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NonProfits Challenged by Financial Crisis

A Decline in Donations and Investments Leads More Nonprofits to Rethink Strategies

Many organizations have had to curtail their ambitious plans because of budget cuts and lower funding, upping the demand for volunteers.

But there's a bright lining of sorts to these storm clouds. Job losses -- which have been on the rise -- can also boost volunteer activities as people find more time to donate to charities.

"It does tend to be countercyclical," said Robert Rosenthal, director of communications at VolunteerMatch in San Francisco. "More people out of work can create an increase in volunteer activities as people determine they can give time. It's a great investment for them."

Tough financial times tend to raise awareness about community issues, Rosenthal added.

For many, volunteering is a way to replace donations. It also provides, in many cases, networking opportunities, especially for those people who have lost their jobs.

Volunteering has increased in recent years -- about 61 million people volunteered in their communities in 2007 -- and that trend is expected to stay resilient during the financial crisis.

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