So here we are, in an economic trough of Grand Canyon proportions.
New graduates are struggling to find any work, let alone entry into their chosen careers. (I know because I talk to them every month as they network to find jobs.) Senior people in the financial services business have been launched into free fall, with no gravitational pull to any particular company or direction to guide their floatation. (I know because I get calls every week from unemployed CFOs and lending executives.)
Companies are struggling to find the capital to bring their products to market because investors who do have cash have been bargain hunting for about two years now. Personal portfolios of the wealthy experienced losses of around a third of their value, and the dividend flow shrank to a trickle. Why, I even overheard a conversation at The Bridges in Rancho Santa Fe a couple of months ago: "You know, Frank, if this gets any worse, I may have to sell one or two of my homes." Now that's tough.
In the midst of such challenge, fear and loss of opportunity, we are doubly hit by the struggle of our nonprofit community. Until you've had to look for help, you don't realize how much of the help you might get comes from the organizations supported by philanthropy. If you're laid off from work, your unemployment runs out, your spouse doesn't work because you can't afford pre-school for your three kids and you don't have family who can help, what do you do? The government agencies that might provide assistance are themselves being downsized due to the massive budget deficits at the state and federal level. If it weren't for organizations like the San Diego Food Bank, Community Housing Works, the Women's Resource Center and countless other nongovernmental agencies, the range of community support for the unemployed, the homeless and the unlucky would be greatly reduced. With the downturn in the economy, many of these entities are not receiving the historical contributions that fueled their services.
To counteract this trend of reduced support, the San Diego Foundation launched a program earlier this year called "Survive and Thrive," which was a series of intensive workshops for leaders of nonprofits to help them lead their organizations through the troubled times, so that they could live to serve another day. Partnering with United Way of San Diego, these workshops helped dozens of non-profits to adjust to the economic challenges they all face. Some of these entities aren't going to survive, of course, but "Survive and Thrive" improved the chances that many more will indeed do so.
You may not have heard of the San Diego Foundation. It's one of the largest community foundations in the country. It acts as a custodian of charitable donors' funds and as an engineer of community programs ranging from health and human services, to the arts, to long-term community planning to educational scholarships and beyond. With about a half-billion dollars in assets, the San Diego Foundation provides $50-60 million in annual community funding for hundreds of programs and for dozens of organizations, fulfilling the philanthropic wishes of its many donors. Through endowment funds, family foundations, charitable grants and programs, the San Diego Foundation realizes the vision of its donors. Even as this economy has diminished the net worth of many of the Foundation's contributors, the enlightened philanthropist knows that maintaining charitable programs is a key to the quality of life in our community.
One of those lifelong givers, Malin Burnham, has said recently, "Generosity is not a onetime act. It is a lifelong commitment to making the world a better place. It means never failing to do your part toward a better tomorrow." Mr. Burnham is an example of someone who made good in life by his own hard work, never forgot where he came from and committed to giving back in many ways. Paul Eichen, entrepreneur and San Diego business leader, says, "Exploring generosity has brought us great joy and deeper understanding of the San Diego community. The whole family has engaged in giving to and supporting our philanthropic passions."
While some people are bemoaning the loss of their third home in Aspen, others are trying to scrape up milk money for tonight's dinner. While some people will have to forego their monthlong cruise along the Rhine, others are bicycling to their second job because they can't afford the gas. And some people are continuing to ensure that our foundations and nonprofit agencies grow, even if it means fewer flights to Europe for a year or two.
Sewitch is CEO of KI Investment Holdings, LLC, conducting an investment experiment in long-term principles. He can be reached at stan@sddt.com.
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