Choices for the Poor Are Often Difficult

We all face scarcity. It is the fundamental economic problem of having unlimited wants or needs and limited resources. However, the choices a person or family struggling financially faces are quite different than the average income person or family. And with the current economy and high unemployment rate many more families are now faced with these difficult decisions.

Some people have the luxury of going to a grocery store and purchasing items because they like them. If they want to save some money, they may opt to purchase a generic brand of the item, but they still make the purchase.  A person who lives in poverty faces very different “trade-offs” and often the choices are not easy ones to make. For example, a low-income individual may have to choose between filling a much needed prescription or paying the electric bill. It may be the choice of getting  a meal or going hungry. Maybe they have a part-time job and need to pay for child care to work.  The wage earned to work may not be much more than the cost for a child care provider.

Therefore, low-income families must decide what is most important at that very moment. It is not what they like or desire, but what their current greatest critical need is. If they don’t pay the electric bill then they won’t have heat and lights. If they are fortunate to have a job, how much will child care cost? What about transportation costs and if the only option is public transportation, is it available? If you add into the equation a sick child or other unpredictable expenses then the choices become even more precarious. 

Many times we read about poor people being irresponsible. But I believe that, in many cases, it is not about responsibility but about priorities, and the priorities are driven by financial challenges which require complex decision-making. Choosing between your job, your health, your child’s health, food, medicine or electricity are pretty hard decisions.  I recently met a lady that lost her job and home because two of her children became severely ill at the same time and she had no support system or safety net. She is currently living in a homeless facility in the upstate and trying to get back on her feet. Her circumstances left her with few choices and life as she knew it quickly cascaded out of control. There are thousands of people in the same boat.

As we think about the challenges we have in our own lives, it is important to put those challenges into perspective. Even though we often show empathy to those less fortunate, I am not sure we truly understand their plight. I will never forget the words of the lady in the upstate, “I live by faith and I want to be the best mother I can be, and work hard every day so I can provide for my children and live without depending on others for help.”

Difficult decisions and monumental consequences are a way of life for those living in poverty, day in and day out. Their hopes and aspirations may be no different than ours but their path to getting there is very different. Being mindful of the choices others have to make is part of the learning landscape. If we understand what it might be like to walk in someone else’s shoes, then I think we will be more apt to respect their circumstances a bit more.

Tom Keith is the president of the Sisters of Charity Foundation of South Carolina

Funding Shortfalls Continue to Challenge Us All

Funding shortfalls from government and the private sector continue to negatively impact South Carolina’s nonprofits. Organizations that previously seemed impervious to the economic downturn are now suffering tremendously. Nonprofits are cutting staff and programs and simply doing whatever is necessary to keep the doors open. The sad news is there is no immediate resolution on the horizon.

The reality is that organizations must operate using a scaled-down model. In some cases, nonprofits have reduced their staff by 50%, yet the demand for the services they provide has increased. Foundations must also be willing to change with the times. For example, the Sisters of Charity Foundation is funding operational expenses for nonprofits. This is something we did not consider for many years. To allow more organizations to apply for our Caritas Grants program, which are grants that meet basic needs, we have raised the operating budget limit for potential applicants. In an effort to be grantee-friendly, the Foundation is lifting a process that has been in place. If an organization is funded in one year, they can now apply for a grant the following year. Previously, a full year had to expire before this was possible, and often grantseekers were forced to wait nearly a year and a half to reapply for funding. Additionally, the Foundation is looking at providing restructuring and reorganization grants to allow nonprofits to look at new models, mergers and even dissolution. 
 
The fact is that our Foundation funds are tight. This is the smallest budget we have ever had in our 15-year history. We cannot let this stop us from reaching as many nonprofits as possible. We will have three grant cycles in 2011 and, along with our initiative funding, we will award more than $2.4 million across South Carolina. In addition to grantmaking, the Foundation will provide multiple learning opportunities and training sessions for nonprofits to attend free of charge. A current list is updated regularly on our Web site. These free sessions are geared towards helping organizations find ways to be more successful and to operate more efficiently. The programs will be available in Columbia, S.C., at the Foundation office as well as other locations in the state. So even though times are extremely challenging, there are still many opportunities.

Success may be measured differently this year. Our success will be measured by how many organizations we can assist and therefore, how many individuals and families living in poverty we can help.  It is my hope that every organization operating will find a way to garner the resources they need to operate necessary programs this year. Otherwise, needy individuals and families will continue to suffer and bear a large part of the brunt of these tough economic times.






Tom Keith is the president of the Sisters of Charity Foundation of South Carolina

Wisdom

As I think about the “doom and gloom” that faces all of us today, I ask myself “what went wrong?” We find ourselves in such a complicated mess that I think the answer to this question is unachievable, at least, in a single response.

To me, it is a combination of many things that has put this nation, our economy and our future at risk. Furthermore, there is an overarching theme that can apply to the problems that have occurred.

“We have lost our moral compass and our wisdom.” We have become a self-centered, greedy and “instant gratification” society and we are now paying the price for it. It starts in our families and transcends into our schools, businesses, government and financial markets. Moreover, I don’t think we as a society, both individually and collectively, are a bit happier today because of our narcissism. I think we are more frustrated and less satisfied. I think we have created a society full of segregated egos and self-indulgence that overshadows the good things people do in society, and there are many people doing good things. And though there are plenty of these wonderful altruistic people in the world, it seems they are in the minority today.

So what is our moral compass? It is the God given wisdom and virtues that each of us possess in our hearts, minds and souls. It is starting every single day not thinking about what I am going to do for myself but what difference can I make in the world in which I live. Can it be that simple? Well, if we all get up tomorrow and our goal is to be honest, unselfish, virtuous, collaborative and sensitive, would it be different than how we viewed our day today? I say “yes.”

I also think if we were a society of people and not things we would be better off. We have become a people of computers, Blackberry’s, cell phones, video games, I-Pods, Tom-Toms, laptops, etc., and I don’t think it has made us any wiser or more moral. I wish we were more about talking face-to-face with people and making more of an effort to simply listen and interact with others “live and in person.” We are a smarter and more sophisticated society today with access to information instantly, but are we wiser? I am not sure that we are.

We must prioritize our lives and make it important to spend quality time with our families, help our neighbors and fellow citizens and do the right thing for others--even if it means personal sacrifice. I believe it is the only real way we will truly recover from the mess we are in. We must be willing to sacrifice and get away from our self-serving greedy attitudes. If we don’t, I truly believe we can expect, and maybe deserve, more doom and gloom in the future.

It is the wisdom and sensibility that exists in each of us that can guide us through these difficult times and make all of our lives more meaningful and, yes, happier.

Tom Keith is the president of the Sisters of Charity Foundation of South Carolina.

Now What?

A plant near my hometown closed today. Nearly 700 jobs lost in an instant. The plant had been operating in the community for over 50 years. Now it is gone forever. What does it do to that community of 3,000 people? It does everything to it and none of it is good. The repercussions will include store closings, home foreclosures, default on personal loans, long unemployment lines and an overall community that will be devastated beyond recognition. Worse than that, this is just one community in one small state. If you multiply this situation times 1,000 then you get a better picture of what is happening.

We are in deep trouble in this country and it is not getting better in the foreseeable future. Can the government resolve our problems with stimulus money? It may help some, but it will not fix the problems we have. We are now witnessing the consequences of systemic problems that have been going on for years. A propped up financial system, poor loan practices, far too much debt to capital ratio and we are spending money we never had - both as individuals and as a country. We are the “want” generation and not the “need” generation and it is all tumbling down right in our proverbial laps.

Now what? I can tell you one thing; it is a pretty helpless feeling out there. People’s retirement funds have gone down the drain. Homeowners have lost value in their homes by the thousands. Jobs are dropping by the way side at a rate of more than 100,000 per week and state and local governments and school systems are on the brink of bankruptcy.

My advice is to protect your own families and finances as best you can while reaching out to others. There are a lot of people hurting and we have to help.

I was stopped at a gas station in Charlotte this week and a man came up to me and explained he was trying to get home to Asheville and did not have any money to put in his gas tank. He had a clunker car pulled up to the pumps, and he showed me the dollar in change he had. I went inside told the cashier to set his pump for $5 worth of gas and he added his money for a total of $6. It wasn’t much, but it got him on his way.

Help when you can. You may be feeling pain, but there are always others that are suffering more than we are.

Tom Keith is the president 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.