The economic impact of the COVID-19 crisis remains to be seen. It will take months and years to process the data of closures, jobs and wages lost, increased bankruptcies. Not to mention the impact on specific industries like healthcare, retail and hospitality that might be specifically impacted. The impact on addiction and recovery groups or individuals will never be able to be measured. Another trickle down impact that may not be at the top of mind but will have major impact on recovery is charitable giving.
Services provided by charitable groups, many of which are in person, have taken a major hit. Charitable giving – as total incomes take the hit from many millions of newly unemployed – may be seeing a major dropoff. To that end, the usual annual day of giving known as #GivingTuesday, regularly scheduled ahead of the holiday season on the first Tuesday of December, had a special #GivingTuesdayNow this week.
“The day is designed to drive an influx of generosity, citizen engagement, business and philanthropy activation, and support for communities and nonprofits around the world,” said the #GivingTuesday group that promotes the annual day. “Communities are encouraged to take action on behalf of first responders, as well as the world’s other – often forgotten – frontline workers: the nonprofits and community organizations that feed, house, educate, and nurture neighbors impacted by the global pandemic.”
Last year’s December day generated more than $2 billion in giving, in the United States alone.
Indiana University’s Lilly Family School of Philanthropy recently released a report looking at the possible impact of COVID-19 on charitable giving. The report was part of the Philanthropy Outlook that projects giving over the next two years. The research team that put together the report included models for what would happen if a recession similar to the 2008 variety took place.
Some of the news was grim. Giving was estimated to be nearly 11 percent lower than a baseline projection that kept the economy at the average growth rate. But not all the news was bad. An analysis found that foundation actually gave more gifts of $1 million during the last Recession. American giving to human services increased in inflation-adjusted terms in both 2008 and 2009. Giving to food banks increased 32 percent in 40 cities from 2008 to 2009.
One of the findings from the report was that, despite recessionary qualities in the economy, asking for gifts would still be recommended for charitable groups. The report recommends staying in touch with donors and communications about the mission.
“For eight years, GivingTuesday has celebrated grassroots generosity, and has built a movement that empowers millions of people to give, engage their communities, and find common ground,” said Rob Reich, Faculty Co-Director, Stanford University Center for Philanthropy and Civil Society and chairman of the board for GivingTuesday. “We are all confronting the same challenge right now, we need the giving spirit more than ever.”
