As the Economy Sours, Charities Feel the Pinch
The holiday season is generally the time when people give most generously to charity. However, with the souring economy, many charities are seeing their donations dry-up.
Individual giving has been on the decline, as many people appear either unable to donate as in the past or unwilling to until the economy seems stable again.
Gift giving by foundations is also on the decline. The Bill & Melinda Gates Foundation recently announced that less will be disbursed in grants over the next year than originally anticipated (in recent years, the annual amount disbursed has been about USD$3 billion of its USD$35.1 billion endowment).
Corporate donations are also decreasing. Large charities are particularly dependant on corporate philanthropy; however, many large corporations no longer have the financial wherewithal to donate as they have in better times and some of the most generous givers (such as Bear Stearns and Lehman Brothers) do not appear to be in a position to give at all.
The decrease in charitable giving has had an immediate effect on some charities. The Variety Children's Charity, recently laid-off 21 of 65 employees and has temporarily stopped a phys-ed program for disabled children. There are many shelters and food banks that are seeing donations decline as need for services increases.
To encourage giving, some charities are making it easier to donate. The Salvation Army has gone electronic and has introduced wireless machines at the donation point at Yonge-Dundas Square in Toronto to allow people to donate by debit or credit card if they do not have change to drop into the kettle.
Have a great day!
Megan F. Connolly
