What Can Philanthropy Do Now?

As our state and country’s economy continues to struggle we find ourselves in the midst of a major dilemma. The questions become, “What can philanthropy do now through foundations and with other non-profit organizations to have impact during tough economic times?” There are several options that I would like to offer for your consideration.

• Foundations can expect and foster more productivity and efficiency from non-profit organizations, and demonstrate this expectation by operating in this manner.

• Invest in more education and training for non-profit organizations, beyond making direct grants. Every non-profit can benefit from new techniques around financial management, operational management, fund raising, board governance and marketing.

• Foundations must take a public stand on issues that impact non-profit organizations and the constituencies they serve. For example, inefficient government systems and punitive and illogical policies and decision making that have a negative impact on the poor and underserved needs to be addressed. In addition, Foundations should publicly support those policies that benefit the communities they serve. Foundations must be crusaders for those who cannot advocate effectively for themselves.

• Invest in innovative ideas, even if it is risky. Be willing to move forward if the outcome could help more people and offer solutions to problems.

• Expect accountability. Every financial investment into the non-profit sector should have a return. Some are easier to measure than others but every organization accepting grant funds needs to be able to report its successes and, yes, failures. This needs to be a meaningful and dynamic process and not a perfunctory “after the fact” exercise.

• Promote more volunteerism. There are thousands of retirees in our state and country that have the time, experience and knowledge to make an impact on the non-profit sector. We must mobilize and involve more of these individuals. We must also call on our young people to become engaged in philanthropic endeavors. Our next generation must see the need and take responsibility for community service now.

• Encourage philanthropy. There are a lot of people who have become wealthy over the last ten years, and for what ever reason, have not shared this wealth. We must find a way to create new foundations or endowments through community foundations. We also must give relief to those who are able to give but need some incentive. For example, the IRA Charitable Rollover under the Pension Protection Act of 2006 allowed taxpayers 70-and-a-half or older to give money to charity from IRA’s without penalty. This was a good decision and generated millions of dollars for non-profit organizations in a short period of time.

These are just a few ways that we can make a difference now. Let’s all work together to find other ways to encourage and build philanthropy. It is how we will continue to change lives and communities for the better.

Tom Keith is the executive director of the Sisters of Charity Foundation of South Carolina.

Don't Forget Non-Profits During Tough Economy

The recent downturn in financial markets and the faltering economy is negatively impacting businesses and individuals in South Carolina. People are forced to change their spending habits and prioritize how and where they spend their hard earned dollars. Businesses face similar challenges. Often overlooked, but equally impaired by this financial crisis, are nonprofit organizations serving the poor and vulnerable. With individual needs increasing, nonprofit organizations are trying to respond while trying to survive.

Non-profit and faith-based organizations that deliver much needed services to poor families and individuals are in deep trouble as they rely primarily on charitable contributions and grants. Donors that financially support these organizations are now reducing or eliminating their contributions. In addition, the weak economy and poor performing stock market has impacted grantmaking foundations’ assets, thus affecting their ability to give. The decreased contributions and grants coupled with the huge increase in demand for the services of nonprofits in this time of need cause an industry paradox that could spell disaster for many organizations in the near future. Several non-profit groups in South Carolina will be forced to cut services and lay off staff while others will be forced to close their doors completely.

There is no easy solution to the economic woes that face us. There are many forthcoming financial decisions underway in Washington that will affect each of us either at work or at home. As we consider our financial options, we must not forget the financial investments we have made and should continue to make to the non-profit and charitable sector.

The reality is that often the people affected most during an economic downturn are the most marginalized and vulnerable in our society including children and poor families. The devastation for the needy will be far worse than anything facing the average South Carolinian. When considering expenditures through business, philanthropy or individually, let us continue to support those who need it the most. We have done our part to help during the good times, now it is up to us to do what we can to help these organizations through the tough times. It is the right thing to do and the right time to do it.

Thomas C. Keith is the executive director of the Sisters of Charity Foundation of South Carolina.