Giving Down

Just as I thought, it appears that the tough economic times are taking their toll on charities. The details:

While the rest of us, or many of us, are still in a holding pattern with regard to our own finances (how bad is it going to get?), the fallout from the financial crisis is striking nonprofit groups and charities fast and hard. As much as people might like to sit still until their own finances feel stable again, many nonprofit agencies need additional support now.

Donations to charities grew about 4.5 percent in the 2007 fiscal year (which ended in July for most groups), to what sounds like a reassuring $72.5 billion. But that number doesn’t reflect the sudden downturn in donations these last few months, as large financial institutions (and historically generous donors) have collapsed, dozens of states have announced huge budget deficits, many municipalities are cutting their support of social service agencies — and some nonprofit agencies are facing a drop in individual contributions.

And all of this is occurring as demand for many groups’ services is growing sharply.

Because the end of the year is when nonprofit groups typically expect a jump in contributions — and because that surge is so suddenly and completely in question — program administrators say they are scrambling to keep up.

We did much of our annual giving in the first half of the year, but we're looking to give more over the last few months of the year (for example.) As I've said before, almost all of the people reading this blog would be classified as rich according to world standards, and there are many, many poor people in need of our help. So during this time of the year, I'd like to ask you to think a bit about others and consider giving generously (even though times are tough) to the charity of your choice.

Comments

[Liz]

I wholeheartedly agree that most of us are rich by the rest of the world's standards. When I look at how I can cut costs in my own life to adjust to the economy or my debt, I never even think about removing the small amount I give to help others that are so less fortunate. The amount I give so that others can have the basic necessities of food and education mean way more to them than a few extra lunches out or a pedicure to me. It's so important to remember where we truly are in the big picture.

[Austin]

Sad times...especially considering how much money was probably spent last Friday.

[Jay]

Yes... so sad that all those people went out to stores this last weekend and purchased products... so those stores would need to hire people... so those people would have jobs... and not need assistance...

[Austin]

Jay

I am not saying that buying stuff is bad. If people don't buy then who is going to sell. However, it would be reasonable to estimate that a significant portion of those purchases will become junk which means wasted resources. Also if you are considering that these "temporary" jobs are a goods means of assistance then I think you forgot to consider the tax burden(FICA, etc.) on the workers. At least charitable donations are tax deductible.