NOT IN KANSAS ANYMORE

Wednesday’s Giving USA 2009 report on last year’s charitable contributions put hard numbers to that sense of "We are not in Kansas anymore”. Although charitable giving exceeded $300 billion for the second year in a row, charitable giving fell by 2 percent. Adjusted for inflation, total giving was down 5.7 percent, the largest drop recorded since the group has been keeping track of America’s charitable donations. Those of us invited to hear the statistics interpreted by Jimmie Alford at North Park University were urged by a lovely nonprofit board member on the panel to be even “more rigorous” in cutting back our organizations. We washed down the harsh reality with strawberries, chocolate and a toast to The Alford Group’s 30 years in business.

The U.S. stock market was the wealth-generating engine for many, including nonprofit organizations. The plunge of stock values from when the Dow Jones Industrial Average hit its’ high of 14,164 on October 9, 2007 to one year later, in the midst of the newly coined "cascading crash," when they closed at 8579, a 40% decline, has had dire consequences for nonprofit groups, particularly social service organizations serving the most needy among us. Charities are faltering as demand for services skyrockets.

“Researchers who compile Giving USA said that today’s recession most resembles the one in 1974, and it took three years after that downturn ended for philanthropy to return to the same levels of donations as before the economy soured,” according to The Chronicle on Philanthropy.

Charities weather downturns when they have solid fundraising programs, compelling cases for support and good governance. Now is the time to pick ourselves up, dust ourselves off and find the best ways to help our organizations weather this storm! Feel free to call me to hear my ideas.