With the Coronavirus crisis now officially a pandemic by World Health Organization standards, there is nowhere that will remain unaffected by it. The role of charities and philanthropy is likely to be key, but not without significant challenges.
The nature of the impact of the virus will vary depending on a charity's activities and location, but all will be stretched, in some cases, beyond capacity.
Schools and universities are already suspending operations or moving to online course provision, and canceling some or all of the non-essential events, meetings, and trips that would normally supplement classroom teaching. Likewise, museums and libraries in many places globally have closed their doors, and conferences, theatre, and musical performances canceled, all in a bid to minimize the spread of the virus within communities.
Nonprofits that deliver services to society's more vulnerable members will face additional challenges. They may be called up on to expand their reach and impact at the same time that 'social distancing' and mitigation efforts will make even basic operations difficult. The elderly, those with compromised health, and those in financial need, including the homeless, will be at serious risk in any place affected by COVID-19, and these groups may rely substantially on the support and services of shelters, food banks, and free clinics in the best of times. In places with little or no social welfare safety-net, the need these individuals face will be significant, and their reliance on charities will be unprecedented. In addition, quarantine and social distancing measures will certainly push many low-wage, hourly, and 'gig economy' workers into poverty.
Nonprofits providing service under pay-by-results funding, usually from governments, may find that expected funding does not materialize if they cannot show the promised results due to service suspension or social distancing consequences.
Front line health care providers may be stretched beyond capacity in ways not seen outside of conflict zones (and those providing healthcare in conflict zones will be stretched even further).
All organizations will be navigating staffing challenges during this crisis, including the duty to ensure the welfare and safety of employees and the challenges of shifting to remote or other working arrangements. It is, unfortunately, possible that charities lacking sufficient reserves may need to close down entirely, and may even become insolvent.
There is a tremendous role for philanthropy to play in these uncertain times, including advocacy, sharing accurate information, and of course, funding – funding preparedness, response, and mitigation. A crisis of this magnitude will encompass not only healthcare, but also all manner of need experienced by the most vulnerable, and it is clear generally that marginalized groups are affected disproportionally in natural disasters and conflict.
Rapid response funds have been created by individual philanthropists, foundations, and community foundations. Some funders are allocating additional funding to their existing grantees, acknowledging that more resources will be needed for front-line charities to weather the crisis and help communities rebuild afterwards.
Funders can make all the difference, even far removed from the front-lines:
The pandemic is clearly going to challenge the capacity of individuals and communities. Philanthropy can be a critical element in weathering the crisis, growing resilience, and helping to rebuild.
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