Tough times for Edmonton charities

Times are tough right now if you’re a charitable organization. Here in Edmonton, the outlook is pretty grim for a number of organizations:

Add up the above numbers, and Edmonton charities are short about $3 million. That’s a lot of money. The scary part is that I’m sure there are more than I haven’t been able to find yet.

The two bright spots I’ve seen are Santas Anonymous, which said it would meet the demand this year, and Stuff-A-Bus, which exceeded its goal.

While the news is terrible, it’s not that surprising. Last year donations across Canada dropped 5.3% from 2007 to $8.19 billion, the lowest figure since 2005. I’m sure we’ll see a similar or perhaps larger drop for overall giving in 2009. The fact is, philanthropy is a lagging indicator. This data is from the US but I think it applies to us too:

During the last 40 years, according to data provided by Giving USA, charitable giving fell in real terms (i.e., adjusted for inflation) in years in which the economy was in recession, or in years in which there was a significant stock market dislocation. Giving fell in 1980, 1987, and 1990. The last time the economy contracted was in 2001. That year, according to Giving USA, charitable giving fell 2.3 percent in real terms, after having boomed along with the stock markets and the economy at large in the late 1990s. But while the economy resumed its growth in late 2001, charitable giving slumped in real terms in both 2001 (down 1.4 percent) and 2003 (down 0.2 percent).

It’s a lagging indicator because charitable donations are seen as a luxury. You pay your bills first, then you make a donation. Not everyone sees it that way, of course, but on the whole, that’s the reality.

Hopefully that means local charities will have a better year in 2010.

There’s still time to help this holiday season! Here’s how:

The 50 Most Generous Philanthropists

Post ImageBusinessWeek has once again come up with their annual list of the 50 most generous philanthropists, and for the first time in a while, Bill and Melinda Gates do not top the list! They were unseated this year by Intel co-founder Gordon Moore and his wife Betty. From the Drudge Report:

The Moores, like a growing number of big givers, take a businesslike approach to philanthropy. Rather than throwing money at problems, they try to ensure the most productive use of their dollars by funding projects they believe can produce “significant and measurable” results. This desire for accountability is one of the most important themes in this year’s top 50 individual donors list.

The complete list and associated articles will be available in the November 28th issue of BusinessWeek which hits newstands on Monday. Looking at the top 26 on the Drudge Report page, I see that seven of them are technology-related like Microsoft, Intel, and eBay. Some of the other companies represented include Home Depot, Wal-Mart, CNN, and Bloomberg. It’s interesting to juxtapose this list with the Forbes ranking of the wealthiest people in the world. Some individuals are on both, while others are quite notably absent. I guess philanthropy isn’t for everyone though.

Read: BusinessWeek