets are often tied to the value of investment portfolios, many foundations decreased giving in 2008 and are decreasing giving further in 2009. Many corporate funders are also facing serious shortfalls resulting in decreased budgets available for charitable investments. Assuming the market doesn't rebound, continued cuts to grant levels are also likely in 2010.

What does this mean for your organization?


We can't say for certain how many groups will face a significant crisis, but it's an unfortunate fact that some organizations may not survive.

We also know that planning pays off. Recent experience shows us that organizations that act decisively to address and adjust their financial positions are the ones that suffer least.

We know that many organizations have already taken steps to respond to the real or potential impacts of current economic conditions. We encourage you to take such steps now to avoid more severe issues later this year. As we all face these issues, we believe we can help each other.

Our intent is to offer proactive advice without becoming unnecessarily alarmist. We hope this inspires a robust conversation between the staff and board that helps you plan – and act – to assure the viability of your organization and its mission.

We appreciate all of the great work that you've done through the years. We have posted this letter because we are your partners and collaborators. Your success is our success. We look forward to hearing what steps you've taken to ensure that your organization is sustainable and effective for many years to come.

**Much of the text in this letter was borrowed from an open letter from American Northwest Environmental Funders. They have very eloquently captured the essence of the current economic climate and the effects this may have on the ENGO sector. For the full text and context of the letter click here.

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