skip to main |
skip to sidebar
The Sisters of Charity Foundation of South Carolina recently joined other grantmakers in the state and across the nation to participate in Foundations on the Hill. The purpose of Foundations on the Hill is to inform and educate Congress about philanthropy, create visibility for foundations and philanthropy on Capitol Hill, advocate on issues affecting foundations and encourage Congress to view foundations as resources on key public policy issues.
Given the current economic climate, coupled with four new members in the House, it was very important for the Sisters of Charity Foundation of South Carolina to remind and educate Congress on the importance of the philanthropic sector and start building relationships with our new Congressional delegation.
In a series of briefing sessions―hosted by the Council of Foundations―preceding the Hill visits, the group was able to hear from a variety of Members of Congress and their staffers. The majority of Hill staffers present vocalized their thoughts that foundations can make up for government shortfalls, especially as the budgets are cut. This is a huge misconception. Government can’t expect foundations to fill funding cuts.
Mother Teresa once said, “What we are doing is just a drop in the ocean. But if that drop was not in the ocean, I think the ocean would be less because of that missing drop.” This is also true of foundation resources; compared to government dollars, foundation funding is just a drop―albeit vital― in the ocean.
However, philanthropy is still a resource for government. Philanthropy is independent, innovative and an investment in communities. It uses private resources to do public good, and its independence allows the philanthropic sector to takes risks, achieve greater results and affect change. Through leveraging resources, flexibility and ingenuity, philanthropy drives innovation and is a breeding ground for great ideas. Lastly, philanthropy invests in long term solutions for our country’s most challenging problems.
Foundations tend to be more familiar with the issues in the communities they serve. While they may not be the ones on the ground doing work, they support these nonprofits and have built great relationships. Foundations can also identify, test and replicate best practices in communities.
More and more people are turning to philanthropy to address the challenges facing our communities. Thus, government must do all it can to encourage and support philanthropy and foster the charitable character of Americans.
Brooke Bailey is the director of communications and public policy for the Sisters of Charity Foundation of South Carolina
As we approach the end of the calendar year, there is hopefulness among charitable organizations that something good is going to happen. There is a hope that people will feel more benevolent during the holiday season and give money. They recognize that the first 11 months of 2009 have been far less successful than anticipated. Organizations are “holding out hope” that this final month of the year will “pay off” financially. Additional optimism occurs when charities think about donors who need a tax break and will give generously to their organization.
What a wonderful fantasy they are having. I don’t think there is much chance this will happen in December 2009. Why? Well, most people are either struggling to make ends meet (average incomes), need assistance from others to survive (below average incomes) or lost 55% of their portfolio in the stock market (higher incomes). Those who lost money are trying to recover those funds and are worried about their own future retirement possibilities. Any of these three scenarios does not bode well for charities this year end.
The good news; I believe, that 2010 will be a far better year for all charities. I truly believe we have weathered a very tough storm and that we can begin repairing our organizations next year. Charitable giving will improve in 2010 and it will improve in the business, grant making and individual/private sectors. So, don’t expect a huge windfall in December, it likely won’t come. Do expect more funds and better circumstances for all of next year. I really think help from generous supporters is just around the corner and better times are ahead for charities.
Happy Holidays to All. Tom Keith is the president of the Sisters of Charity Foundation of South Carolina
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.
