Another worry for charities is that a pandemic will put unique strains on the nonprofit sector. Homeless shelters and programs for the elderly and disabled could be especially hard hit, for example. Social services are often provided by low-paid, poorly insured and hourly workers who are vulnerable to the outbreak themselves. Volunteers -- who are often eager to help after natural disasters -- may be harder to come by during an outbreak, Gabriel said.
Donors should “ask the local experts what they need,” Bridgespan’s Powell said, whether “that’s calling a hospital, calling a local community foundation, calling bedrock local institutions. Don’t fly solo.”
The Muncie, Indiana-based Ball Brothers Foundation, with about $200 million in assets funded by the family that made the famous Mason jars, is doing just that. It’s preparing “rapid grants” for extras like medical supplies, cleaning services or child care. “We are keeping an eye on what we view as a very fluid situation,” said foundation Vice President Jenna Wachtmann.
Privileged Position
Rich donors should remember that charities are on the front lines of the coronavirus, facing realities and risks that their funders don’t, said Henry Berman, chief executive officer of Exponent Philanthropy, an association of wealthy families and foundations with small staffs.
“We as funders need to remember we’re in a position of privilege to give away money,” Berman said. Even as markets have dropped, these “paper losses” just bring portfolios back to where they were a year or two ago, he said.
“Let’s keep some perspective here,” Berman said. “There’s still a lot of money available there for philanthropic purposes.”
--With assistance from Sophie Alexander.
This article was provided by Bloomberg News.