Monday, August 10, 2009

Tanking Contributions May Accompany a "Jobless Recovery"

The Nonprofit Quarterly's Rick Cohen related that a so called "jobless recovery" likely means very bad news for charitable giving. Joblessness that is predicted to extend well into the economic recovery along with increased rates of saving fueled in part by economic insecurity result in less disposable income, and that likely will or is already showing up in declining donations by individuals.

President Barack Obama called it right during his August 1st weekly address to the nation: the recovery won't be a recovery" as long as we keep losing jobs." With increasing prospects of what economists call a "jobless recovery," confirmed by no less than Federal Reserve Chairman Ben Bernanke, the pain suffered by most Americans will be prolonged even after corporate profits and stock market values climb. Some of that pain will be felt as the most generous of Americans, middle class working people, will find themselves hard-strapped to maintain their charitable generosity. Read more here. Rick discusses unemployment and past charitable trends.

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