Logic would say that during an economic downturn, donors should tighten the purse strings and cut back on funding and grants. But some, like a donor for Boston’s Eos Foundation, are participating in “counter-cyclical giving.”
Ken Nickerson, a former hedge fund manager at Morgan Stanley, says that philanthropy – much like many other parts of the financial system – is set up on a basis of trust. When times are tough, it is more important than ever to maintain that trust when it comes to private philanthropy.
“As donors, we may have lowered capacity during a recession, but we can choose to be more generous because this is when [fellow] citizens truly need our help,” Nickerson told the Eos Foundation’s website. “A great philanthropic investor should be a counter-cyclical investor.”
According to the Boston Globe, despite a 30 percent drop in its $50 million endowment, Eos intends on spending an additional $15 million to fight poverty in the Boston area over the next five years. Some of its ability to do this is because of additional funding from the Nickerson family.
The paper reports wife and their son have donated an additional $10 million to offset the foundation’s losses.
Nickerson says the current – and potentially ongoing – downturn in the economy is likely to cause an increase in the basic needs of people and will affect the most vulnerable people the hardest. Because of this, he says now it is more important than ever to give back to the community.
“This is a wakeup call and an opportunity for all of us to think carefully: What does it mean to be generous?” Nickerson told Eos. “If you want to help people in need, now is the time.”
