Good News on the Economic Front

Recently released national economic indicators from the first quarter of 2021 offer some strong signs of a positive direction for the overall economy in the United States. As a couple of examples: the gross domestic product was up 6.4 percent annualized in the first 90 days, the stock market was up 5 percent in April alone, unemployment is down to 6 percent at the end of March, and consumer confidence is up 2 percent.

At the same time, we still see economic indicators showing certain areas of the country and sectors of the economy that are struggling.  Specifically, service-related jobs, typically found in travel, restaurants/bars, and entertainment have lagged behind greatly, causing further challenges for those who work in these types of companies.  

Believe it or not, these two contra-indicated updates of financial health, in totality and in regionalize/sectors, lead to great opportunities for nonprofits—to find resources and serve those in need. There’s a certain segment of our population that’s doing very well financially. In fact, as discussed multiple times in the podcast “Around with Randall” and in this blog is the idea that during Covid many individuals were able to adjust or change to create economic opportunity. At the same time, there’s no denying there are many people who have been economically hurt by COVID-19—they are struggling with the basics of food, shelter, education, etc.

Nonprofits, and their leaders, need to concentrate on those who have done incredibly well, and specifically talk about the advantages of appreciated assets as gifts (including stock or other transferable negotiable instruments) as a way to increase revenue to serve its mission. And in the same vein, tying nonprofits’ work with those who have been so adversely affected by the pandemic is critical in increasing donors’ connection to making a difference for those who need it the most.