Accessing Restricted Funds Amidst The COVID-19 Crisis

The COVID-19 pandemic and resulting measures to encourage and enforce social distancing have resulted in a severe economic slowdown that is widely expected to lead to a deep recession, if not worse. This downturn has hit charities hard. Foundations have seen the value of their endowments plummet and investment income is likely to diminish significantly. The economic downturn has also adversely affected donors' ability to give, putting further downward pressure on revenue in the sector. For charities that rely on in-person giving (e.g., plate collections by religious congregations), social distancing has had disastrous effects on fundraising. How long this will continue is unknown, but charities are already struggling to support their charitable programs and meet their ongoing operating costs at a time when need in the community for their services has never been greater.