Speaker: Nonprofits face harsh new reality

Paul Light, a professor at the Wagner School of Public Service at New York University, spoke to about 100 members of the nonprofit and business communities at Oasis Inn & Convention Center. Light cited a recent survey that showed 71 percent of people think charities waste “a great deal” or “a fair amount” of donated money.

The lack of trust, Light said, can be traced to several factors – notably the scandals affecting nonprofits and businesses since the Sept. 11 attacks.

“There’s been a series of high-profile scandals in the last five years – the Red Cross after Katrina, for example – and donors demand now that their charities be much more accountable and transparent,” Light said. “They expect them to be able to show that they’re spending money wisely.”

While overall donations this year are up slightly from last year, Light said people are still not giving as much as they could. He estimates that people are reducing their “discretionary” giving – gifts to groups other than religious organizations and alma maters – by as much as 10 percent, “because there’s so much waste among charities.”

See SBJ’s Oct. 30 issue for more on nonprofits, including an update of United Way’s annual campaign.