Devastating Cuts Are Coming; How Will You React?

Charities need your help.

Author Photo from my walk

While I may not be an expert in charitable organizations or giving strategies, my journey over the last four years has been a genuine trial by fire. My commitment to addressing the problem of food insecurity in my community extends not only to my eyes and heart but also to my mind.

A conference I attended last week highlighted that the work ahead will be even more challenging. Unfortunately, there are no easy answers; the expected changes in government funding will make it increasingly difficult for charities supporting families.

Interestingly, today, instead of taking pictures during my 5-mile walk, I dictated my thoughts. I felt such passion for sharing this story that my ideas poured out in jumbles, fits, and starts. I tend to overanalyze my writing, so dictating was a refreshing change!

The sky caught my attention, drawing my gaze upward in search of faith and direction. I noted the paths between clouds in the photo I took, and it struck me that all trails lead to understanding—today was no exception.

I participated in a seminar this week organized by a metropolitan foundation, thanks to the invitation from the Executive Director of the Food Pantry, where I serve as a volunteer, board member, and development chairperson. The presentation was both enlightening and informative.

The newly published Annual Report on Philanthropy 2024, researched and published by Giving USA with other research partners, contained several key facts. (For more information about this organization, please visit this link for background information and opportunities to buy the full report if desired.)

• This research has been ongoing for over 60 years, yielding a substantial amount of data on economic trends.

• Over sixty percent of all charitable giving in 2024 came from individuals, twenty-seven percent from foundations and bequests, followed by corporate donations and grants at under ten percent.

• The primary recipient categories were faith-based organizations, human services organizations, educational institutions, and foundations.

• Only 10% of all tax units/families in the United States can deduct charitable donations compared with 40% before the changes enacted by the Tax Cuts and Jobs Act of 2017.

• Increased survivability, a positive for families, has delayed the anticipated wealth transfer from primarily donor-advised funds set aside by the baby boom generation, creating funding gaps.

During the Q&A session, the proposed tax cut implications were discussed, including both state and federal aspects. If passed as proposed, they will deal a significant blow to human service organizations. More families and individuals will face severe financial challenges. Coupled with US agriculture cuts, the projected decline in the fresh food supply is already affecting our local community.

I am not interested in debating the politics of these actions, and I admit to a reluctance to engage in extensive research during the midst of state and federal budget votes. However, I can tell you that Medicaid, Medicare, and SNAP cuts alone will send significantly more clients (approximately 25 to 30% more traffic) to Human Service organizations, like our local food pantry. Unfortunately, individual and corporate donors are unlikely to fill the void created by these cuts and the increased need.

So what can we do but look for opportunity? We need to come together, share our ideas, and work towards a common goal.

One suggested solution was efficiency in an organization’s operations. From my perspective, we already operate a lean organization with three part-time paid employees supported by over 160 volunteers.

Another option is to entice young adults to start donating. Statistics indicate that they are not as charitable as previous generations, and this could adversely impact charities as we lose more and more baby boomers like me. This is an opportunity to instill the value of charity in our children, both young and adult. Start teaching them when they’re young and encourage them as they begin their careers to live slightly below their means. This planning will enable them to set aside funds for charity on a consistent basis. Although this may not benefit organizations immediately, it will have a lasting positive impact. We need to focus more on exposing young people to the benefits of charitable giving.

Planned giving, or legacy giving, is the formal plan to contribute a gift to an organization beyond one’s lifetime. We are on the curve with this endeavor, having just started a Legacy program. Now, it will require even more effort to promote it.

Bottom line, I urge everyone to take action, no matter how small: consider donating $10 a month, establishing a family foundation, or setting aside funds for a specific charity with the help of your investment advisor for estate planning purposes. Encourage your children to give separately or through a family foundation.

The situation is critical, and immediate action is necessary.

The willingness to challenge hardships taps the power within human beings to transform even a place of tragedy into a stage for fulfilling one's mission.
― Daisaku Ikeda

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Thanks for spending time with me.