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.