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/>