The economic slump we’re crawling out of has done big damage all over the place: to employment, home values, businesses, and, of course, investment portfolios.
Put charities on the casualty list, too. Charitable organizations have been hit in multiple ways. Demand for charities’ services has risen because of the tougher economic times. Charities’ investment portfolios and endowments have been hammered. And charitable giving has fallen because so many individuals have suffered declining incomes and assets. Boston College’s Center on Wealth and Philanthropy estimates that charitable giving by individuals in 2009 was $217.3 billion, down more than $25 billion from 2 years earlier.
In our household, we know how lucky we’ve been. We didn’t lose our jobs, and our investments have mostly recovered from the markets’ downturn. Knowing the pressures on charities—my wife worked in the nonprofit sector for much of her career—we’ve been discussing how to make sure our own contributions of dollars and time do the most good.
