Outbreak poses challenges for charities worldwide
Virus seen dwarfing other natural disasters
With its global scope and its staying power, the coronavirus outbreak poses unprecedented challenges for charities and nonprofit groups that rely on donations.
The American Red Cross faces a severe blood shortage due to the cancellation of nearly 2,700 blood drives. The Girl Scouts’ annual cookie sale — vital to the group’s finances — has been disrupted by a top-level plea to halt in-person sales.
And a 21-member coalition of major nonprofits is pleading with Congress to allocate $60 billion so charities can keep their staff on the job and ramp up assistance programs.
The CEO of one of those groups, Brian Gallagher of United Way Worldwide, has worked with the charity since 1981, engaging in its response to the 9/11 attacks, the Ebola threat, Hurricane Katrina and other disasters.
He said the COVID-19 outbreak has no parallel: “It’s as if a natural disaster is hitting in slow motion just about every country on Earth.”
Already, foundations and other major donors have contributed more than $1.9 billion to combat the outbreak, according to Candid, a New York nonprofit that tracks philanthropic giving.
The overall total, including donations from individuals, is surely far higher. Yet nonprofit leaders fear that the needs arising from the outbreak will outstrip even the possibility of massive future giving, let alone a possible drop in giving if a recession takes hold.
“Even if we get this virus under control, there will be several months of recovery for many people,” said Patricia McIlreavy, president of the Center for Disaster Philanthropy. “Business will have closed, many families will have exhausted every reserve.”
Among the major charities bracing for future challenges is the Salvation Army, which says it annually receives about $2 billion in public support to serve about 23 million people living in poverty.
“We expect that service number to rise exponentially in the coming months,” requiring “tens, if not hundreds, of millions of dollars to support our most vulnerable neighbors,” said Dale Bannon, the faith-based organization’s community relations and development secretary.”
He said the Salvation Army, like many other charities, has been forced to cancel numerous fundraising events because of the outbreak.
Canceled blood drives have been devastating to the American Red Cross, which provides about 40% of the nation’s blood supply. In a statement Wednesday, the organization estimated that there have been 86,000 fewer blood donations in recent weeks.