We’ve been hearing a lot lately about the effects of the economy. Are the current economic downfalls causing you to re-evaluate your organizational budget? With economic conditions as tough as anyone has seen in nearly 70 years, this situation can negatively affect nonprofit organizations (NPOs) and their budgets, as well, but for different reasons.
NPOs depend greatly on fundraising, a lot of which comes from individuals, corporations and government grants. The less disposable incomes available, the tougher it is to generate charitable giving. We see government grants being cut or reduced. Many corporations are also making budgetary adjustments, and these adjustments are negatively impacting the charitable gifts and/or social-responsibilities categories.
When the middle class suffers, so does charitable giving.
In the past, the majority of charitable contributions came from middle class donors; however, with the foreclosure and unemployment rates escalating in this group, many are finding themselves to be in need. Consequently social-services needs are skyrocketing. More people need help with shelter, food and general assistance than ever before. Shelters are experiencing more referrals, and some include the same people that once were their contributors or volunteers.
There is good news.
The good news is that nonprofits are very resourceful. And since so much of what they do depends on fundraising, they have to be creative in their efforts and become more visible in the public eye.
Sometimes the responses that we see can be counterintuitive. Even in dire economic times, people are more likely to open their wallets for nonprofits—in spite of other basic needs and causes. Volunteers are donating more of their time as their disposable incomes are smaller.
How businesses can help and impact.
In light of corporate social responsibility (CSR), or corporate citizenship, businesses should embrace responsibility by directing the impact of their activities to such public-sphere areas as:
- the environment
- consumers
- employees
- communities
- stakeholders
Furthermore, businesses can proactively promote the public interest by encouraging community responsibility, growth and development. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making and the honoring of a triple bottom line: People, Planet, Profit.
The practice of CSR is subject to much debate and criticism. However, from this community-minded professional, we all have to do whatever it takes to get through this and take care of our people, the economy and our planet.
Where do we start? Why not with you?
To learn more about how you can make a difference, read my other HRTools.com Insight, "
The Value of Volunteering."