As everyone who’s been living for the past decade or so knows, the world has been going through a rough time and money has been tight for most people. The economic downturn has strained personal finances as well as harming multiple international economies around the world. However one of the more unknown victims to these dire economic straits are the charities and philanthropic organizations that relied on people donating money so that they could do their work. It makes sense that when money is tight people are less willing to give to those in need. What people don’t understand is that a lot of the money that nonprofits and charities use to keep things running comes from private donations and that when those dry up, so does the necessary work that many of these organizations do does too.
The United States of America needs to find a way so that people want to donate money to those in need again, even when it seems like they don’t have any money to spare. There are a number of laws in the US that end up hurting the charities as well as the organizations and funds that support them. Private foundations make up most of the money that go to charities and they have shown that they usually only donate the very minimum amount: 5% of their assets. Since charities use this money to also pay staff, they are frequently left with less money than anticipated and have to struggle to make up the rest. A new law is going through congress that will make it so foundations pay less taxes if they donate more every year. This is the first step towards convincing large foundations to donate more money and hopefully, it will help get others to donate more too.
If you’d like to read more, the link is here.
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