Igor Makarov explains why a strong economy—one where individuals, institutions, and businesses are financially secure and have resources to give—remains the driving force behind philanthropy.

1. NEEDSMOST
Why a Strong Economy
A PRESENTATION BY IGOR MAKAROV IgorMakarov.org
ISWHATPHILANTHROPY

2. What’s the key to increasing donations to
charity and participation in philanthropy?
Inspiring people surely helps. In Lion and the Mouse, Aesop taught
us, “No act of kindness, no matter how small, is ever wasted.”
That’s incredibly motivating to do good.

3. Yet the fact remains that calling people to
action can’t be the only solution. There are
other factors to consider.
Most importantly, people must actually be able
to donate money and time. A strong economy—
one where individuals, institutions, and
businesses are financially secure and have
resources to give—remains the driving force
behind philanthropy. Here’s why:
IgorMakarov.org

4. Without economic
progress,
philanthropy stalls
Before 2008, the last time charitable
giving in the United States had
declined was 1987, when the stock
market crash wiped out massive
amounts of wealth.
On Black Monday (October 19, 1987),
the Dow Jones industrial average
plunged nearly 23 percent, erasing
roughly $500 billion in investments.
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5. Philanthropy goes as the economy
does. The numbers don’t lie.
Research on charitable giving throughout the globe
confirms this trend plays out worldwide. According to the
Charities Aid Foundation, philanthropy participation levels
worldwide decreased significantly in 2009 for all three
giving behaviors measured: donating money, volunteering
time, and helping a stranger.
In 2010, participation in all three of these behaviors
rebounded strongly across the world, just as the global
economic recovery gained some momentum.
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6. When the economy is doing well and people have more
disposable income, charities receive more donations and
participation. It makes sense.
For instance, Americans gave $390.05 billion to US charities
in 2016, according to Giving USA 2017: The Annual Report
on Philanthropy for the Year 2016. Giving increased in all
nine major categories of recipient organizations. This
aligns with the consistent economic expansion of the
country that started in June 2009 (following the 2008
financial crisis).
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With economic progress,
philanthropy thrives.

7. This explains why philanthropy is increasing in Asia, a region where
economic growth has been impressive across various countries over the
last five decades, with China and India leading the way recently. There
are now more billionaires in Asia than in North America. Many people
who have capitalized greatly from this growth are giving back.
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8. Ensuring philanthropy
thrives consistently
Research from the Stanford Center on
Poverty and Inequality on the impact
of recessions on giving found that
contributions to food banks surged
considerably in 2009, while donations
declined overall. So, in times of
economic distress, people with extra
money do still give generously.
What this proves is the amazing
potential of philanthropy, especially
during booming economic times. By
focusing on building and maintaining
a sustainable economy, people can
secure their financial futures and
great wealth can be continually
created.
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9. We should be reminded of this saying: A rising tide lifts
all boats. When the economic situation continually
improves, philanthropy can accomplish more for
people. We all will benefit.
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10. THANKYOU
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