NCoC: Does a Bad Economy Hurt Civic Health?

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Does a Bad Economy Hurt Civic Health?

February 5, 2009

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The tanking economy is taking its toll. Personal income in America decreased $25.3 billion, or 0.2 percent, in the month of December according to the Bureau of Economic Analysis. Disposable personal income decreased $25.1 billion, or 0.2 percent, that same month. In the non-profit sector, foundation endowments are down 30% according to the Council on Foundations.

In a San Francisco Chronicle article from earlier this month, even Bill Gates is talking tough about the economy and cautioning that it could be up to five years of very rough times ahead for non-profits as donations are channeled to organizations that on the front lines of assisting with basic human needs.

Like most Americans, Non-profits are feeling the pain – not just in financial contributions but also in decreased numbers of volunteers.

In Brookfield, Wisconsin donations are down 50% for the Elmbrook Education Foundation, but executive director, Laura Schmidt also acknowledges a loss of volunteers compared to last year. “People are needing to go back to work. If a husband has lost his job, then perhaps the wife has to find a job, or now both spouses have to work.”

Although Schmidt says she has not done a formal study she sees fewer people volunteering to help raise funds, provide key items for fundraisers and even a downturn in fundraising event attendees. Schmidt also says she could use some guidance on how to engage community in these hard times.

But are things really so bleak? In May a Chicago Tribune article revealed that the McCormick Tribune Foundation gave $50,000 to Illinois Campus Compact to promote civic engagement among students, and Polk Bros. Foundation gave $113,00 to a university law clinic that helps low-income refugees and immigrants.

Are different types of civic organizations affected differently by the economic downturn? What’s worse, losing funding or losing volunteers? We want to hear from you. Tell us your story by leaving a comment.

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2 Comments

By Nick Troiano at 4:58 PM on Feb 10th, 2009

I can say from the perspective of a civic organization in the start-up phase, that finding funding is a real challenge with the constant refrain that "these are tough economic times." I think that a portion of that is a reality, but a portion is phycological. In either case, it is increasingly difficult (even laughable in some conversations) to be asking for money right now.

To really measure this economic crisis, I think that the public (and media) should not only think about the explicit losses we are seeing but also the opportunity costs of decreased investment in the public sector. In the long-term, the what-could-have-beens will be unknown but equally of consequence to our society. So I hope that private philanthropists, foundations, etc. realize this and do what they can to sustain the innovation that is responsible for accomplishing a lot in our country through their investments and donations.

By Gay at 9:16 AM on Feb 19th, 2009

Thanks for your comments, Nick. It's always great to hear your perspective. We look forward to hearing from you again.

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