Recent mergers between large corporations and the global financial crisis of recent weeks means some companies have cut back their charitable giving plans, the Associated Press reports.

Two large companies - Atlantic Richfield Co. of Los Angeles and Ashland Inc. of Ashland, Ky. - have already reduced philanthropic giving in the wake of layoffs and revenue decreases, the AP reports.

Other large companies are expected to announce charity spending reductions for the next year as they assess the repercussions of recent large mergers and uncertain performance of international financial markets, the AP reports.

While news of corporate layoffs and reduced profits, even losses, may make people in the nonprofit sector nervous, the general trend is expected to be one of flat corporate giving levels rather than large-scale reductions, observers told AP.

Many financial experts say some type of economic correction is likely in coming months, but the problems aren't expected to be long-lasting or spread across many industries, AP reports.

If there are lean times ahead for corporate America, charities should see giving programs continue at some level, according to the story.

Corporate giving nationwide climbed to a record $8.2 billion last year, according to the American Association for Fundraising Counsel. Many companies also increased the endowments of their charitable foundations during recent years as revenues and profits increased.

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