Friday, June 27, 2008

Renaissance and the price of gas...

"Canada is undergoing a renaissance in giving: big gifts are getting bigger while new sources of funding are emerging across the demographic spectrum with everyone from new Canadians to kids choosing to give. At the same time, competition for donor dollars among worthy charities is rising, putting an increasing onus on how organizations engage donors and demonstrate value." Globe and Mail, June 26, 2008


I just paid $51.00 to fill up my Toyota Corolla....

Will the changing economic times impact non-profit dollars?

Without a question expenses are going up. Postal rates, delivery charges, travel and overall cost of operation area all rising. This makes it difficult for non-profit organizations to maintain appropriate cost/program ratios.

Dr. Keith Seel from the Institute for Non Profit Studies at Mount Royal College says that changes to the traditional model of funding is just starting to change in Canada. The traditional model being the "400-year old philanthropic culture that put the responsibility of charitable spending on the shoulders of the wealthy merchant class."

Interesting.... but perhaps I'm jaded. The most successful organizations I work with have a healthy balance between the the "wealthy merchant class" (generally called "major gift donors") and the ordinary Canadian. Organizations built of the faithful monthly gifts of individuals have a strong foundation. $35 every month from 35,000 people makes a big impact.

Public charities can learn a lot from the faith community who has a built in penchant for the "tithe." That setting aside of financial aid for those who need it is a revolutionary idea -- and it illustrates the impact of effectiveness when many people join together to accomplish good.

As the economy changes non-profits will have to be more creative, use more innovative acquisition methods and be centred on the return on investment. I believe that generosity is a part of the human psyche and well-positioned charities will continue to grow.

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