Thursday, May 22, 2008

The slowing economy has a greater effect on the little guy: How charities and Foundations cope with fewer donations

The free Washington Post newspaper, Express, is the highlight of my morning commute. Usually I stick to the hilarious stories of incompetent burglars or misbehaving pets, but on Tuesday a particular article caught my eye, "Charities Detect ‘Disaster Fatigue’: Catastrophes in China and Myanmar prompt little giving in U.S."* I was a bit shocked, to say the least. I know these kinds of dramatic headlines are important to grab a reader’s attention, but this one hit a nerve.

I work for a Nonprofit IT consulting firm and I KNOW charitable organizations. I hear a lot from food banks that report a decrease in food donations because of the slowing economy and foundations are experiencing decreased numbers of grant requests because taking on new programmatic initiatives is hard to pull off when you don't know where the money is coming from. We are all tightening our belts and preparing for harder times.

There may be some disaster fatigue going on but the slowing economy is effecting charitable giving all across the nonprofit sector. It’s short sighted and premature to imply (by the headline at least) that multiple natural disasters are the only effect on charitable giving. The slowing economy is effecting us all but the under resourced, underprivileged, and undeserved are always hit the hardest.

For all nonprofits out there my headline would be; ‘The slowing economy has a greater effect on the little guy: How charities and Foundations cope with fewer donations’

* The exact story can be found in the May 20th edition of the Express. The following link is exactly what was found in the Express (by Lisa Tolin) but with a different headline: "Disaster fatigue' leads to drop in giving"

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