While newspapers are filled with stories of pending economic gloom and doom, the jury seems to still be out on whether the Canadian economy is headed for a recession.  What experts do agree on is that a period of economic slowdown is quickly bearing down on us. As recently as October 23, the Bank of Canada was predicting that Canada would avoid a recession, but would experience a period of “sluggish growth”.

http://www.financialpost.com/news/story.html?id=903450

So what does this mean for charities? Some charitable organizations are reporting that they are already feeling the impact of the economic turmoil:

http://www.theglobeandmail.com/servlet/story/RTGAM.20081103.wlcharity03/BNStory/lifeMain

But the news is not all bad.  For many of us, (charities, businesses and families) the cloud of the recent stock market downturn has a bright, silver lining.

The year 2007 may be remembered in the future, by many, as the year of skyrocketing fuel prices. That is not to say that we will not face the same painful experience in the future, but for now, there is reason to rejoice.

On average, Nova Scotians are now paying 25-40% less for gasoline, diesel, and heating oil, than they were in September. For charitable organizations, the drop in fuel prices may have a significant impact. Charities that rely on the use of motorized transport to carry out their missions (such as FEED Nova Scotia which distributes supplies to 150 member agency food banks across Nova Scotia), or to generate revenue in support of their missions (such as Canadian Diabetes Association’s used clothing collection drives), and those that heat their facilities with oil, can now look forward to reduced operating costs.

The reduced cost of fuel also means cost savings for businesses and families - and for individuals and families that translates into more disposable income.  The rising cost of fuel over the past year has meant that consumers have been paying more for everything – groceries, clothing, and surcharges and tax on transportation and fuel.  More money in the average Canadian’s pocket is great news for charities.

In 2006, Statistics Canada reported the average Canadian donor gave $250 annually to charities. For individuals and families who heat their homes with oil, today’s cost of filling a 900 litre oil tank  is approximately $250 less than it was six weeks ago – representing a year’s worth of charitable giving for the average donor.  With the season of giving right around the corner, reduced operating costs and more disposable income couldn’t have come at a better time.

What should we, as donors and charities, keep in mind over the coming months of uncertainty ahead? According to Imagine Canada’s 2004 Canada Survey of Giving, Volunteering and Participating, Canadian donors with annual household incomes less than $20,000 gave a greater percentage of their household income to charity, than others. Canadians are commendably generous – even those of us with modest means. We give what we can afford (and sometimes even what we cannot), and we often give most generously when times are leanest.

Carolyn Marshall is Research Director with Red Letter Philanthropy Counsel and a member of APRA (Association of Professional Researchers for Advancement).