What is the worst case scenario for philanthropy?
In 2007, Americans donated more than $306 billion to charity despite uncertainty in the housing markets and the rising price of oil. In the last forty years, the worst one year decline in inflation-adjusted philanthropy was the period 1973-74 during the oil embargo. The decline was 5.4%. If 2007-2008 sees an equivalent decline, the total amount of charitable giving in 2008 will be $289.5 billion. This will be approximately the amount of philanthropy available in 2005. Q: Still, a decline could be real. How should we react? A: The fact is that the only rational reaction is to move forward. The nonprofit sector is one of increasing resource competition that has built over the last 25 years. Between 1982 and 2007, the number of public charities has increased by 194% while the real dollar value of philanthropy increased by 141%. The competition for resources is long-standing. Q: But is philanthropy not deeply tied to the economy? A: Yes, in the sense that philanthropy has changed within a
