How the Economic Downturn is Affecting Nonprofits

In times of economic crisis, non-profit organizations often see an increase in the need for services. SAALT’s partners who provide services to South Asian community members are observing an increased need for housing, job training, and benefits due to layoffs, lack of jobs, and the downturn in the economy.  At the same time, non-profits too are facing the burden of the economic crisis and are having to lay off staff, reduce programming, and dip into reserve funds.

As Daniel Gross, a financial editor at Newsweek, pointed out as early as June of 2008, donations from individual donors are down from what they used to be. And with 80 percent of support to non-profits coming from 20 percent of the people in America, any reduction in giving can have a significant impact on non-profit groups.

How can South Asians who are able to give support the non-profits that are so critical in our local communities? Why give at all? Read an excerpt from a post from Sayu Bhojwani (former Executive Director of South Asian Youth Action and former Commissioner of Immigrant Affairs for New York City on the South Asian Philanthropy Project blog about the importance of strategic giving within the South Asian community:

South Asian philanthropy has until recently meant contributing to causes in the home country and to regional and religious associations here in the U.S. As the community matures, accumulates wealth, and increases in number, more South Asian Americans are contributing to institutions in the United States, targeting resources to issues of concern in the community. Strategically utilized, the “brown dollar” can boost the capacity of fledgling organizations that serve the needs of minority communities across the U.S. and can play a critical role in shaping perspectives about South Asians in the broader American community.

In the fifteen years or so that I have been working in the South Asian community and in philanthropy, I have been frustrated by the piecemeal approach that people often take to philanthropy. South Asians who give, whether they are wealthy or not, are like most others who give—responsive to a personalized request from a friend or colleague, drawn by a personal connection to an issue or organization, or motivated by the need to meet a certain end-of-year level of giving

Read more here <http://southasianphilanthropy.org/2009/02/02/sapp-blog-forum-sayu-bhojwani/>