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Throughout the country, fundraisers are expressing concern about how the tragedy of Sept. 11th and the subsequent surge of giving to relief agencies will affect their organizations. While it is too soon to tell what the outcome will be, looking at how events in history have affected American giving trends may offer some clues. The AAFRC Trust for Philanthropy and The Center on Philanthropy at Indiana University recently examined the effect major events of war, terrorism, and political and economic crises have had on giving. Crises and American Giving
What they found is that the total amount of giving in the U.S. has increased every year but one (1987) for the past 40 years—even through years of wars, recessions, and other political and economic crises. For years where specific events occurred, rates of growth in giving were mixed, but for the calendar year after an event, in all but three cases, giving grew at a greater rate than it did during the year of the event. The three exceptions were the years after the Fall of France, President Kennedy's Assassination, and the 1993 World Trade Center Bombing. In the two acts of terrorism examined (the 1993 World Trade Center bombing and the 1995 Oklahoma City bombing), in the year in which the event occurred, the rate of growth in giving increased over the prior year. The rate of growth in giving slowed the year after the World Trade Center bombing but increased in the year after the Oklahoma City bombing. The study also looked at stock market activity following major historical crises. In most cases, the stock market dropped immediately (within 30 days) after an event, with the exception of President Kennedy's assassination, the 1993 World Trade Center bombing, and the Oklahoma City bombing. In all but three cases, within one year of the date of the event, the market had recovered or more than recovered its value. The exceptions were the Fall of France, the Arab Oil Embargo and the Financial Panic of 1987. How Sept. 11th is different There are several things that make the events of Sept. 11 unique, and thus the effect on giving difficult to predict. They are unlike anything that has happened before, and they occurred at a time when the economy was on the brink of a recession, which typically reduces giving. It is difficult to predict how the distribution of giving will change, regardless of how total giving changes—the outpouring of support to relief agencies will undoubtedly play a role in giving to other organizations. No one knows what the future holds, but reviewing this data may offer some hope. "Our findings from this evaluation and other studies show that both the stock market and giving are resilient," said Eugene R. Temple, executive director of the Center on Philanthropy. "While this is a unique situation, in the past Americans have shown a remarkable capacity to recover from adversity, both economically and spiritually, as measured by the stock market and giving." Too soon to tell While it may be too soon to tell what effect recent events will have on giving, it is not too soon to be communicating with fellow AHP members, sharing individual experiences and opinions, discussing the situation and suggesting ways to deal with it. AHP meetings, and the AHP listserv are great ways to begin your discussions. Certainly, AHP will be monitoring the state of health care philanthropy in the weeks and months to come, and as the results become more apparent, we will continue to communicate with you.
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