The cost of living crisis is a double blow for charities who need to pay their own increased bills as well as responding to the increased needs of those affected in their communities. Add to this the fact that many are depleted from the experience of Covid which called upon them to use their reserves – both financial and people’s energy. In this time of anxiety and increased need, how should philanthropists and other funders respond?
The simple answer is with generosity. Generosity means a willingness to give help, especially more than is usual or expected. It is not grudging but an open-hearted act to go above and beyond what is needed.
There are many voices urging funders to respond to the current crisis by giving more. Suggestions include doubling whatever grant or donation they had in mind or raising the amounts given by 10% to keep up with inflation and prevent any grant losing its value. In the short-term, it means adding an uplift to any existing grants and in the longer-term, regularly reviewing the size of grant or donation on offer.
However, it is important to remember that these actions have consequences for donors. It is not always an easy decision to give more. Their income source is also likely to have been affected (for example, rising costs and wages in a business or lower returns on investments). Giving more now may not be possible or may reduce the amount they have to give in future. Giving more to one organisation inevitably means helping fewer overall. To manage this, fund-givers will need to say ‘no’ more often or narrow their focus, and this in turn will have a knock-on effect for those seeking funds. This is the very embodiment of the ‘scarcity mindset’ where the funds available are seen as a finite pie – one person having a larger slice means less pie for everyone else. What we really need is a collective generosity - not just philanthropists and funders giving more, but more people giving.
Generosity is not just about money. We also talk of generosity of spirit and heart – how we think about and approach others. Listening and learning can lead to deeper understanding of an issue and so better direct any available funds. Beyond money, there are other things that fund-givers can do to help. Adopting or continuing the practices of streamlining application processes and reducing reporting requirements ease the burden on stretched charity professionals. Providing unrestricted funds for as long as possible will help reduce worry and provide the flexibility for charities to allocate funds as needed in a changing situation. Working collaboratively can amplify resources and make it easier for charities to access funds from one source instead of many.
In whatever ways we all can, now is a time for generosity.