The end is in sight: 2020 will end in 10 weeks; voting will end in 2 weeks. Who knows when the election will end? I hope you received my weekend letter highlighting the funding needs of the Election Integrity Fund (EIF) and similar efforts and weighing in on the urgency to do whatever we can in the next two weeks to ensure a democratic election (also see the attached article). Although I have to admit–it’s been 48 hours since that letter was sent and we still have not received a single $5 million lead gift to the EIF! While there is plenty of time to meet the one-year (2020) Crisis Charitable Commitment, election-related funding is now or never.
Let me take a moment to explain two things about the CCC. First, the #1 goal of the CCC is to increase the amount of money–$240 billion in 2019–supporting nonprofit work, particularly in response to the crises highlighted by the pandemic. The CCC’s Charitable Standard would essentially double the percentage of giving by private foundations and ultra high net worth individuals (UHNWI) from what has been for at least a decade the annual average: for the larger foundations, 5% of endowment and for the 0.1% of U.S. households that make up the UHNWI class, 1% of net worth. That means CCC signatories give a whopping $150 million more to nonprofits than if they were just doing business as usual.
Second, there are many foundations and UHNWIs who are already meeting the Charitable Standard but wonder why they should sign onto the CCC? The reason is simple: donors influence other donors. A long and impressive list of donors demonstrates that giving more is both responsible and reasonable, which will have greater impact on the broader donor community to significantly increase the charitble pot. And while we might be biased towards democracy, racial justice and broader social change philanthropy, additional funding for direct services to the needy, to visual and performing arts and artists, healthcare and education is also critical.
Deloitte Monitor Institute, a consulting firm, published a report in July on scenarios for the nonprofit world over the next 18 months. The two key takeaways are: “Even if the pandemic miraculously ended tomorrow, communities will be facing daunting resource gaps in dealing with the economic and health impacts of the last few months” and “early estimates of contraction in the nonprofit sector range from 10 percent to as high as 40 percent.” Putting these two conclusions together paints one scary picture.
A quotation from a June 10 New York Times article captured the view from the ground: “Frankly, the house is on fire right now, and if they don’t save the nonprofits, they’re going to have to rebuild the entire sector, said Chitra Hanstad, executive director of World Relief Seattle, which provides services to refugees, asylum seekers and others. Its funds running low, the group is planning a round of layoffs.” Not unlike small businesses and restaurants, nonprofits–from community organizing groups to community service groups to theaters and colleges–are facing layoffs and possible permanent closure.
There is another view that probably represents many in the large foundation and UHNWI class. Larry Kramer, President of the William and Flora Hewlett Foundation quoted in that Monitor Institute survey, provides a justification for not digging deep now: “We tend to overreact to new risks and then we tend to absorb them and move on. That will ultimately happen here.”
I’ll go with Elvis on this one: “It’s Now or Never.” The Crisis Charitable Commitment is a one-year (2020) commitment to give more. As the 55 CCC signatories–and counting–have demonstrated, foundations and UNHWIs can and should step up to the plate now.
P.S. I want to share two responses to the letter I wrote two weeks ago about numbers, numerology, and YO, which is eleven and its multiples. It turns out that YO has a religious following; and “yes, 99 is an auspicious number. In Feng Shui, it represents the following: promotions, accomplishments, excellent reputation, stability and strong convictions. In numerology, 99 reduces to 9 (9+9 =18 which when added together reduces to 9). Auspicious!” And you thought I make this stuff up!!