‘The bottom is falling out.” That was what Woodrow Rosenbaum, chief data officer for GivingTuesday, told the Chronicle of Philanthropy recently. Rosenbaum, who is one of the authors of a new report showing that the number of small donors to nonprofits is on a steep and steady decline, says, “That’s an indicator as a sector that we’re not ready for a recession.”
Nonprofits have been sounding the alarm for a while now. Indeed, this is the fifth straight quarter of decline in the number of individuals giving to charity. Generally speaking, charitable giving is correlated with GDP. But this decline started before our current economic troubles. And, with record-high inflation, it will weigh even more heavily on the nonprofit sector.
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