Amid Record Levels of Inflation, Funders Can Do More to Meet Charities’ Needs

As two funder representatives in the nonprofit sector, we have seen the negative impact of high inflation in recent years on the charitable organizations we hold dear. Thankfully, funders are stepping up to help grantees manage rising costs. But more needs to be done—especially as people are getting used to inflation.

In 2021, inflation rate rose above 4 percent for the first time since 1990. In a Gallup poll last fall, nearly one in five respondents said that inflation was the country’s most important problem. Now, only 10 percent of respondents feel that way. Yet, grantee organizations in various issue areas continue to grapple with the negative effects of inflation on their budget. Immersive travel programs, for example, face increased airfare and other travel expenses. Overnight camps face rising tuition costs of 6 to 8 percent. Jewish community centers face increased program and maintenance costs.

At the same time that social service agencies are experiencing increased demands at their food banks and shelters, the cost to provide these services has increased significantly. Inflationary pressures are driving the costs of basic food items up by 14 to 16 percent from last year, according to David G. Greenfield, CEO of Met Council, which runs an emergency kosher food network that feeds more than 325,000 of the neediest New Yorkers.

Rachel Schnoll is CEO of the Jewish Communal Fund. Steven Green is a senior program officer at the Jim Joseph Foundation.

Read the full article in Philanthropy News Digest