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Giving faces challenges in tight economy
Rising gas prices. Mortgage woes. Unemployment concerns.
With so much uncertainty surrounding the national economy over the last year, you'd think charitable giving must be in an unstoppable free fall. Not so, according to "Giving USA 2008," an annual report on philanthropy in the United States.
Overall, charitable giving was up 3.9 percent last year and the total inched past $300 billion for the first time ever. In fact, every form of giving saw some level of increase whether it was individual donations, corporate gifts, foundation grants or charitable bequests and that trend applied to religious organizations and all types of public charities.
The report published in June by Campbell and Co., a national consulting firm serving nonprofits, suggested a few reasons for its surprising conclusion. Among them: modest growth in personal income (3.5 percent), corporate profits (1.3 percent) and the overall national economy (2.3 percent in gross domestic product).
Some other interesting findings:
- Gifts to human services organizations rose by 8.4 percent, the fastest increase in seven years that was not directly tied to a natural disaster.
- Gifts to arts, culture and humanities organizations were up by 7.8 percent.
- Gifts to public-society benefit organizations, a category that includes combined funds like the United Way, grew by 5.8 percent.
While the report had some unexpected good news, it also suggests some important challenges ahead.
Gifts from individuals make up the vast majority of all contributions about 75 percent of all charitable giving in the United States and these are closely tied to changes in personal income and wealth, as measured by fluctuations in the stock market. With the Dow Jones Industrial Average down about 15 percent this year, the result could be fewer contributions in the coming months.
If that does happen, it would have a significant impact on our community, since many ministries and social service agencies in Lee County have seen a sharp increase in requests for help.
Christians United Outreach Center of Lee County is just one example.
Executive director Rick Tysinger says the ministry served about 180 clients a week back in June, but the number has been rising ever since. Just last week, the ministry served more than 250 people, and the group has had to cut back slightly on the amount of food they give to large families requesting help from the emergency food pantry, just so they can assist more people.
Some of the increase, he believes, is due to word spreading about the ministry. But the rest is probably due to the economy. "I think the trend is going to continue until the economy is in better shape," he says. "And who knows how long that's going to be."
That's consistent with what's happening elsewhere. Despite reporting an increase in national donations to human service organizations, "Giving USA 2008" pointed out that "many agencies providing food and shelter reported growth in demand in 2007 that exceeded their capacity."
All of the national facts and figures are interesting and valuable information. They help us understand what's taking place around us and help us plan for the future.
But we're not held captive by national trends. Local giving is the sum of what each of us chooses to do to enhance our own community. No matter what's happening in New York or Los Angeles, we can improve our own lives by making a donation at home to help our neighbors.
And with an uncertain economy ahead and requests for help on the rise, now is when all of our help could be needed the most.
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