There were whispers that it might be coming. Financial advisers warned their clients for months to diversify their portfolios. Even daytime television did its part by alerting John and Suzy Q. Public that a reversal of fortune might be nigh. Then, in July 2022, the news arrived that America was not only headed toward a recession but that the recession had arrived early.

By definition, the slow economic growth reported in the first half of this year constitutes a recession. Nonprofits and charities are undoubtedly bracing themselves for what might prove to be a harsh end-of-year giving season following two years of people struggling. After all, the fight for animal rights and rescue initiatives require money, as do homeless outreach and assistance to underserved populations still reeling from unemployment and healthcare-related issues. But will this recession have negative repercussions, or are the pundits simply riling up everyone for nothing?

According to The Conversation, total charitable giving during the Great Recession dropped by 7.2% in 2008. Then, in 2009, it decreased by another 8%. However, the New York Times reports that in 2020, donations in the United States by individuals, corporations, and foundations reached a whopping $471.44 billion, according to a study by Indiana University’s school of philanthropy. That was during the peak of the pandemic when so much financial news led the public to question whether the economy would ever recover.

The United States has been vulnerable to economic downturns throughout its history. In the 1930s, the country was launched into the throes of hardship following the stock market crash of 1929. Other periods of slowdown include the early 1980s and later in the 1990s. However, this recession falls on the heels of two years of pandemic living and, later, fatigue. Organizations that rely on the kindness of strangers have to find inventive ways to engage with their donor base, as the same approach to campaign giving may not incentivize the weary. Furthermore, the nonprofit sector has increased roughly 20% within the last decade, while the for-profit landscape reports a mere 2-3% increase in its growth. That data translates to a lot of do-gooders fighting the good fight but needing money from what is becoming an overpopulated pool.

To avoid future recessions, this country should extricate itself from reliance on “agricultural commodities” such as pigs and wool. Exploiting harmless animals is a volatile and failing component of our nation’s economy. Instead, building infrastructure on emerging technologies like autonomous vehicles, blockchain, and artificial intelligence will strengthen the economy in the long run. It will also allow the creation of exciting new jobs in science, technology, engineering, and math. The proof exists in the daily stock market reports, which have showcased a steep downward spiral in animal agriculture for most of this year. The more steady the economy, the more money in people’s pockets, and the more likely they will turn that disposable income into effective altruism. That knowledge is something everyone can take to the bank.

Sources: The Conversation, New York Times, 501(c) Trust