Where Oh Where Have All The Grant Funds Gone?

Americans are feeling the economic effects of higher gas and food prices as well as the recent major issues in the financial markets. Nonprofit organizations are no exception. Or are they?

According to a June 28, 2008 article in the Philanthropy Journal, Americans "donated $306.39 billion to charity in 2007, more than ever before." Giving USA states that is a "3.9% increase compared to 2006." To put this in perspective, individuals give just about 75% of that $306+ billion dollar figure and half of that amount was directed to religious organizations. Giving from foundations rose 12% and corporate giving fell by less than 1% in 2007.

So where are these funds going? Nonprofit executives that I talk to around the country are scratching their heads. Across the board their organizations are experiencing declines in grant funding. These are the people on the front lines providing services to people in need, and they are cutting back. They are scaling down services, staff and using other cost savings methods.

So again, where are these funds going? It is my unscientifically proven belief that more individual, grant and corporate gifts are going to disaster relief efforts. Rightfully so. Communities ravaged by earthquakes, fires and hurricanes need help-and a lot of it.

Meanwhile organizations that serve other needs are continuing to scramble to keep their doors open.