Charity Begins at Home

As a nation we face a great many uncertainties, stemming not only from the recent terrorist attacks on New York and Washington and the anthrax-related deaths and illnesses, but also from the current economic picture—so changed from just 12 months ago.

We watched in horror and disbelief as various electronic media played and replayed the collapse of the World Trade Center towers and the destruction of a portion of the Pentagon. And we opened our hearts and wallets to the people and communities affected by those terrible disasters.

But what about our own communities? Are we taking care of our own as we send our goodwill and financial resources out to those devastated by recent events?

Indications are that charities not related to Sept. 11 are in fact suffering a decline in donations. In an appeal to Senate leaders for support of his charitable giving tax initiatives, President Bush wrote that “donations to organizations not directly involved in disaster relief have declined dramatically. Soup kitchens are low on food. Mentoring programs for needy children are low on dollars.”

According to Business Week Online, many nonprofit organizations will face a 20 to 25 percent drop in income this year, and some will lose more than that. While over $1 billion has been donated to charities related to the Sept. 11 events, the slump in donations to other charitable organizations cannot be attributed solely to the fact that people and corporations are giving their money to disaster relief instead. The sluggish economy is also playing a part, drying up charitable endowments as well as corporate and individual gifts. Cuts in local, state, and federal budgets are not helping the bottom line for charities either.

To make matters worse, in addition to facing lowered income levels, charities, like for-profit concerns, are facing rising insurance costs and shrinking availability of coverages. As we discovered in our investigation of insurance issues affecting nonprofit organizations, while nonprofits seem to be faring no worse in Texas, from an insurance perspective, than commercial entities, they too are facing issues like mold, wind and hail damage that are creating turmoil in the property coverage market. Difficulties in the workers’ compensation arena are also driving up costs.

The looming holiday season brings the opportunity to give thanks for the blessings that we have and to contemplate the many issues with which we are faced. Let’s take the opportunity to celebrate, give thanks and share our bounty with those people and organizations in our communities that need it the most.

But then insurance professionals have always done that.