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The new year has unfolded with many of the same questions as last year… with the central question perhaps, “When are we going to get a handle on this financial crisis?”

It’s certainly affecting business and employment at all levels, and in many communities it’s also affecting charitable causes. Yet at least on a larger scale,  charities seem to be weathering the storm of the recession fairly well.

“Charitable giving by wealthy individuals and endowed foundations in the United States has proven resilient during the economic crisis, with some foundations increasing donations in response.”

“Experts fear a drop-off in 2010 because philanthropy is something of a lagging indicator. Many corporations donate to the arts, education and social services based on a three-year average of profits.”

“I hear from (wealthy) people that they’ve got a tough situation this year,” Tuohey said. “My reaction is, ‘You can afford to lose some.’ Think about the less fortunate, the people who have tough situations every year.”

“Since the heavy economic turbulence of September and October, nearly 50 grant-makers — primarily endowed foundations and corporations ” have pledged more than $100 million in response to the crisis, according to the Foundation Center, which collects grant data from about 1,000 charitable foundations.”

Yet even more challenging for many non-profit organizations are the fragile links within the community for helping people with the basic essentials such as food, clothing and shelter.  Some indications are that more and more people are relying on the same basket of charitable goods and services that these agencies provide, and they may be finding less resources available at critical times. 

Fortunately we’ll be transitioning to warmer months soon, and government leaders are working hard to focus on shortfalls in financial support for key programs and services.  President Obama has asked Americans to step up to the plate to help our fellow citizens and it appears many people have heard that call.  But not eveyone believes charitable organizations are handling the financial crisis well, or receiving enough support from all reaches within the nation. 

“What is required of us now,” President Barack Obama said in his inaugural address this week, “is a new era of responsibility — a recognition on the part of every American that we have duties to ourselves, our nation and the world.” It is a message that nonprofit organizations would like our nation to take to heart, as 2009 fund-raising begins.

“Unfortunately, we nonprofit leaders, like our for-profit counterparts, are laying awake nights. The end of 2008 was disappointing for philanthropy, and some believe that 2009 will be difficult as well. Indiana University’s Center on Philanthropy publishes the Philanthropic Giving Index (PGI), which tracks the predictions of nonprofit leaders about charitable giving. Like the more-famous Consumer Confidence Index, it shows a level of gloom not seen in years, falling from 83 to 65 (on a 0-100 scale) in just six months.”

Charitable causes should not depend on political leanings, but obviously some researchers believe it matters and that non-profit groups can capitalize on these trends.

“Reasonable people can disagree on politics, but the numbers on giving speak for themselves. Nonprofit executives, disproportionately politically progressive, do well to remember that many of the folks they will count on in hard times are not necessarily those who share their political views. Understanding this might make for better fund raising in a scary year — and help us all to give credit where it is due.”

Perhaps that’s sage advice for trends in fundraising during challenging times.  Other non-profit experts believe we can equally learn from the mistakes of our political leaders, especially as it relates to fund-raising and non-profit administration.  Goodness knows that learning from the mistakes of others is rule #1 in achieving excellence.

One thing is for sure however, Non-profit organizations are playing an increasingly important role in supporting the needs of millions of Americans.  To that end the Congressional Philanthropy Caucus, stood up in Congress and the Senate in 2007 and 2008 respectively, was formed to help our elected leadership better understand the role that foundations and corporate giving programs provide to the nation.  Hopefully legislative issues such as taxation and public policy programs will better consider the needs and structure of non-profit organizations in society and help them become more effective where appropriate.

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