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This fall is has been a hard time for Silicon Valley's nonprofits. Their economic sources from donations and from tax revenue have dropped substantially. And the winter will be here in a month.

With all the layoffs and drops in the stock market, the Valley was headed in this direction before the Sept.11 attacks. Beside, the potential for additional acts of terrorism and long-term military action adds the threat to the Valley's economy.

"Some corporations have been cutting philanthropic support as they rethink their business strategies," said Peter Hero, president of the Community Foundation Silicon Valley. "Some major foundations have cut their grant budgets as well, since endowments invested in the stock market have dropped dramatically According to the San Jose Mercury News, numerous groups are conservatively projecting a 15 percent to 30 percent drop in giving this fall, the most important fundraising time of the year for many nonprofits.

Jeff Skoll, co-founder of eBay and one of the valley's most influential young philanthropists, also thinks this is a big issue. He said, "Local nonprofits are starved in resources because of the decline in the economy and the diversion of some resources (to Sept.11 relief efforts)."

Kathy Espinaza-Howard, director of Palo Alto city's office of Human Services, said, that since Sept.11 large amount of donation in the Valley have gone to New York, instead of going to local charities.

"I don't know the exact figure, it's estimated to be around $20 million from the whole Valley," she said. "As I know, more than $2 million of that went through the United Way Silicon Valley's Sept.11 Fund. At the same time, support to its members has decreased 10 percent in the past month compared with that of last year."

United Way Silicon Valley Chef Executive Greg Larson says the contributions to New York will not reduce giving at home. Even so, he said, the further weakening of the national economy from the the terrorism will reduce groups' and individual's giving. Therefore, he encourages those companies which have given to the Sept.11 fundraising to contribute now locally

Peter Hero agrees. "We urge members of the community to continue to donate, to get involved," he said.

However, for nonprofits, there is some good news as well Jeff Skoll, 36, who recently reported owning eBay stock estimated at $1.9 billion, has announced a $20 million donation to his foundation, the Skoll Community Fund, on Oct. 23. Of that, $2.5 million worth of eBay stock is earmarked to help the Valley's struggling nonprofits.

Skoll is now creating a multimillion-dollar fund aiming to make up the sudden drop in donations of the Valley's nonprofits in the coming months, which he estimates at $25. Nonprofit sources say that this is approximately the amount that has been donated from Silicon Valley to New York

Similar efforts will forthcoming. Steve Kirsch, founder of Infoseek and another aggressive valley philanthropist, is reported to be giving $200,000. The Cupertino-based Sobrato Family Foundation is expected to contribute $2 million in general support to local charities.

Sally Osberg, executive director of the Skoll Community, says of Skoll's $25 million estimate, that it is only at the low end. She says that much mor is needed.

"It's clear to me it's going to get worse," she said.