The Chronicle of Philanthropy reports that charities that provide aid overseas could lose as much as $1-billion in donations per year as a result of the economic collapse.
Samuel A. Worthington, president of InterAction a coalition that represents international organizations, said that private donations to international-aid groups, which now total just shy of $6-billion annually, could drop from 5 to 15 percent annually during the downturn. “And those billions of dollars would translate into significant hardship,” he said.
If the crisis persists beyond the next 16 months, said Charlie MacCormack, president of Save the Children, in Westport, Conn., that could spell disaster for many international charities. “If jobs are still going away, and equity is still going away, and people say I don’t have a lifeline myself any longer, then it will be tough,” he said.
That said, the charity leaders expressed optimism that the long-term outlook for international-development fund raising was bright, as more Americans are showing an interest in the plight of people outside of the
“People are much more aware of how interconnected we are and how our well-being depends on that of others,” said Mr. MacCormack. “The long-term trends are positive for our cause.”