Philanthropy - Giving Now

One of the hardest hit areas of the current economy is the nonprofit sector. Putting aside the casualties of Bernard Madoff, we are not giving as we used to, and nonprofit revenues are down. When we are afraid, our giving muscle contracts, severely limiting (and sometimes eliminating) the ability of charities to continue doing their good work.

We must prioritize. But still, we care about and want the benefits that nonprofits produce. So, how do we stay generous with them when fear is at an all-time high and our bank accounts are at an all-time low?

Christopher & Amber Marie Bently of Bently Holdings urge people to stay involved with charities. “Even if you need to reduce your giving, keep the charities afloat,” says Christopher. They suggest giving time if you can’t give money. And connect the charities with people who can give money. “It’s not just a rich man’s game.”

Roselyn “Cissie” Swig, a long-time Bay Area philanthropist, agrees, noting the success and importance of grassroots efforts such as that used for the Obama campaign, which reached out to donors on all levels. The message: give what you can, no matter how small. “Times like these do bring out the best in people. Whether someone can give one dollar or one million dollars,” she states, “everyone can be part of the effort to make sure nonprofits are provided for.”

Christopher’s giving has actually, in a way, been a part of his greater financial success. “I set up my life to be generous—consistently,” he states. “For that you need steady returns. You can’t leverage too much, you can’t take that much risk, because you have responsibilities to others.” Giving to others has been part of his ticket to success.

In addition to giving time, donations can take forms other than financial. When an organization realized it couldn’t afford its chosen event location, Cissie hosted the fundraiser at her spacious home. Also helpful are in-kind gifts for raffles and auctions.

The tightening of the economy is also resulting in donors being much more mindful of where and how they are putting those increasingly precious charitable dollars. While some people are decreasing donations across the board, others are giving to those they deem the very most important, or the most in need.

Beverly Spector, a San Francisco–born businesswoman, allocates ninety percent of her giving to the environment. “It is the future of the world,” she states. “If we don’t protect the environment, it impacts everything on earth. Society has been doing it all backwards: we find drugs to cure cancer instead of focusing on the environmental aspects that are causing the cancer. Why not focus on doing the environmental work to reduce mosquitoes in addition to developing a drug to cure malaria?”

Going a step further, Beverly chooses to give to targeted projects within an organization, not to the general fund.

When making her giving decisions, Cissie mentions that she is sensitive at times such as these to smaller organizations that are not particularly popular or high profile, but that provide vital services. “I really pay attention to these organizations because they are particularly vulnerable,” she says. “I make sure to maintain my support, and in some cases do more than normal.” Cissie also takes a hard look at how funds are used, what an organization’s mission statement is, and if the value provided is life enriching. “Soul enrichment is more important now than during normal times,” she points out.

Is there a silver lining for philanthropies in this recession? “There’s great opportunity to help charities work collectively,” Christopher comments. “Before the crisis, many environmental charities were competing with each other—to the detriment of all. Many more dollars went to marketing and fewer to programs. There was duplication and waste. The crisis has forced and motivated nonprofits to band together and raise money together. For example, the cost of a fundraiser can be shared by more than one organization. It’s time for everyone, including charities, to work cooperatively.”

“We’re seeing greater collaboration,” concurs Cissie, “and the emergence of more cooperation.”

 Yet another way to help tranform the world is philinvesting. It’s an opportunity to invest in change. For those who don’t like the idea of “handouts,” this is a way to earn a return on your investment in the betterment of others. This is something my clients love to do, and it has actually increased their philanthropic commitments. The most famous example of this is the Grameen Bank, a microfinance organization and community development bank in Bangladesh—the brainchild of Nobel Laureate Muhammed Yunus.

Perhaps you’d like to ensure that everyone in Africa has clean water. There are companies that need investment capital to provide that water. Are you worried about global warming? You can invest in renewable energy funds or in companies developing products or processes aimed at reducing the impact of fossil fuels.

There isn’t a right or wrong way to do philanthropy. But the silver lining in the recession is that it inspires us to be more creative, and efficient, with all of our resources.