20,99 €
Mehr erfahren.
- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
Rekindle America's faith in charitable and nonprofit organizations In Generosity Crisis: The Case for Radical Connection to Solve Humanity's Greatest Challenges, accomplished philanthropy experts Nathan Chappell, Brian Crimmins, and Michael Ashley deliver a startlingly insightful exploration of the decline of American generosity. The authors offer inspirational solutions to the dramatic downturn in giving in the US, showing us how to re-establish the interconnection that drives reciprocity, love, and generosity. You'll discover how to help reignite the radical connection between us and value-driven organizations that strive to improve life on Earth. You'll also become part of the conversation about generosity as an antidote to isolation and learn to take personal responsibility for the world's most seemingly intractable problems. The book also includes: * Actionable insights from a variety of vantage points informed by the authors' decades of experience in nonprofit and social benefit organizations * A broad and deep analysis of how to revitalize the spark of generosity that once made the American nonprofit sector such a powerful force for good * Strategies for looking beyond technology as the only scalable solution to the charitable deficit An engrossing and essential treatment of practical charity and real-world nonprofit work, Generosity Crisis will earn a place in the libraries of nonprofit leaders, directors, managers, and other professionals with a personal stake in ensuring the continued survival of the American charitable sector.
Sie lesen das E-Book in den Legimi-Apps auf:
Seitenzahl: 325
Veröffentlichungsjahr: 2022
Ähnliche
Table of Contents
COVER
TITLE PAGE
COPYRIGHT
DEDICATION
INTRODUCTION
PART I: OUR PROBLEM
CHAPTER 1:
What Would Happen if Everyone Stopped Giving?
HOSPITALS
COLLEGES AND UNIVERSITIES
ZOOS
MUSEUMS
HUMAN SERVICES
PERFORMING ARTS
TECHNOLOGY
THE TRUTH ABOUT PHILANTHROPY
CHAPTER 2:
Why Our Crisis Exists
“OH, YOU WANT YOUR DIPLOMA?”
WHAT CAN NONPROFITS LEARN FROM THESE STORIES
EXTERNAL FACTORS
TAX CHANGES MADE GIVING TRICKIER
WHY THIS MATTERS—OR TWO PROBLEMS FOR THE PRICE OF ONE
MORE ON DONOR FRICTION
THE CROWDING OUT EFFECT
COMPETITION BETWEEN NONPROFITS
PROLIFERATION OF OMNI-CHANNEL MESSAGING
SHIFTING VALUES TOWARD ALTRUISM
LOSING OUR RELIGION
HAPPINESS IS TRENDING NEGATIVE
SUSPICION TOWARD INSTITUTIONS
INTERNAL FACTORS
TAKING DONORS FOR GRANTED
FAILURE TO STAY TRUE TO THE MISSION
FAILURE TO ENGAGE IN A MEANINGFUL WAY
TECHNOLOGY REINFORCING TRANSACTIONAL VERSUS TRANSFORMATIONAL GIVING
FAILURE TO IDENTIFY THE RIGHT PEOPLE AT THE RIGHT TIME FOR THE RIGHT PURPOSE
INCORRECTLY PIGEONHOLING PEOPLE AS FIXED DONORS OR NON-DONORS
FAILURE TO DISCERN AND MEASURE GENEROSITY'S REAL MOTIVATORS
CORPORATE AMERICA HAS YOUR NUMBER
CHAPTER 3:
From Shareholder Value to Shareholder Values
INSIGHTS FROM JAMAL'S STORY
PATAGONIA
BEN & JERRY'S
THE BODY SHOP
KEY TAKEAWAYS FOR NONPROFITS
“YOU CAN HAVE BOTH” COMES TO RESTAURANTS
WORKERS ARE NOW VALUES-DRIVEN, TOO
CORPORATE AMERICA REDEFINED
WHAT THIS MEANS FOR NONPROFITS
WHY THE CORPORATIONS TOOK ACTION
CHAPTER 4:
The Trust Breakdown
A TALE OF TWO MOGULS
PHILANTHROPY REIMAGINED
THE PUBLIC RESPONDS
WHY THIS MATTERS
SEA CHANGE
WHAT DISTRUST IN NONPROFITS LOOKS AND FEELS LIKE
GOING TO THE DARK SIDE
IT GETS WORSE
EXPLOITING DESPERATE TIMES DOESN'T MAKE THINGS ANY BETTER
THE CORPORATE GAME PLAN: BE MISSION-DRIVEN AND COLLECT BIG DATA
WHAT COMMON CORE CAN TEACH US (EVEN IF IT DIDN'T TEACH THE KIDS)
CHAPTER 5:
The Continental Connection Drift
A TALE OF TWO CHILDHOODS
AND THEN COVID MADE THINGS WORSE
THE ROT GOES DEEPER
WE'RE LOOKING FOR OUR TRIBE, BUT OFTEN BOWLING ALONE
THE UNITED STATES OF SCREENS
PROBLEMS WITHIN PROBLEMS
CORPORATE AMERICA AND THE ATTENTION ECONOMY
FALLOUT
NONPROFITS REMAIN UNSPARED
HOW CORPORATIONS OVERCAME ATOMIZATION
RADICAL CONNECTION IS THE ANSWER
SHIFTING FROM THE TRANSACTIONAL TO THE RELATIONAL
PART II: OUR SOLUTION
CHAPTER 6:
Decoding Generosity
THE SHAVING SHELLACKING
ARISTOTLE RAISED QUESTIONS WE CAN NOW ANSWER
DEMYSTIFYING GIVING
CHANGING MINDS REQUIRED
RADICAL CONNECTION CAN MOVE MOUNTAINS
RADICAL CONNECTION IN THE CREATOR ECONOMY
RADICAL CONNECTION WITH EVERYONE IS IMPOSSIBLE
THE FOUR RULES OF RADICAL CONNECTION
HOW ONE COMPANY BUILDS RADICAL CONNECTIONS
UNPRECEDENTED PRECISION
UNPRECEDENTED PERSONALIZATION
ONE MORE THING: STOP LOOKING AT COMPANIES AS THE BAD GUYS
CHAPTER 7:
When Generosity Is Good for Business—and Society
TURNING OVER A NEW LEAF AT TD AMERITRADE
INSIGHTS
PROFIT
PEOPLE
PLANET
WHY THE TRIPLE BOTTOM LINE MATTERS
SOCIAL RESPONSIBILITY FORMS RADICAL CONNECTION
DEEP CONNECTION
INDUCING JOY, MEANING, AND PURPOSE
HOW SOMETHING CAN BECOME PART OF YOUR LEGACY
EVEN SO, SOCIAL RESPONSIBILITY MUST BE DONE RIGHT
HOW TO KEEP THINGS AUTHENTIC
WHY NONPROFITS SHOULD EMBRACE SOCIALLY RESPONSIBLE COMPANIES
BUT NEVER FORGET THE EMPLOYEES
CHAPTER 8:
Making Generosity Personal
PERSONALLY GAINING BY EMBRACING RADICAL CONNECTION
HELPING OURSELVES—THROUGH HELPING OTHERS
IT LEADS TO PERSONAL HEALTH BENEFITS
IT BUILDS AND STRENGTHENS COMMUNITIES
LET'S NOT LEAVE OUT THE BENEFITS TO FAMILY BONDS
IT AIDS THE ENVIRONMENT (PEOPLE
and
Nature)
YOUR GENEROSITY HOMEWORK?
CHAPTER 9:
Creating Radical Connection with Emerging Tech
TRANSFORMING TECH: FROM A PROBLEM TO A SOLUTION
THE RELATIONSHIP QUANDARY
THE REACHING YOUNG PEOPLE QUANDARY
A HYBRID SOLUTION IN SIGHT?
LEVERAGING TECH FOR GOOD
GENEROSITY'S FUTURE
The Kaplans 2.0
?
WHAT THE NEW KAPLANS CAN TEACH US
CHAPTER 10:
Notes from the Field:
THE FARMLINK PROJECT: CHALLENGING THE STATUS QUO
ILLUMINA: THE TRIPLE BOTTOM LINE MEETS NEXT-GEN GENETICISTS
THE RASKOB FOUNDATION: KEEPING MORE GENERATIONS INVOLVED IN TRADITION
BRISTOL MYERS SQUIBB FOUNDATION: BUILDING TRUST AND COMMUNITY IN AFRICA FOR HEALTH CARE SOLUTIONS
COMIC RELIEF US: HELPING CHILDREN ONE RED NOSE AT A TIME
INDEX
END USER LICENSE AGREEMENT
Guide
Cover
Title Page
Copyright
Dedication
Introduction
Table of Contents
Begin Reading
Index
End User License Agreement
Pages
i
ii
v
vi
vii
xi
xii
xiii
xiv
1
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
119
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
PRAISE FOR THE GENEROSITY CRISIS
“The Generosity Crisis is a powerful analysis of the changing dynamic in society related to giving, philanthropy and brands. The need for a more radical connection between people and organizations may sound like a simple concept; however, it is incredibly complicated and when done properly will change the trajectory of generosity for future generations. Brian, Nathan and Michael have painted a compelling picture for what is behind effective communication in today's world.”
—Chris Foster, CEO, Omnicom PR Group
“As someone who is dedicated to helping nonprofit organizations leverage the benefits of technology, I'm thrilled to see the authors of The Generosity Crisis bring to light many of the critical issues facing philanthropy and nonprofits today. I have seen the positive impact modern technology can have when leveraged for good on accelerating mission outcomes. Harnessing data, cloud, AI and machine learning enables personalization at scale, creating powerful connections and the ability to drive results. I celebrate the practical guidelines and actionable insights provided that will inspire philanthropic leaders towards a new vision for how they prioritize their time and resources to deliver on mission!”
—Allyson Fryhoff, managing director, Nonprofit Business, Amazon Web Services
“We don't have an inequality crisis, a climate crisis or an economic crisis, we have a leadership crisis, driven by vested interests and their selfishness, apathy and greed. Brian and Nathan set out a simple but often overlooked truth: that generosity and connection must be central in our response.”
—Paul Polman, business leader, campaigner and coauthor of Net Positive
“We humans are blessed with an instinct for generosity. But the structures of the modern world can suppress that instinct. We're isolated from each other—and that isolation matters not just for our mental health, but for society's health. When we look closely, we see that generosity is not just a beautiful emotion, it is a fuel for our economy and a foundation for our communities.”
—Jacob Harold, former CEO of GuideStar, author of The Toolbox
“Being a young woman who comes from a different part of the world (India) and having lived in the United States of America for only a short period of time, I was unaware of generosity crisis in America. As I turned over each page into this incredible journey, the facts and information that appeared before me absolutely helped me to find the answers to the many questions I had about generosity in general. My time in America was made easier with the help of this book, The Generosity Crisis, by Nathan Chappell, Brian Crimmins, and Michael Ashley. I can't imagine how challenging it would be to tackle this topic. Thank you for your thoughtfulness and sharing with me this great book of knowledge.”
—Harnaaz Sandhu, Miss Universe 2021
“The WHO Foundation is witness to the transformative power of philanthropy every day. Individuals are supporting the work to stop diseases, provide basic medicines and ensure children and families around the world have equal access to a healthy life. The Generosity Crisis shines a bright spotlight on the unimaginable consequences to humanity should philanthropy erode. But with awareness comes hope. The authors charge the reader to evaluate their responsibility in the world to link arms and provide a healthier and more equitable future for everyone.”
—Anil Soni, CEO of The WHO Foundation, Geneva
THE GENEROSITY CRISIS
The Case for RADICAL CONNECTION to Solve Humanity’s Greatest Challenges
NATHAN CHAPPELL
BRIAN CRIMMINS
MICHAEL ASHLEY
Copyright © 2023 by John Wiley & Sons, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750–8400, fax (978) 750–4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permission.
Trademarks: Wiley and the Wiley logo are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the United States and other countries and may not be used without written permission. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc. is not associated with any product or vendor mentioned in this book.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762–2974, outside the United States at (317) 572–3993 or fax (317) 572–4002.
Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic formats. For more information about Wiley products, visit our web site at www.wiley.com.
Library of Congress Cataloging-in-Publication Data is Available:
ISBN 9781394150571 (Cloth)ISBN 9781394150588 (ePub)ISBN 9781394150595 (ePDF)
Cover Design: Nathan ChappellCover Image: © lidiia/Adobe Stock
For those that strive to make the world a better place, one connection at a time.
INTRODUCTION
The future of generosity in America is not guaranteed.
—The Generosity Commission (2020)
Uninterrupted, those who engage in traditional philanthropy will cease to exist in 49 years. This is a problem of monumental proportions. If the love of money is the root of evil, generosity is the salve that makes the world go around. The challenge is most of the public doesn't realize charitable giving underpins so much of our daily lives and thus it operates without much consideration as to how their personal connection to generosity has immeasurable consequences.
Providing untold benefits, charitable giving offers relief and assistance to the poor and disadvantaged as well as the victims of wars and catastrophes. It also supplies shelter, educational resources, medical cures, advances, and care for our most vulnerable. Besides aiding with environmental causes, generosity contributes to the economy, especially concerning the arts and culture. A 2019 report by the Center for Civil Society Studies at Johns Hopkins University states that nonprofits account for roughly 1 in 10 jobs in the US private workforce, with total employees numbering 12.3 million in 2016.
Despite all this, too many people don't realize the dangers should philanthropy continue its downward trajectory. Today's hospitals, food pantries, homeless shelters, colleges, museums, and the arts would all suffer—if not outright vanish. We had a preview of this risk in 2021. Activists and other concerned influencers worried that charitable donations would decline due to economic contraction from COVID-19. But then something surprising happened. When the dust settled, it turned out $484.85 billion was raised.
Superficially, this seemed good, especially because this figure surpassed the prior year of giving: $471.44 billion. But charity is not outpacing gross domestic product (GDP) and the mix of who gives to charity reflects a growing wealth disparity. Instead, charitable giving continues to increase at the same rate as the economy (~2.1% of the GDP, where it has remained for the past 40 years). Also, fewer US households are participating in traditional philanthropy toward charitable causes.
This means if it weren't for a handful of very generous mega-donors such as MacKenzie Scott, who has given away more than $12 billion since 2019, total philanthropy in America would have decreased significantly over the past few years. Of course, all too often well-meaning pundits celebrate growth for growth's sake, instead of looking deeper to understand who accounts for such beneficence. These days, fewer people are giving and those who do give … give less. The share of households donating to charity has been decreasing annually and fell to its lowest level in decades—just 49.6%—portending even fewer donations in the coming years. Worse, as more people leave faith-based organizations, the engine for so much community-minded generosity, we can expect charitable giving to fall even further.
But the news isn't all bad.
Despite so many reports about how technology is dividing people, novel opportunities exist to use such advancements for myriad humanitarian purposes. We live in an era of personalization and customization, which translates to the concept of a “precision” approach to consumerism. Why not employ the same meticulousness in the service of innovating how charities prospect donors? Since 2017, coauthor Nathan Chappell has led efforts to leverage cutting-edge artificial intelligence and big data to enable organizations to better understand the true motivations of generosity and identify why some people align with a specific cause.
At the heart of such efforts is a disruption of conventional thinking toward generosity. For too long, nonprofits and the like have relied on a person's wealth as the key metric for predicting someone's willingness to give. But a limited approach is at the root the crisis in US giving. Instead, tomorrow's nonprofits can achieve better fundraising outcomes by measuring individuals' depth of affinity to worthwhile causes. Empowered by this insight, they can (re)focus their efforts toward cultivating deep, sustaining relationships by fostering what we term Radical Connection. Also, collaborating with progressive for-profit companies serving the public good in essential ways can help flip the giving script.
Fortunately, for the first time in history, it's possible to dramatically increase precision and personalization in services and soft industries using big data and adaptive and cognitive computing powers. Marrying digital and analog activities, we can better connect with mission-aligned people and groups. Better yet, by emphasizing innovative ways of giving, including volunteering, crowdfunding, mentoring, and other forms of service-ship, we can especially teach the younger generation about new ways of giving back. Beyond exploring these key strategies in the following pages, we will show how a confluence of nonprofits, for-profit companies, governmental entities, and NGOs are trailblazing fresh and exciting paths toward greater giving for the benefit of all.
To get there we need to look at this issue with fresh eyes. Philanthropy at its core is really about connection, not money. We will highlight this idea throughout the book. In fact, the ancient Greek meaning of the word, “for love of humankind,” has nothing to do with money. Yet too often, philanthropy is thought of as something only wealthy people do. In truth, giving money, offering advocacy, or providing volunteerism constitute the outward expression of connection. And yet, what was once first nature to many legacy nonprofit causes—building and fostering deep authentic relationships transcending generations—has been replaced by surface-level transactions, leaving an unbalanced relationship between mission and benefactor.
This very imbalance and the transactional nature of many modern charitable organizations is at the heart of our Generosity Crisis. Generosity as a civic responsibility is at an inflection point, requiring a positive outlook and new modes of thinking to reverse negative trends toward giving back. By doing so, we stand a chance at solving some of the world's most pressing issues. Transforming a depressing crisis into a pivotal opportunity, let's imagine a brighter future in which once disparate groups and individuals regain their sense of Radical Connection and commitment, resulting in greater abundance and a renewal of goodwill.
Last, as we dive deep to understand the root causes of the Generosity Crisis, let's fully embrace what's at stake and explore what's needed to reverse the downward giving paradigm. We hope this book inspires you to think about your personal views on the relationship between generosity and connection and to create an open dialogue about the changing definition of philanthropy.
PART IOUR PROBLEM
CHAPTER 1What Would Happen if Everyone Stopped Giving?
Kelley woke up soaked. Nine months pregnant, her water broke at dawn. In seconds, her husband gathers their stuff, and they rush out the door. They arrive at the hospital to receive the shock of their lives. The doors are locked. A sign reads: “Closed until further notice.”
Across town, Cameron goes to his mailbox excited to receive grant approval to study the effects of dwindling coral reefs. Three years into his Ph.D. program, Cameron has poured his heart into composing a research grant submission to net $5 million. He even put off proposing to his girlfriend so he can relocate to Australia to work on reversing the reefs’ rapid decay. To Cameron's dismay, he receives a rejection letter from his university informing him all future research is being halted.
At a nearby zoo, Maria sheds tears, but not for the job she just lost. She cries because she knows what will happen when her employer closes. Once a sanctuary for endangered species, the zoo will have to sell its animals to the highest bidder.
At this same moment, lifelong curator Pierre slumps deeper into his swivel chair. Watching footage from CCTV cameras all over the building, he sees priceless works of art carted off for auction. In weeks, Impressionist works, some hundreds of years old, will be bought by private collectors. He sighs, recalling a line from the Indiana Jones movies, “It belongs in a museum!”
Down the street, a sad pastor tells a family of three they can no longer receive food from his pantry. Two little kids and their mom relied on this benevolence ever since she lost her job last year. No more. The program is ending. So is the church that funded its operations.
This is just the beginning. Before long the following examples describe what can happen:
Clinics stop providing free health care screenings.
Starved of funding, theaters, operas, and symphonies cease performing.
Homeless shelters shutter, leaving the displaced to fend for themselves.
Welfare services terminate, exposing at-risk children to abuse.
Scientific exploration grinds to a halt at observatories and labs.
Imagine you woke up one day to a world in which all generosity ended. The described outcomes are but a small sampling of what you could expect, and not so far-fetched. Generosity in America is on a disastrous trajectory. The year 2019 represented the lowest giving level since Giving USA (GUSA) began compiling national philanthropic statistics 40 years ago. According to a report by the Indiana University Lilly Family School of Philanthropy, in 2000 an estimated 66% (one-third) of Americans gave to charity. By 2014 this figure had decreased to 55%, and in 2016 it had fallen to just 53%. The past three years were even worse. At present, less than half (49.6%) of Americans give to charities. The nation is becoming less giving every year, and it doesn't take a degree in mathematics to see where this trend is going or economic proficiency to project the negative consequences.
Unfortunately, the public doesn't hear the Generosity Crisis message enough. If at all. Instead, people are led to believe their contributions are inconsequential and that charity, and the services provided through generosity, will continue as they always have. Nothing could be further from the truth. “This belief of not having enough to give to make a difference is similar to the argument some people make when it comes to voting,” explains Sarah Ford, marketing director at America's Charities. “But try telling a senator who wins by 18 votes that your vote doesn't matter and I promise they'll give you an earful.” Without charitable gifts, so many societal mainstays and benefits we take for granted will vanish. Let's review examples by category.
HOSPITALS
GUSA reports the health industry received charitable donations of $42.12 billion in 2020. This figure is essential to the functioning of hospitals throughout the nation, from caring for the sick, providing ancillary services to support families through their treatments, to research and development for novel care practices and cures. As an association that surveys the health care landscape, Incredible Health documents as of September 21, 2021, “the two main types of hospitals in the United States are nonprofit and for-profit hospitals. According to the American Hospital Association, 76% of community hospitals are nonprofit.”
This means should philanthropy cease, Kelley's nightmare scenario is not at all unrealistic. Thousands of local nonprofit hospitals would close, forcing patients into government-run or for-profit medical centers with all the high costs and lack of options you might expect. Many health care jobs would also vanish overnight, along with critical research and development. With fewer hospitals and health care professionals, vast lines to access care would resemble those of third-world countries.
COLLEGES AND UNIVERSITIES
Higher education received $71.34 billion in donations in 2020, again according to GUSA. There is little debate that tuition costs are astronomical, having risen at five times the inflation rate for the past 50 years, according to the College Board. We can scarcely imagine what would happen if alumni and other stakeholders stopped giving. To illustrate the problem, consider 2019's undergraduate tuition cost $55,046 at University of Notre Dame, coauthor Nathan's alma mater. After grants, scholarships, and other subsidies, much of which is funded though charitable gifts to the university, this figure drops to a more manageable $30,536.
Also, it should be noted, colleges offer financial lifeblood to their communities. Take South Bend, the city surrounding Notre Dame. According to citytowninfo.com, “South Bend's diversified economy primarily consists of education, wholesale and retail trade, healthcare, and government. Notre Dame University is the city's largest employer and has a significant impact on the local economy. The university also adds to the economy by partnering with local companies for research and development projects.”
If colleges at large lost their donations, most students could no longer afford to earn degrees. Likewise, the businesses and people who depend on the commerce, not to mention research and medical resources contingent on their existence, would suffer. Academic projects, such as studying diminishing coral reefs pursued by the Camerons of the world, would never get off the ground.
COVID-19 gave us a taste of such a disaster when so many students found themselves unable to continue their studies. As Jessica Dickler reported for CNBC in June 2020, “With millions of Americans now out of work, one expense is suddenly out of reach for many: higher education. More than half, or 56%, of college students say they can no longer afford their tuition tab, according to a survey by OneClass, which polled more than 10,000 current freshmen, sophomores and juniors from 200-plus colleges and universities across the country.”
ZOOS
GUSA reported that individuals gave $16.14 billion to environmental and animal causes in 2020. Some people hold a limited view of zoos as places to stare at lions and tigers and maybe pet a chinchilla. But these facilities do much to protect and sustain nature, especially endangered species. As Amber Wyard explains for lemurconservationnetwork.org, “Although recreation is still an important focus for zoos, they now place a lot of value on education, research, and conservation.”
To this point and according to Association of Zoos & Aquariums, more than 230 top zoos and aquariums “provide safe habitats, medical care, and a nurturing environment for their animals.” Using the funds they receive from donations, they breed and save animals, including gorillas in Rwanda, lemurs in Madagascar, and vultures in Southern Tanzania.
If people stop believing in the virtues of giving and halt their philanthropic monies, these conservation efforts would cease, curtailing progress made in the last 100 years; it's also likely many animals would end up in private hands. We can expect less accountability should this occur, leading to dramatic increases in animal trafficking as depicted in the disturbing 2020 documentary Tiger King.
MUSEUMS
According to Sotheby's Institute of Art, three categories of revenue support nonprofit museums:
Charitable contributions
Program services, such as ticket admissions
Earned income, typically via merchandising
Of the three sources, the first category provides the lion's share of funding, accounting “for over half of a museums' revenue at an industry standard of around 60%.” Should philanthropy end, it would decimate museums' fundraising model. After all, GUSA reported the arts, culture, and humanities organizations received $19.47 billion in donations in 2020.
Loss of museums would devastate not just creatives but also society. In a 2015 interview with Alliance Magazine, Sir Nicholas Serota, director of the UK's Tate Modern, reflected on how philanthropy enables the arts, specifically the world's most popular museum of modern and contemporary art. “None of Tate's expansion or the growth in audiences from 1.75 million to 7.75 million over 20 years would have been possible without a partnership between secure public funding…. One of our first significant donations for Tate Modern came from a man not noted for his enthusiasm for modern art. He was motivated to give because he recognized the need for London to have a museum of international contemporary art and he knew that cultural investment in a relatively poor part of London could transform the area economically and socially.”
Lacking such generosity, we could expect to see chains on doors and vacant museums as their business model collapsed. Like the zoo debacle, art pieces, both modern and antiquated, would be auctioned to bidders. No longer could the public enjoy their cultural birthright. In this scenario, even the Mona Lisa would depart the Louvre, undoubtedly snatched up by a rich collector.
British journalist A. A. Gill helps to explain what we stand to lose: “If the world were to end tomorrow and we could choose to save only one thing as the explanation and memorial to who we were, then we couldn't do better than the Natural History Museum, although it wouldn't contain a single human. The systematic Linnaean order, the vast inquisitiveness and range of collated knowledge and beauty would tell all that is the best of us.”
HUMAN SERVICES
Our scenario depicting the closure of shelters is not fantastical. GUSA reports the broad category of human services received $65.14 billion in donations in 2020. According to Feeding America, food insecurity in America is a pervasive issue, with 38 million adults and 12 million children undernourished, not knowing where they will get their next meal. Meanwhile, homelessness continues unabated. As of 2022, estimates from two key sources of data—the US Department of Housing and Urban Development Point-in-Time Count and the National Center for Education Statistics Count of Students—puts the number of people lacking permanent housing between 600,000 and 1.5 million, of which 33% are families with children.
In 2019, the Council of Economic Advisers sought to explain the crisis in a paper titled The State of Homelessness in America. “Approximately 65 percent are found in homeless shelters, and the other 35 percent—just under 200,000—are found unsheltered on our streets (in places not intended for human habitation, such as sidewalks, parks, cars, or abandoned buildings).”
A 1:1 relationship exists between the level at which people give and the homelessness crisis at large. Sadly, we've grown accustomed to seeing long lines to shelters and foodbanks. Although government funding plays a role in addressing this challenge, it cannot fix the crisis on its own. Human service issues, such as food insecurity and homelessness, can only be solved via public-private partnerships, underpinned by the generosity of individuals who believe in supporting their fellow brothers and sisters.
Zeroing in on one organization, The National Association of Free & Charitable Clinics, we gain a deeper sense of the assistance it provides, especially for those requiring medical care. Self-described as “the only nonprofit 501(c)(3) organization whose mission is solely focused on the issues and needs of the medically underserved throughout the United States,” it serves the poor, especially those in need of health services, via a robust network of 1,400 free and charitable clinics and pharmacies.
In 2020 the NAFC received $286 million in donated medications and supplies. Without critical monies and product donations, we could expect the closure of many free clinics supporting underserved populations by offering free or reduced cost services:
Diabetes programs
Dental cleanings
Eye exams and glasses
Cancer screenings
Mental health and psychiatric services
By no means is this list exhaustive. If we consider only the health challenges we have encountered over the years, not to mention our friends and family members, we can appreciate the issues facing vulnerable individuals who experience higher rates of serious health conditions. Also, loss of shelters and medical facilities will unduly affect children, especially those lacking stability and/or a guardian. This problem compounds for nonlegal citizens, poised to the bear the brunt of the pain should these facilities and amenities vanish from lack of funding.
PERFORMING ARTS
This sector depends on generosity from patrons and the public. Just as museums remind us of our history through appreciating paintings and exhibits, the performing arts connect us to our higher selves by entertaining and inspiring. Or as Investing in Communities (IIC) puts it so eloquently, “Arts and culture charities is a broad term for organizations that exist to promote and develop artistic expression. They preserve our cultural heritage through media including exhibitions and performances…. Arts and culture charities encourage education and appreciation of numerous artistic disciplines including painting, sculpture, writing, photography, puppetry, film, theater, opera, dance, and music. By supporting one of these organizations, you are showing your support for the creative expression of human experience.”
As IIC makes clear, a fulfilling life encompasses more than just keeping a roof over one's head. By stanching the blood of the performing arts, we cut ourselves off from what it means to be human, losing out on a full spectrum of artistic expression so vital to the experience of being. We take these things for granted at present. As a civilized nation we expect they will always be there for us, but they could slip away if we are not careful.
TECHNOLOGY
The COVID-19 pandemic revealed in technicolor horror the vulnerability of our global community. Within weeks, a deadly virus spread from one nation to engulf the world. Yet, this outbreak differed from past scourges. People could turn to key medical innovations. Some, such as vaccines and treatments, emerged in record time to counter the disease's effects and keep us connected. A variety of teleconferencing solutions, for instance, acted as a godsend, especially for businesses and schools, enabling their functioning, albeit in a remote capacity. “The nonprofit world was profoundly changed by COVID—but there was a silver lining,” says Maria Clark, executive vice president of partnerships at GoodUnited, a longtime nonprofit leader personally affected by the pandemic. She said the following in a 2021 article for Unite.AI: “Innovation became a necessity, not a luxury, which stimulated the adoption of new strategies and partnerships in order to continue fueling the important work nonprofits are expected to deliver.”
Those affected by the Black Death or bubonic plague couldn't expect such reprieve. But innovation costs money. It requires benefactors who believe in science. In their review of Evan S. Michelson's 2020 book, Philanthropy and the Future of Science and Technology for Issues in Science and Technology, columnists Adam Millsap and Neil Chilson trumpet this cause. Specifically, they connect the dots between charitable giving and recent technological feats. “In the book's most compelling section, Michelson discusses the evolution of foundation giving over the 20th century.… For example, The Rockefeller Foundation funded research in cellular and molecular biology with the purpose of eliminating disease, and indeed that work helped to eradicate hookworm and yellow fever. Michelson makes a very brief mention of The Rockefeller Foundation's support for the agricultural Green Revolution, which dramatically increased the world's food supply and arguably preserved and advanced democracy during the Cold War.”
Now, what might happen should this investment in our future vanish? We could expect any of the following:
Significant increases in the digital divide
Less funding for disease and wellness research
Severe limitations on climate change initiatives
Diminution of advancements in AI and computer applications
Decrease in space exploration
Curtailed WIFI, laptops, and phone distribution to the needy
As this list shows, daily life relies on philanthropy. Much of what we have come to expect and enjoy comes from the kindness of others. Faith-based organizations especially rely on donations, topping GUSA's list of contributions at $131 billion for 2020. Without such generosity, not only would churches close, the broad swath of ancillary benefits those churches provide would disappear, including social services such as food pantries.
So far, we have discussed various categories as potential victims of a giving chopping block. Yet even this depressing portrait doesn't go far enough. Another emergent problem looms. As the ongoing supply chain crisis reveals, we live in an integrated global economy. Events no longer happen in isolation; rather, they have far-reaching, systemic impacts.
A good example of such economic dependence can be found in Ningbo. When China locked down this industrial port in January 2022 for a COVID-19 outbreak, it didn't just affect the local economy. As the third largest global container port, the closure ramifications were felt as far away as the US, affecting consumer delivery times and incomes of truck drivers. Revealingly, an entire ecosystem of businesses, nonprofits, and individuals interact with what we may call the Generosity Economy.
Here are some critical statistics as of 2021:
More than 10 million nonprofits and nongovernmental organizations exist worldwide (
NPAction.org
).
Roughly 1.8 million 501(c)(3) organizations are based in the US, including 501(c)(3) public charities, private foundations, and a variety of membership and professional organizations (Nonprofit Trends and Impact, 2021).
Nonprofits account for 5% to 10% of the national economy and 10% of American employment (
Stanford Social Innovation Review
).
The US nonprofit sector employs nearly 12 million people, making it the third largest employment industry, behind retail and manufacturing (Johns Hopkins University Center for Civil Society Studies).
To illustrate but a fraction of the labyrinthine workings of so many interrelated stakeholders and how they might be affected by the crisis, consider one more stat from IBISWorld. “New York (1,523 businesses), California (1,186 businesses) and Texas (769 businesses) are the States with the most number of Community Housing & Homeless Shelters businesses in the US.”
Now, what might happen should so many businesses fold due to a philanthropy cessation? It would not only devastate those who own and/or work at these companies but also would harm their families and the people who depend on them (not to mention the individuals who benefit from their charitable works). But the problem wouldn't stop there. Because we now live and work in an integrated global economy, deleterious effects would spread. If just one of the 769 businesses in Texas supplying shelters went under, it could wreak havoc with vendors. This could mean cancelled contracts for a host of tangential services, from building to transportation to food supply.
In short, negative ripple effects from annual decreases in US generosity have created this systemic Generosity Crisis. Left unchecked, it will touch all
