Executive Voices
Giving Till It
Helps
Nonprofits should use this time
of national suffering to plan their futures
By Larry Wheeler
Was
civilization as we know it changed irrevocably by the uncivilized
events of Sept. 11? If, in fact, giving selflessly of services and
resources to brethren in need is a constant characteristic of
civilized peoples, the enormous charitable response to this tragic
moment attests to a human culture still rich in caring. More than $1
billion in aid to victims and helping organizations has been assembled
from every sector of our population and people throughout the world.
Further, governments have committed extraordinary resources not
counted in this total.
Is the spirit of giving, however, robust enough to respond to crisis
as well as to sustain that conglomeration of education, environmental,
cultural, health and social services organizations which has
experienced such dramatic growth in the recent roaring economy? Before
Sept. 11, Giving USA, an annual survey of the state of philanthropy,
indicated a certain slowing of the rate of charitable giving to just
3.2 percent in 2000, or $203.5 billion adjusted for inflation. In
several recent years, the growth in philanthropy has been recorded at
above 20 percent. The downturn of the economy without question has
reduced the rate of growth of charitable giving. The popular area of
transferring appreciated stock to nonprofits has slowed even more
obviously. Even so, most divisions of the charitable sector
experienced some modest growth in gifts, although not by the same
margins as in the past five years.
The issue now on the minds of those who help foster the good works of
nonprofit organizations is whether the philanthropic focus on the
needs created by the events of Sept. 11 will diminish contributions at
year end to institutions, organizations and agencies whose services
and programs are considered essential to their communities, or if the
tragedy helped produce a heightened sense of community responsibility
which will be manifest in sustained and broader-based support.
In this environment of a weakened economy, a reorganization of
national priorities and a public will to make a difference, nonprofit
organizations have an historic opportunity to tell their stories in
compelling ways and to connect with community values and public
ambitions.
It is reported that 7.5 percent of all workers in the United States,
or nearly 11 million people, are employees in the nonprofit or
independent sector. In certain communities in North Carolina, the
Triangle being the prime example, nonprofit organizations
(universities, governments, health care and cultural organizations)
employ by far the largest base of workers and strongly define the
character of the communities in which they are located. The nonprofit
sector of North Carolina is critical not only to the state’s
economic success but also to its social progress and its rich and
diverse quality of life. It is apparent that the sustained stability
of these nonprofit enterprises and organizations is crucial in
maintaining the economic health and quality of our state.
The good news is that the nonprofit sector of North Carolina remains
in relatively good health despite an economic slowdown and the recent
events of Sept. 11 and subsequent weeks. There has been no significant
curtailing of services or programs, there has been no wave of massive
layoffs and, to date, no dramatic diminution of contributions which
are fundamental to the vitality of these organizations. In this
regard, the nonprofit sector has remained ahead of the economic curve.
But can it stay there?
As the economy boomed, most organizations in the nonprofit arena
expanded. Budgets grew as staff was added to help meet programs
associated with enlarged missions. Growth was encouraged by increased
contributions both in numbers of gifts and scale of gifts. Development
and marketing progressions became driving forces in these
organizations as they sought major investments in the values of their
causes. Capital campaigns were routine expressions of these nonprofit
institutions. From corporate sponsorships, foundation investments in
education initiatives and tax incentives for the individual donor, to
naming opportunities and specially designed social and educational
perks — all became the operating culture for nonprofit
organizations. In other words, the nonprofit world has become very
corporate in the ways it does business, specifically careful research
on clients and prospects, cleverly executed sales and marketing
campaigns of programs, image, and philanthropy itself. The more mature
and sophisticated organizations that have developed their professional
and volunteer expertise will likely succeed in moving their
institutions forward, albeit with slow growth and conservative and
cautious management being hallmarks of this transition.
Smaller organizations may find sustaining funding a bit more
difficult. If corporations shift their funding to key corporate and
community priorities, the support of smaller projects will suffer.
These organizations, however, tend to draw a great deal of support
from a core of committed supporters and users of their services. They
will inevitably work diligently to maintain strong and increased
individual support while cautiously planning any programmatic growth.
The charitable spirit of Sept. 11 could save these organizations as
well.
Organizations in the nonprofit sector typically depend on individual
patrons as the largest category of benefaction. Committed patrons give
not so much for tax incentives or recognition as they do because they
believe their designated charities provide important services and are
good for the community. It is incumbent on nonprofit organizations to
state well their cases for support and to create emotional connections
between their patrons and their vital programs.
While this will inevitably be a period of slow growth and
full-throttle fund-raising for nonprofits, it can likewise be a period
that accommodates visionary planning for a future North Carolina.
Dr. Larry Wheeler of Raleigh is director of the North Carolina
Museum of Art
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