Inflation has been on our minds and in the news a lot this year. Gas and food prices on the rise have made it more difficult for nonprofits to serve community needs as the needs are increasing, meanwhile available resources are also becoming more limited. It’s a double-edged sword.
Wages are on the increase, which is good news. But that also puts nonprofits at a disadvantage, for every dollar allotted for salaries means a dollar less for services rendered. Inflation can be a threat to overall charitable giving as well. While a newsworthy megagift may inspire others to give, large donations such as these account for only about 5% of overall giving.
The result of this can be that nonprofits experience higher expenses while also experiencing smaller donations. Some nonprofits fear they won’t be able to achieve their operational budgets. Our churches, Catholic schools and Catholic organizations are nonprofits and experience the same challenges as other nonprofits do.
All organizations must have overhead. Finding the right balance is key and in our churches and schools our pastors and lay leaders who serve on advisory councils strive to find the right balance to provide for the needs of the parish and/or school community while stewarding their resources. Balanced overhead costs can signify a well-run organization. Organizations that manage their overhead well are ensuring their good services can be sustained.
There has not been a better time to focus and scrutinize your charitable giving. Understand the needs of the nonprofits you are supporting to ensure that your charitable dollars are making an impact. Inquire at the parish or school office about their operational or greatest needs. The Catholic Foundation of Central Florida Donor Services include aligning options for giving with causes you are most passionate about and sharing tax advantageous giving vehicles which maximize your charitable contributions. Contact us at 407-246-4889.