James F. Normandin, a California hospital fund raiser, says donors are keeping an eye on how tax policies will change under a new president.

Don Stevenson, for The Chronicle

Eileen Spitalny, co-founder of Fairytale Brownies, says her business has seen direct benefits from its philanthropic ties to the charity Kaboom.

Ben Zachariah, Cass Shelter

Central Arizona Shelter Services is one of many social-service groups overwhelmed with demands for aid as the economy worsens.

From the issue dated October 16, 2008 About Politics and the Economy THE ECONOMIC TURMOIL has touched large and small nonprofit organizations alike, cutting into the value of endowments, hampering fund raising, causing cutbacks in grants and programs, and making it difficult for many to meet their budgets. TAX RULES are always a consideration in raising money for charity, but the presidential race, and the possibility that the rules could change, are complicating things this year. THE RESCUE PACKAGE passed by Congress to shore up the ailing financial system contains several tax breaks for donors and volunteers, including a provision covering gifts made from individual retirement accounts. SOCIAL-SERVICE CHARITIES, especially food banks and emergency shelters, are struggling in the face of the looming recession to meet an unprecedented demand for help. BOTH PRESIDENTIAL NOMINEES have a background in public service and both have proposed expanding national service, leaving many charity leaders optimistic about the prospects for their work no matter who wins. SEN. BARACK OBAMA held Harlem Children's Zone up as a model for alleviating poverty, and now the charity wants to be ready with a plan should the Democrat win the White House. THE FEDERAL ROLE in assisting the work of charities is the topic of intense debate now that a new administration is imminent. Much of the discussion is focused on proposed "social investment funds." SEN. JOHN McCAIN would increase the number of participants in national-service programs to 250,000 and hold "volunteerism summits": a summary of the Republican candidate's views on issues of interest to the nonprofit world. SEN. BARACK OBAMA has proposed the creation of a Social Investment Fund Network and would double the size of the Peace Corps: a summary of the Democratic candidate's views on issues of interest to the nonprofit world. About Gifts and Giving SMALL BUSINESSES can be a vital source of support — often in the form of free services or products — for small, local charities. A new Chronicle study examines what matters to the entrepreneurs who own those establishments. THE VERMONT FOODBANK receives support from numerous small and medium-size businesses in the state and works to make the partnerships beneficial for them. TO STOP THE SPREAD OF MALARIA, foundations, businesses, and aid organizations have pledged $3-billion toward the goal of keeping 4.2 million people from contracting the disease in the next six years. THE CLINTON GLOBAL INITIATIVE, the annual event organized by Bill Clinton, attracted an estimated $8-billion in pledges toward charitable endeavors. TWO MAJOR UNIVERSITIES, Harvard and Stanford, have received multimillion-dollar gifts intended to bolster scientific research at the institutions. RECENT GIFTS to nonprofit organizations and institutions. RECENT GRANTS by foundations, corporations, and other grant makers. A FESTIVAL OF JEWISH CULTURE held over eight days every year in Krakow tries to show the world that Auschwitz is not the sum total of the the Jewish experience in Poland (Dispatches). THE FACE OF PHILANTHROPY: The Great Ape Trust of Iowa sells artwork created by gorillas, chimpanzees, and other apes to raise money for conservation and research. About Fund Raising UNITED WAYS together raised 2.4 percent more in 2007 than they did the previous year, but they still couldn't beat the rate of inflation. GRANT MAKERS don't seem to understand, or want to support, endeavors that blend business and charity, says Bob Levey. Witness the case of Harbor City Services, in Baltimore. UPDATE ON CAMPAIGNS for endowments, capital improvements, and other needs. About Managing Nonprofit Groups THE HEAT THAT CORPORATE BOARDS are taking over the financial crisis will eventually focus even more attention on nonprofit governance, speakers told state charity regulators at their annual meeting. ITS EFFORTS TO ORGANIZE PASTORS to preach sermons flouting the law against partisan political activity by churches could land the Alliance Defense Fund in hot water with the Internal Revenue Service. THE INTERNAL REVENUE SERVICE plans to ask 400 colleges and universities about details of their finances, including executive compensation, endowments, and business revenue (Tax Watch). GOV. SARAH PALIN, the Republican nominee for vice president, and her husband, Todd, donated $3,325 in cash and noncash gifts to charity in 2007, or 2 percent of their income (Tax Watch). ONE PERSON has to lead, and that person needs a clear plan: excerpts from Michael Kaiser's The Art of the Turnaround, about saving troubled organizations. RELATIONS between trustees and charity leaders are often fraught with difficulty, leading many nonprofit executives to seek guidance in how to work better with members of their boards. A DISASTROUS FIRE at a Chicago shelter for homeless teenage mothers and their children, and how the charity dealt with it, offers lessons for nonprofit groups on what to do when a crisis hits. About Careers in the Nonprofit World TO ATTRACT MORE WOMEN to its cause, Opportunity International hired a female business executive, Ruth-Anne Renaud, to fill the newly created position of vice president for women's philanthropy (New on the Job). HOTLINE: Tips for seeking an economic-development job, advice on splitting an administrative position, and other suggestions for readers are included in our bimonthly advice column. About Technology HEALTH WORKERS IN AFRICA are using handheld devices to gather data, instead of using expensive and time-consuming paper surveys, thanks to new philanthropic efforts. TWO MEETINGS NEXT MONTH will focus on how nonprofit groups can make better use of technology. Also in This Issue OPINION: Phil Buchanan on the strengths and weaknesses of "philanthrocapitalism" — both the practice and the book of that name; Leslie Lenkowsky on the line between acceptable and unacceptable politicking by charities; Frederick Lane on nonprofit groups' failure to prepare for financially difficult times; and Larry Ottinger on the lessons charity leaders can learn from the economic crisis. LETTERS: on whether the business world is the right model for charity work. NEW BOOKS: A memoir by a prominent arts leader offers the basics on turning around a struggling organization, a scholar looks at civic engagement in the Progressive Era, consultants outline how to help women advance at Jewish organizations, and two economics experts examine "philanthrocapitalism." PEOPLE: Appointments and promotions in the nonprofit world. AWARDS: Honors for people and organizations in philanthropy.