Hard Times Hit Charities, Too

Senior Fellow David Callahan discusses how charities and other nonprofits radically tighten their belts, marking a heady golden age for America's nongovernmental sector as coming to an end. Emerging hopes that this sector could do better than government at easing social ills -- hopes championed by the right, but not uncommon on the left -- seem naive in the context of recent funding trends.

The endowments of many US philanthropic foundations have declined by a third or more in the past several years, and individual giving is also way down.