There’s more evidence that amidst the economic downturn people are becoming more careful and intentional about the kinds of charities they fund. We’ve seen that those likely to continue to flourish are those that have cultivated a “family-like” connection with their donors.
Often more local charities do well in this kind of climate. And, of course, the focus of the charity matters, too.
Robert J. Samuelson reports (HT: Theolog) that charitable giving was down $308 billion in 2008, and will likely be down even more this year. This will undoubtedly be due to less excess out of which to give, as well as potential changes to the tax code discouraging high levels of giving by the wealthy.
But Samuelson points out an exception to this trend. Feeding America, a group dedicated to providing resources for local food banks, has seen funding jump by 42%. Ross Fraser of Feeding America said, “Charities such as ours do well when times are hard. If you have to choose between giving to the ballet and feeding a hungry child, who’s going to win?” As Samuelson writes this dynamic “compounds the pressure on other nonprofits: colleges, hospitals, and environmental groups.”
Givers can be quite savvy, giving to the areas they perceive to be the most pressing. That’s why giving patterns can change quickly and respond to broader economic and social trends. With unemployment up and foreclosures on the rise, it makes good sense that food banks and other similar aid groups would have a competitive advantage relative to other kinds of non-profits.