October 02, 2008
Wealthy Families Rethink Charitable Giving
The financial crisis is already affecting how some modestly wealthy families approach giving and may jeopardize how much charities can raise in the future, says Richard Marker, a nonprofit consultant, on his Wise Philanthropy blog.
Mr. Marker writes that in recent meetings with families he advises there are more questions about the balance between leaving an inheritance and how much to provide to charity.
“The issue, it seems, has taken on new meaning in the face of an insecure economy. If one’s net worth can drop precipitously overnight, how much is enough to guarantee anything to one’s children? If family health care or education for your grandchildren or subsidies for family gatherings are important, can you chance leaving your money to charitable causes?” he writes.
“Or conversely, if you feel that some of your money must go to make some part of the world a better place, shouldn’t you guarantee that commitment, even at the risk of imposing on your grandchildren to make it on their own?” he continues.
“The discussions are just beginning, but I suspect that the much-ballyhooed transfer of wealth theories, which have informed the philanthropic thinking of many, are in for a serious challenge. Buckle up.”
(Read The Chronicle’s article about how the financial insecurity could hurt nonprofit groups and their workers.)
What do you think? Have you seen signs that the financial problems will hamper giving? How has your nonprofit group been affected by the credit crisis?
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