Officially the United States entered a recession in December, 2007. The Federal Reserve estimated that the wealth of American families plunged nearly 18% in 2008, erasing $11 trillion in housing and stock market value and marking the biggest loss in a half century. Losses continued into the first quarter 2009. How long this recession will last is unclear. Signs of a bottom and a recovery have started to emerge but a full recovery will take time. While many economists expect the Gross Domestic Product to begin to recover by the last half of 2009, many predict the recession could last well into 2010. As of early April 2009, more than 5.5 million jobs have been lost. Some predict an unemployment rate of more than 10% (already exceeded in some states) continuing into 2011. Job recovery will likely not start until six months after the economy has hit bottom and is expected to be slow.
Predictions and actual impacts of this economic downturn will continue to evolve. In addition to vanished net worth on paper, unemployment has risen and some companies, non profits and government offices have instituted hiring freezes, furloughs and reduced work hours. A January 2009 survey found that more than a quarter of companies have imposed salary freezes or cuts. Almost everyone has acquaintances and/or family members who are being impacted. Cutbacks and stiff competition for jobs have added to re-employment uncertainty. Some have lost their homes through mortgage defaults, while others are having trouble paying their mortgage or rent.
While the impacts on families and individuals vary, the prevailing economic uncertainties are resulting in a general shift towards frugality and delay of financial commitments. This is impacting consumer spending, tourism, philanthropic giving and volunteerism patterns. While 2008 spending and charitable giving was buffered by earnings and revenues in a relatively strong economy in 2007, that buffer will not exist in 2009.
Along with every institution in America, those working in support of national parks are trying to interpret economic and giving indicators, adapt to current economic realities, assess best strategies and opportunities to stay on target and get through this recession.
This overview offers indicators, trends and strategies for coping with and surviving this recession. The following links summarize current economic trends based on contributions and volunteerism for individuals, corporations and foundations. The survival strategies provide suggestions on how to maximize the longevity of your organization(s) during the current recession.
Individual Contributions and Volunteerism