You've got just a couple of days to sneak in those final contributions for 2009. And your favorite causes need you to stretch your giving.
While the recession seems to be, well, receding, non-profit organizations are still struggling to keep their staff, to fund their programs, and the outlook remains bleak for many organizations. 2009 saw the demise of countless non-profits and foundations that simply couldn't make it in a down economy. The void they leave means less progress, less work, and less funding for the most pressing issues of our time.
The foundations that do remain have, in many cases, curtailed their giving. And with the media proclaiming doomsday after the collapse of Lehman Brothers et al. last September, many individuals pulled their purse strings closed and kept their wallets tucked away. Making matters worse, corporate giving often suffers when times are tough on businesses, making it more difficult for non-profits to rely on traditional corporate sponsorships.
Even now, as stores are seeing increased sales and profits, non-profits are still not seeing the reward of an economy in recovery.
Americans are buying more holiday gifts this season than last, but that same spirit of generosity has yet to reach most charities.
In fact, a Chronicle poll of 395 charities conducted over the past week finds that one-third of charities expect donations to decline by 10 percent or more by year's end. Another 21 percent also expect donations to decline, although by smaller amounts. Charities of all sizes seem to be affected by the downturn.
Chronicle of Philanthropy, December 16, 2009.
Earlier this year, I was asked to serve as Acting Board Chair of an organization for whom I've sat on the board for nearly 8 years. As I got a closer view at our budget and cash flow sheets, I was able to see first hand how these meta-economic issues were affecting our day-to-day decisions. As the Board Chair, I was asked to make a "leadership gift." What exactly did that mean, I asked the organization's executive director? "Give until it hurts," he responded.
That was a fairly easy to understand benchmark. My annual gift needed to be something that was so meaningful that I felt its impact in other parts of my life. I made a pledge that represented about 5% of my after tax income. I tend to give to a variety of organizations, so my total giving is probably somewhere around 8% of my after tax income. As someone with an entirely non-profit client base in my consulting practice, and living in the San Francisco Bay Area, there's no big slush fund in my annual budget, so it takes some planning to reach this benchmark.
Amazingly, instead of hurting when I made my biggest pledge to date, it felt incredible. As a result, I'm able to confidently ask others to give at a leadership level, knowing that I've stretched my giving as far as I can.
For one person, giving $5 may hurt. For someone else, it may be $500, or $5000. For the wealthiest, of course, it's a much larger donation that truly makes an impact on their day-to-day spending. Interestingly, several studies have shown that those with the least tend to give the most.
In fact, America's poor donate more, in percentage terms, than higher-income groups do, surveys of charitable giving show. What's more, their generosity declines less in hard times than the generosity of richer givers does.
"The lowest-income fifth (of the population) always give at more than their capacity," said Virginia Hodgkinson, former vice president for research at Independent Sector, a Washington-based association of major nonprofit agencies. "The next two-fifths give at capacity, and those above that are capable of giving two or three times more than they give."
Indeed, the U.S. Bureau of Labor Statistics' latest survey of consumer expenditure found that the poorest fifth of America's households contributed an average of 4.3 percent of their incomes to charitable organizations in 2007. The richest fifth gave at less than half that rate, 2.1 percent.
"America's Poor are its Most Generous Givers", Frank Greve, McClatchy Newspapers, May 19, 2009
During a down economy, it's tempting to reign in spending, and in some cases, it's also wise. But non-profits are hurting right now. Whether you're more drawn to organizations that protect the environment, promote the arts, work to prevent cancer, or feed and clothe the hungry and underprivileged, most are feeling the pinch. They need your leadership gift now, be it $5 or $5 million. There is no back up, no safety net for these organizations at times like this. If you're not making a gift, there's no one else stepping in to fill that gap.
The end of the year is just a couple of days away. Giving is easier than ever before - you can give through traditional channels, or use new, innovative giving strategies through Facebook or even through a text message. (If you find yourself inclined to give but at a loss for where to start, feel free to look at any my favorite groups, all of whom I've carefully vetted and seen the good work they do: ForestEthics, Kiva, Amazon Watch, ASPCA, Green Corps, Breast Cancer Fund, I'm Too Young For This Cancer Foundation, or any of your local food banks).
Take a minute to consider which organizations the world can't - and shouldn't - live without, and give until it hurts. I promise, it will feel great.