Is provision of social services by non-profit organizations at risk?

World recession may harm provision of social services by non-profit organizations while the demand for them may rise

A world recession will have two consequences for Israeli non-profit organizations supported by US funding: firstly, the recession may cause donors to decrease their philanthropic giving. Secondly, the value of the donation is eroded because of the dollar's depreciation.

This phenomenon especially harms non-profit organizations (but also the IDF) whose funding flows from the US. These organizations may reduce the scope of services that they provide unless given financial aid similar to that promised to Israeli exporters.

Reducing services will have severe implications in light of the government's increased reliance on non-profit organizations as service providers. As their income dwindles while the ranks of the needy grow, Israel may find itself unable to provide for its weakest citizens.

Sources

Ruth Sinai, Haaretz, 03/19/2008

Ora Coren, The Marker, 03/14/2008

Moti Bassok, The Marker, 03/20/2008 (Hebrew only)