Foundations mugged by the recession.

• Author: Schomp, Caroline
• Position: NONPROFITS

Colorado foundations are responding to an uncertain economy like many Coloradans--looking for creative ways to do more with less.

The economic travails of the last two years have only strengthened their commitment to helping improve the lives of Coloradans, say the leaders at six of Colorado's most visible foundations: Daniels Fund, Rose Community Foundation, Gates Family Foundation, The Denver Foundation, The Community Foundation Serving Boulder County and El Pomar Foundation.

Two years after the stock market crash, there's "increased need, decreased giving, decreased market return and the need to insure financial assets for the community for the future," Rose Community Foundation President Sheila Bugdanowitz says.

Conservative investment strategies allowed the six to weather the crash and recession better than many individuals. As a group, their assets dropped as much as a third, and while they have experienced substantial recovery, uncertainty remains.

"We are operating in uncharted territory," Daniels Fund President Linda Childears said.

Foundations fall into two groups: private and community. The majority are private, with funding from a single source, usually a donation or bequest from an individual or family (Daniels, Gates, El Pomar) and make grants according to an established mission and focus.

Community foundations (Rose, Denver, Boulder) get funding from donations made by individuals and organizations. Assets are divided between unrestricted gifts that can be used in multiple ways according to organizational missions, and funds that are set up--and often directed by--donors.

While both types of foundations took a hit in 2008, the recession continues to be a fundraising headache for community foundations, particularly as they try to raise unrestricted dollars.

"The headline is: Need up. Donations down," Boulder Community Foundation President Josie Heath said. "Donors tell me they want to continue giving, but they want to be cautious because they're not sure we've turned around yet."

The Denver Foundation's directors tapped its endowment to maintain the same level of giving from unrestricted funds as before the crash. "The needs are greater in a recession than in boom times," said David Miller, the foundation's president. Rose's board cut administrative costs an additional 5 percent to help maintain grant-making levels.

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