Philanthropy in the Credit Crunch

Below is an interesting article in the Economist that discusses the decline in charitable giving in the US recently because of the financial crisis. Interestingly enough, I think this relates to the extreme excesses we've seen over the last twenty years due to the advent of leverage. Just as the US economy is over-retailed and over-banked, we're also over-charitied. There are so many charities that currently exist without an efficient business model focused on fundraising for the best causes with the highest returns. As Mr. Das mentioned at our event, All in for a Healthy Cause, we will certainly see a philanthropic Darwinism occur over the next several years. This will happen as asset bubbles in the US deflate and consumers begin to save more. We'll see high quality charities like AIF and the Bill and Melinda Gates Foundation survive but smaller and less efficient organizations will shut down as consumers become more focused on where their charitable dollars go. The real question is, is this a good or bad thing in the long run. I remember while at the Kentucky Derby seeing donation solicitations for a charity for retired thoroughbreds! Really necessary? Thoughts??

http://www.economist.com/business/displayStory.cfm?story_id=12881455