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Saturday, December 25, 2010

Charity Navigator's President & CEO On TV

Ken Berger discusses how charities are doing in the recession on Fox Business News.

Here are the charitable giving trends that Ken discussed on the show:
  • Individual charitable giving remains strong and is anticipated to be at the same level as last year (that is roughly $230 billion!). This is the bright spot in an otherwise difficult environment for charities. Americans remain recession resistant in their charitable giving!
  • Corporate and foundation giving declined last year and is anticipated to remain lower than in prior years due to lower revenues and investment income as well as a very conservative view on cash flow given uncertainty.
  • Government funding of nonprofits is shrinking as state governments are forced to cut back. This is especially challenging for safety net charities that rely heavily on government contracts and grants. When the stimulus money runs out, this situation could get even worse.
  • Challenges continue for museum and arts organizations as people are focusing more on immediate needs of their local communities.
  • Religious organizations are also beginning to see some signs of cutbacks in giving but overall continue to get the largest share of individual donations.
  • International organizations in Haiti are hoping to see an influx of support to address that countries long term challenges, but do not expect to see anything like the initial outpouring of support. However, they are hopeful that people who gave this past January will give once again during the holiday season.
  • Charities that offer donors a specific opportunity to help people like DonorsChoose (funding a specific need in a classroom in a school) or Kiva (providing a micro-loan to help a poor person start a business) continue to grow in popularity.
  • Charities that consistently measure the impact of their work – such as Nurse-Family Partnership – continue to grow in popularity as donors look for evidence of results and not just anecdotes (stories) and good marketing.

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