In this issue we feature Herbert Hoover Boys and Girls Club, one of the many organizations in our community whose primary mission is to help those in need, and by doing so, changing lives, families and communities for the better. Also, every month in NETWORK our Nonprofit Profile highlights the efforts of a nonprofit group with local interest. In this issue we focus on the James S. McDonnell USO.

There is a strong legacy of charitable giving and philanthropy in the St. Louis area in support of worthy programs. The new facility at Herbert Hoover, for instance, was made possible in part by a single $1 million contribution from a prominent local businessperson and his wife. While this was an individual gift, there are many other foundations and groups here that benefit local and regional causes. NETWORK and the Ladue News have a consistent role in highlighting the efforts of charitable organizations and fundraising activities throughout the year in our community.

While it appears that the U.S. economy is finally gaining momentum, the past few years have been difficult ones for groups that rely on donations to fund their programs. A weak economy makes things more difficult on both sides of the charitable equation. In 2001, more than 5,000 manufacturing jobs were lost in Missouri due to mergers and plant closings, and this is only the tip of the iceberg of job loss in our state.According to the Missouri Department of Economic development, the average unemployment rate in the state of Missouri rose from 3.4 percent in 2000 to 5.5 percent in 2002.

When jobs are lost, more families rely on the services that charitable organizations provide.At the same time, when the economy is faltering charitable contributions by individuals and corporations are diminished, sometimes drastically. The 2003 summary of the Chronicle of Philanthropy notes that contributions to the nation’s largest charities dropped in 2002 for the first time in 12 years as a result of continued economic uncertainty among donors and competition among charities for money. Donations dropped 1.2 percent overall in 2002, compared with an average annual gain of 12 percent during the previous five years. In addition, according to The Impact of Personal Economic Concerns on Giving and Volunteering, published by Independent Sector, in 2002 the most generous households (those with incomes more than $75,000) decreased their giving by 33 percent.

Fortunately, the future looks bright.

A recent Institute for Supply Management report indicates a stronger than expected fourth quarter in the United States after a 7.2 percent expansion in manufacturing in the July to September quarter – four straight months of growth. And because the manufacturing sector was at the heart of job loss in the country – totaling 2.5 million jobs nationwide – the new growth has begun to tip the employment scales in the positive direction.

On the individual side, the recent strong performance of the stock market, including the surprising return of tech stocks into positive territory, has led more families to wade into stock investment once again, and contributed to a more positive outlook on personal financial well-being.

When individuals and companies are doing well financially, and, maybe more importantly, when they feel they are doing well, they are more likely to pass on some of that wealth to those less fortunate. Here’s hoping that with a stronger economy comes a stronger commitment to supporting the efforts of charitable organizations, both in St. Louis and nationwide.

Regards,

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