Everywhere you turn there is news of the economic crisis facing the United States. Additionally the stock market last week had the biggest losing streak in its history. What does this mean for philanthropy? Will we be able to raise the needed philanthropic support for our charitable organizations?
It may surprise you to know that giving in this country has only declined once in the last 68 years. In 1987, the year of the October financial panic, giving did decline but only by 1%. Every other year, even those years with some type of financial crisis, giving has gone up. Of course there is no way to know what this latest economic upheaval will mean as the total giving in the U.S.A. is tallied for 2008.
Whatever the final accounting, this is not the time for charitable organizations to reduce their emphasis on philanthropy and fund raising. When things get tough financially, it may seem prudent to sacrifice your fundraising program and use the funds "saved" to focus only on mission and services. However you will be better served to take this opportunity to evaluate your development program for the purpose of making the program more effective rather than arbitrarily cutting back.
In the process, concentrate your efforts on individual donors at least for the immediate and foreseeable future. As you know, charitable foundations base the size and number of grants they make each year on the total net value of their invested assets. With the decline of the markets, foundations will have less in the coffers for grant making. Businesses and corporations are also feeling the financial pressures and may be less inclined to be as generous with their support.
Individual donors are the backbone of any successful development program and this remains true in bad times as well as good. You must not forget or ignore them, even if they are currently unable to give at the level either they or you would like. You may be sure that if you do not continue to cultivate your organization's donor relationships, some smart, energetic fundraising professional from another charitable organization will. Just keep on doing what you know needs to be done. It will pay off, if not today then tomorrow. And tomorrow your need for philanthropic support will be even greater!
A mentor of mine once told me something that has proven to be true no matter the circumstances. He said, "There is no bad time or no good time to raise money. You just have to work hard and get it done."
Good luck!
Monday, October 13, 2008
Thursday, October 2, 2008
Love of Mankind
The word "philanthropy" comes from the Greek word "philanthropia" which is translated "love of mankind." The best definition of the word that I have found is from http://www.thefreedictinary.com/ which states that philanthropy "is a deliberate affection for mankind, shown in contributions of money, property, or work for the benefit of others."
A few weeks ago the Galveston/Houston/Southeast Texas area had an unwanted visitor by the name of Hurricane Ike. As he passed through the area late one Friday night and early Saturday morning, he left millions of inhabitants without power and some without homes and businesses. It was my first experience with a hurricane up close and personal. My wife and I were fortunate that we were on the "clean" side of the storm and for the most part only suffered about a day and a half without power and no real property damage or loss. Thousands were not as fortunate. Some are still without power 20 days after the event. Many who had evacuated as the storm approached returned to find that the storm surge had completely washed their homes away or had deposited a horrendous serving of muck and mire as the surged washed through their houses destroying their belongings. Today what the surge did not carry away or destroy the mold is consuming. Many continue to be in desperate circumstances.
Even so they are the fortunate. They are alive. Some lost their lives. In fact the search for the missing continues to this hour. For those and their families who desperately wait for news, we grieve.
In the midst of all of the destruction and misery appears examples of the "love of humankind." Even as the last remnant of Ike left the area, contributions of cash, goods, services, labor, etc. were flowing into the area. The Salvation Army, the American Red Cross, businesses, corporations and hundreds of faith-based organizations began funneling all manner of aid and assistance into the area. Yes, the governmental agencies were here and continue to be here but if the rebuilding effort is to be successful "philanthropy" will ultimately be an essential ingredient that makes it so.
Just a couple of days after the storm the Gulf Coast Ike Relief Fund (http://www.fhcf.org/) was established with an initial gift of $1 million from the Houston Astros organization. And that is just one example. Hundreds of other worthy groups and non-profit organizations have labored and continue to labor to ease the suffering and assist those knocked down to once more stand up and move forward. And it is all made possible through the generosity of good people who "love" their neighbors.
Philanthropy--easing suffering and making the world a little better one gift at a time.
A few weeks ago the Galveston/Houston/Southeast Texas area had an unwanted visitor by the name of Hurricane Ike. As he passed through the area late one Friday night and early Saturday morning, he left millions of inhabitants without power and some without homes and businesses. It was my first experience with a hurricane up close and personal. My wife and I were fortunate that we were on the "clean" side of the storm and for the most part only suffered about a day and a half without power and no real property damage or loss. Thousands were not as fortunate. Some are still without power 20 days after the event. Many who had evacuated as the storm approached returned to find that the storm surge had completely washed their homes away or had deposited a horrendous serving of muck and mire as the surged washed through their houses destroying their belongings. Today what the surge did not carry away or destroy the mold is consuming. Many continue to be in desperate circumstances.
Even so they are the fortunate. They are alive. Some lost their lives. In fact the search for the missing continues to this hour. For those and their families who desperately wait for news, we grieve.
In the midst of all of the destruction and misery appears examples of the "love of humankind." Even as the last remnant of Ike left the area, contributions of cash, goods, services, labor, etc. were flowing into the area. The Salvation Army, the American Red Cross, businesses, corporations and hundreds of faith-based organizations began funneling all manner of aid and assistance into the area. Yes, the governmental agencies were here and continue to be here but if the rebuilding effort is to be successful "philanthropy" will ultimately be an essential ingredient that makes it so.
Just a couple of days after the storm the Gulf Coast Ike Relief Fund (http://www.fhcf.org/) was established with an initial gift of $1 million from the Houston Astros organization. And that is just one example. Hundreds of other worthy groups and non-profit organizations have labored and continue to labor to ease the suffering and assist those knocked down to once more stand up and move forward. And it is all made possible through the generosity of good people who "love" their neighbors.
Philanthropy--easing suffering and making the world a little better one gift at a time.
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