Tough news from The Nonprofit Quarterly:
The Other America’s Philanthropy: What Giving USA Numbers Reveal in 2011
June 20, 2011
Ruth McCambridge and Rick Cohen
As some readers will recall, “The Other America” was a study published in 1962 that was influential in informing social policy. It documented the extent of poverty in the United States – asserting that much of poverty was unacknowledged. Fast forward to 2011. Has a good part of philanthropy forgotten about poverty in this country right in the midst of the worst recession since the depression?
Last week the United Way of the Central Carolinas announced that it had withdrawn $2.5 million out of its $10 million in reserves to try to level fund community agencies struggling with increased need and reduced government contracts. Its fundraising had fallen $5 million short from the previous year.
Yet here comes the headline from this year’s Giving USA report on charitable giving: giving was up by 2.1 percent in 2010 over the previous year, indicating a rebound of charitable giving. We can either think of that United Way as a low performing anomaly or look deeper to understand why so many community organizations are still struggling.
Among fundraisers, there’s an ethic of not crying wolf, of seeing the positive even in the negatives, and assuming that the unending generosity of the American charitable donor will win out. But below the headline, the Giving USA numbers this year present an alarming picture for communities across the United States on any number of counts.
What we see in the Giving USA numbers is a still-depressed domestic giving scene. The 2.1 percent increase logged for 2010 estimated giving is an increase based on numbers for the previous two years that have been adjusted down. The adjusted cumulative decline in Giving for 2008 and 2009 was 13 percent so the 2.1 percent estimated increase brings giving to an 11 percent decline from pre-recession highs.
This decline, as we suggested last year, has not been evenly distributed. What is most obvious in this year’s numbers is a significant disinvestment in people in need on the domestic front. As we understand the numbers, the subsector that took the biggest hit in terms of decreased dollars was human services at a 5.6 percent decline in inflation adjusted numbers last year alone. While at first glance, the category appears to have remained stable, Patrick Rooney, of the Center on Philanthropy where the Giving USA number are crunched, says that 75 percent of the relief giving from this country to Haiti last year went as grants and contributions to domestic human service agencies. Backing that amount out results in the 5.6 percent drop.
The giving that is documented is increasingly not in the form of immediately spendable dollars. It includes gifts to foundations that keep increasing even while foundation grantmaking remains distinctly pallid. Additionally, grantmaking from corporations, reported to be skyrocketing here, is increasingly in the form of in-kind products, particularly from pharmaceutical companies. Some link this largess to attempts to get rid of excess inventory but major corporate cash givers to human services such as the financial sector and retail have been declining.
What the Giving USA numbers suggest is not only a crisis of declining charitable giving reaching human services or social safety net groups, but a class divide where the groups that do well in charitable solicitations are those with connections, with the social class interrelationships that give them automatic access. Meanwhile, charitable giving for human services is very much the province of the less moneyed donors, the payroll deduction donors, the people who volunteer at the shelter or food pantry or clinic because they know the tangible importance of those institutions to their communities.
NPQ believes that there is a class divide in our society, and it is reflected in a class divide in charitable giving and in the nonprofit sector. Just as corporate CEO compensation is now back at pre-recession levels even while joblessness persists, the needs of the poor and of the organizations that serve the poor have virtually disappeared from political discourse and from the priority lists of philanthropy. And the incentives -- bequests, IRA rollovers, etc. -- flow toward the institutions with the fundraising infrastructures and the social connections to major donors.
Is it time to rethink the incentives built into our charitable giving structure, where a donation to a sector or institution serving primarily the affluent, is treated identically to a donation meeting the safety net needs of the poor? If we do not rethink the current structures, the creeping and deepening class divide in our society and in the nonprofit sector will only persist.
To read the entire important report click here.
Showing posts with label economic recovery. Show all posts
Showing posts with label economic recovery. Show all posts
Friday, June 24, 2011
Wednesday, December 01, 2010
We all fall down. . .
This has to be in the running for "ad of the year," if there is such an award!
Everyone understands the beauty of and the need for recovery and redemption after failure.
Community depends on both.
Congratulations, GM!
Everyone understands the beauty of and the need for recovery and redemption after failure.
Community depends on both.
Congratulations, GM!
Tuesday, July 27, 2010
America Now
You need to see it here. It is very important work and it is real.
This is what we see every day. It is what we've seen every day for the past 16 years.
I confess: these experiences completely define my life and worldview.
Request: resist any temptation to judge. Decide to simply settle into the reality.
Then, decide to do something about it.
Friday, July 10, 2009
Wealth and spending in 2009
The Dallas Morning News published a story yesterday lifted from the Chicago Tribune entitled, "Rich hold tight to money" (Thursday, July 9, 2009, 13A).
As a result of the current economic crisis, "luxury spending" is down by 10% so far this year. Evidently, a proven indicator of our economy's resurgence can be found in the spending habits of our wealthy neighbors. According to the report, businesses selling luxury items shouldn't expect a "full recovery until 2012."
Here's an interesting fact: the richest 10% of us in this country account for 50% of all consumer spending. And, according to the Federal Reserve, consumer spending fuels 70% of the nation's GDP.
The report includes a brief analysis of the losses incurred by the mega-wealthy since the collapse of 2008. But then, it adds, "One school of thought is that the well-heeled shoppers are holding back because they are self-conscious about their wealth."
That's interesting, don't you think?
I know at CDM we continue to be grateful for our more affluent donors who continue to support our work. In a number of cases these donors have stepped forward to do even more than normal to help those who are hurting due to the faltering economy.
Other donors have disappeared.
Our mission and purpose leads us to work on poverty every day, regardless the state of the economy.
We don't talk much about wealth here.
The complexities of both poverty and wealth are clear to me.
One thing I know for certain, as different as rich and poor may be on the surface, we are all neighbors and our community will work best when we regard one another as such.
What are you ideas about wealth?
.
As a result of the current economic crisis, "luxury spending" is down by 10% so far this year. Evidently, a proven indicator of our economy's resurgence can be found in the spending habits of our wealthy neighbors. According to the report, businesses selling luxury items shouldn't expect a "full recovery until 2012."
Here's an interesting fact: the richest 10% of us in this country account for 50% of all consumer spending. And, according to the Federal Reserve, consumer spending fuels 70% of the nation's GDP.
The report includes a brief analysis of the losses incurred by the mega-wealthy since the collapse of 2008. But then, it adds, "One school of thought is that the well-heeled shoppers are holding back because they are self-conscious about their wealth."That's interesting, don't you think?
I know at CDM we continue to be grateful for our more affluent donors who continue to support our work. In a number of cases these donors have stepped forward to do even more than normal to help those who are hurting due to the faltering economy.
Other donors have disappeared.
Our mission and purpose leads us to work on poverty every day, regardless the state of the economy.
We don't talk much about wealth here.
The complexities of both poverty and wealth are clear to me.
One thing I know for certain, as different as rich and poor may be on the surface, we are all neighbors and our community will work best when we regard one another as such.
What are you ideas about wealth?
.
Tuesday, March 17, 2009
Seeking fairness in the face of the extremist critics of the poor
In the midst of the nation's economic crisis, complete with its trillion dollar bailout plans of various types, comes the news that American International Group (AIG)--recent recipient of over $170 billion in federal bailout funds--will go ahead with plans to pay a group of top executives $100 million in "retention" pay.
Now get this: The group of AIG executives in line for these bonus payments work in the very division or group that is responsible for most of the company's financial woes, failures that now threaten the entire economy.
I've tried to be reasonable on this latest revelation from AIG.
I've read the reports in The Dallas Morning News and The New York Times. I've listened to the arguments from company leaders that AIG may open itself to legal battles if it doesn't go ahead and pay previously agreed upon incentives and bonuses. I've even tried to imagine how this particular group of executives could be considered "essential" to helping AIG through the "work out" process for failed and extremely complicated investment instruments known as "derivatives." These were the very same employees who created the problem in the first place!
I've tried, but I'm far, far from convinced. In my worldview these employees should be thanking their lucky stars that they still have a job of any kind. Bonuses? Surely they jest!
But much more significant for me, and continually swirling in the background noise of the current national atmosphere, are the voices of those who for decades now have been harshly, unfairly, ignorantly and mercilessly critical of the poor in this nation who have turned to us as a nation for a "hand up" out of the continual and very real "Depression" that has ravaged their families during these same decades.
The urban poor seek and have sought only an equal opportunity--not wealth, not a fortune, not wild, unjustified bonus pay for terrible work product. No, just access to adequate, nutritional food. An opportunity to receive the work training necessary to earn a livable wage. An open door for their children to get a good education that might lead them to university work. Decent health care. Housing that is affordable and fit for human habitation. Fairness in criminal courts and a voice before the civil bench. The list reads like a commentary on the ordinary stuff of American life. No luxury, just fair, decent and hopeful.
I've listened to extreme critics of the poor speak of these fellow Americans with harshness, judgment, hatred, ridicule, and disdain. Often the criticism has been couched in racist terms and categories.
Reality for the poor is so terribly different than these ill-informed critics imagine.
The sort of fraud, mismanagement and disgrace that we've observed on Wall Street since last fall simply does not occur among the poor and those in our government groups who attempt to assist them.
Have you ever tried to fill out an application for the Supplemental Nutrition Assistance Program (SNAP), the Department of Agriculture's Food Stamp program? Not an easy task.
Or, how about a Medicaid or Children's Health Insurance Program (CHIP) application? Possibly gone through the process to receive Supplemental Security Income to help make it through life with some disabling medical condition?
Ever try to get a unit of public housing? How about a housing choice voucher for your family? The waiting lists drag applicants out for years and years!
Or, maybe you've worked through a Pell Grant doucment as you tried to help your child get into college and past all of the financial documentation that must be supplied even when you have so little money for which to account!
I've said it before, but it needs to be said again: if Wall Street were regulated like the programs designed to assist and lift the poor, the nation would not be facing the current financial meltdown. The poor in this country face needless and undue complications and clearly "engineered" difficulty to gain the basics for life from the public sector.
The scope and scale of any fraud that occurs in the world of social services and poverty programming pales in comparison to the cost and size of the institutionalized fraud that has been going on in the for-profit sector for decades. Now, we pay the tab for the criminal, unethical and immoral acts of the nation's new generation robber barons.
No, enough already of the hateful and unjust criticism of the poor who simply seek a better shot at a better life. No more of the unsubstantiated accusations of "fraud" and theft by the poor who "rip off the system."
No more!
The time has come to open our eyes to the real fraud, the actual abuse. As is usually the case, the actual "rip off" occurs thanks to the shenanigans orchestrated by the powerful, the well-to-do, the greedy, the wise-guys, the well-connected and the rich.
No surprises here. Just time for a reminder.
The headlines today turn our attention to the real problems we face. Their source will not be discovered among the poor, I can assure you of that. So, just save your breath if you're tempted to blame them.
It's time we woke up. It's time we spoke up and stood up for those who struggle with poverty, and not for those who've caused so much of it. It is far past time for us to engage in the work of seeking a better life for our neighbors at the bottom of this economy.
"Speak up and judge fairly; defend the rights of the poor and needy." Proverbs 31:9
.
Now get this: The group of AIG executives in line for these bonus payments work in the very division or group that is responsible for most of the company's financial woes, failures that now threaten the entire economy.
I've tried to be reasonable on this latest revelation from AIG.
I've read the reports in The Dallas Morning News and The New York Times. I've listened to the arguments from company leaders that AIG may open itself to legal battles if it doesn't go ahead and pay previously agreed upon incentives and bonuses. I've even tried to imagine how this particular group of executives could be considered "essential" to helping AIG through the "work out" process for failed and extremely complicated investment instruments known as "derivatives." These were the very same employees who created the problem in the first place!
I've tried, but I'm far, far from convinced. In my worldview these employees should be thanking their lucky stars that they still have a job of any kind. Bonuses? Surely they jest!
But much more significant for me, and continually swirling in the background noise of the current national atmosphere, are the voices of those who for decades now have been harshly, unfairly, ignorantly and mercilessly critical of the poor in this nation who have turned to us as a nation for a "hand up" out of the continual and very real "Depression" that has ravaged their families during these same decades.
The urban poor seek and have sought only an equal opportunity--not wealth, not a fortune, not wild, unjustified bonus pay for terrible work product. No, just access to adequate, nutritional food. An opportunity to receive the work training necessary to earn a livable wage. An open door for their children to get a good education that might lead them to university work. Decent health care. Housing that is affordable and fit for human habitation. Fairness in criminal courts and a voice before the civil bench. The list reads like a commentary on the ordinary stuff of American life. No luxury, just fair, decent and hopeful.
I've listened to extreme critics of the poor speak of these fellow Americans with harshness, judgment, hatred, ridicule, and disdain. Often the criticism has been couched in racist terms and categories.
Reality for the poor is so terribly different than these ill-informed critics imagine.
The sort of fraud, mismanagement and disgrace that we've observed on Wall Street since last fall simply does not occur among the poor and those in our government groups who attempt to assist them.
Have you ever tried to fill out an application for the Supplemental Nutrition Assistance Program (SNAP), the Department of Agriculture's Food Stamp program? Not an easy task.
Or, how about a Medicaid or Children's Health Insurance Program (CHIP) application? Possibly gone through the process to receive Supplemental Security Income to help make it through life with some disabling medical condition?
Ever try to get a unit of public housing? How about a housing choice voucher for your family? The waiting lists drag applicants out for years and years!
Or, maybe you've worked through a Pell Grant doucment as you tried to help your child get into college and past all of the financial documentation that must be supplied even when you have so little money for which to account!
I've said it before, but it needs to be said again: if Wall Street were regulated like the programs designed to assist and lift the poor, the nation would not be facing the current financial meltdown. The poor in this country face needless and undue complications and clearly "engineered" difficulty to gain the basics for life from the public sector.
The scope and scale of any fraud that occurs in the world of social services and poverty programming pales in comparison to the cost and size of the institutionalized fraud that has been going on in the for-profit sector for decades. Now, we pay the tab for the criminal, unethical and immoral acts of the nation's new generation robber barons.
No, enough already of the hateful and unjust criticism of the poor who simply seek a better shot at a better life. No more of the unsubstantiated accusations of "fraud" and theft by the poor who "rip off the system."
No more!
The time has come to open our eyes to the real fraud, the actual abuse. As is usually the case, the actual "rip off" occurs thanks to the shenanigans orchestrated by the powerful, the well-to-do, the greedy, the wise-guys, the well-connected and the rich.
No surprises here. Just time for a reminder.
The headlines today turn our attention to the real problems we face. Their source will not be discovered among the poor, I can assure you of that. So, just save your breath if you're tempted to blame them.
It's time we woke up. It's time we spoke up and stood up for those who struggle with poverty, and not for those who've caused so much of it. It is far past time for us to engage in the work of seeking a better life for our neighbors at the bottom of this economy.
"Speak up and judge fairly; defend the rights of the poor and needy." Proverbs 31:9
.
Tuesday, February 10, 2009
So, where's the pork?
Talk radio and political pundits continue to fill the airwaves with talk about all of the "pork" in the President's economic stimulus package that he is urging Congress to enact.
I'll be the first to fess-up: I haven't read the 600+ page document. [Note: I'm trying to get a copy for further review.]
What I have seen relates to Dallas, Texas and it comes from a listing of "shovel-ready"projects that the City of Dallas has requested be included in the funding measure. The total tab on these projects: $1,235,145,000.00.
So, how would our fair city spend over $1.2 billion?
Mainly on infrastructure improvement. You know roads, bridges, public safety, water and drainage, sanitation and transportation matters, including airport improvements.
There are also provisions for energy conservation, creation of "green" jobs, and additional police officers (20).
Closer to my world, there is funding to cover demolition of two public housing developments, Turner Courts (where we've been working since 2000) and Rhodes Terrace, just up the street from Turner. Big, big neighborhood improvement here.
Then I found funding to build 55 additional dwellings at Roseland Homes, another public housing development where we have worked since 1996. Again, major improvement for the community.
I suppose one of the largest and most controversial projects involves $386,000,000 for a new convention center hotel, a major community endeavor being pushed forward by our Mayor, Tom Leppert.
Of course, this list is not just about money. It is about jobs and jobs in the short term. If my math is correct, we are talking about the creation of almost 12,000 new jobs that pay a livable wage.
For the life of me, I can't find any pork, not even an "oink," at least not in the portion of the bill that has to do with Dallas, Texas.
Yesterday, I had the privilege of meeting with one of the chief assistants to a member of the U. S. House of Representatives. He informed us that President Obama had called a meeting of Democratic leaders last week to chastise them for including items in the legislation that did not relate directly to stimulating the economy. According to this source, the meeting was very direct and challenging. That sounds like good news to me.
The situation we face today cannot be about politics. Far too much is at stake. It is time for a renewal of community spirit in this city and nation.
.
I'll be the first to fess-up: I haven't read the 600+ page document. [Note: I'm trying to get a copy for further review.]
What I have seen relates to Dallas, Texas and it comes from a listing of "shovel-ready"projects that the City of Dallas has requested be included in the funding measure. The total tab on these projects: $1,235,145,000.00.
So, how would our fair city spend over $1.2 billion?
Mainly on infrastructure improvement. You know roads, bridges, public safety, water and drainage, sanitation and transportation matters, including airport improvements.
There are also provisions for energy conservation, creation of "green" jobs, and additional police officers (20).
Closer to my world, there is funding to cover demolition of two public housing developments, Turner Courts (where we've been working since 2000) and Rhodes Terrace, just up the street from Turner. Big, big neighborhood improvement here.
Then I found funding to build 55 additional dwellings at Roseland Homes, another public housing development where we have worked since 1996. Again, major improvement for the community.
I suppose one of the largest and most controversial projects involves $386,000,000 for a new convention center hotel, a major community endeavor being pushed forward by our Mayor, Tom Leppert.
Of course, this list is not just about money. It is about jobs and jobs in the short term. If my math is correct, we are talking about the creation of almost 12,000 new jobs that pay a livable wage.
For the life of me, I can't find any pork, not even an "oink," at least not in the portion of the bill that has to do with Dallas, Texas.
Yesterday, I had the privilege of meeting with one of the chief assistants to a member of the U. S. House of Representatives. He informed us that President Obama had called a meeting of Democratic leaders last week to chastise them for including items in the legislation that did not relate directly to stimulating the economy. According to this source, the meeting was very direct and challenging. That sounds like good news to me.
The situation we face today cannot be about politics. Far too much is at stake. It is time for a renewal of community spirit in this city and nation.
.
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