Cafamerica: Rising Interest Rates May Soon Boost Recession-pinched Charitable Giving

Parallels Seen to UK CAF Survey, But Higher U.S. Rates Could Aid Nonprofits Struggling with Lower Contributions From Donors Pinched by Recession, Weak Returns Tied to Low Interest.

July 7, 2009 — Is there some good news on the horizon for U.S. charities hampered by reduced donor contributions? A recent Charities Aid Foundation (CAF) survey found that 42 percent of charities in the United Kingdom are struggling to deliver services because of the ongoing recession. The survey also showed that low interest rates have reduced contributions and are forcing almost half (45 percent) of charities to dip into their savings or reserves to deliver essential services, a pattern that is further weakening the finances of charities already facing fundraising pressures.

That same pattern has been evident in the United States, but it may ease somewhat in the coming months due to a widely expected increase in interest rates, according to CAFAmerica, which promotes borderless charitable giving as part of the CAF International Network that spans six continents and has over $4 billion of charitable funds under management.

CAFAmerica CEO Susan Saxon-Harrold said: “Rising interest rates amidst the early signs of a possible economic turnaround will help to encourage new giving by some donors who have cut back since the onset of the current recession in the early 2008. This will be good news for charities that have been bearing the brunt for months now of recessionary pressures.”

For details on the CAF survey in the U.K., please visit on the Web.

CAFAmerica helps companies, family and community foundations, and individuals to manage their international philanthropy efforts and strengthen charitable activity around the world. It also advises on fundraising and grant-making, allows online account management and provides an online giving mechanism for nonprofits to place on their websites.


CAFAmerica was founded in 1992 as a member organization of the London-based CAF International Network, which provides charitable financial services to nonprofits, individuals and companies. The CAF International Network spans six continents and has over $4 billion of charitable funds under management.

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