It seems inevitable that, over the next few years, charitable organizations will face a drying up of contributions. Multiple factors are colluding towards this outcome:
The downward pressure on the dollar is putting upward pressure on the price of oil, as oil is denominated in US dollars. As the US dollar becomes worth less in the international arena, so the sellers of oil will require a higher dollar price per gallon. Combine this with turmoil in the middle east, the possibility of conflict with Iran, and the onset of peak oil, and you have a recipe for inflated oil prices for years to come. High energy costs must be absorbed by the economy, and ultimately this will put the pinch on people's pocketbooks.
Now, add to this the current subprime / liquidity crisis that makes it virtually impossible for people to refinance their mortgages in order to use their homes as ATMs (lenders just aren't lending like they used to). Then, add the declining real estate market that leaves many recent new homeowners in an upside down state where their mortgage principle is higher than the current value of their home. Add, also, the incredible level of personal credit card debt that is so pervasive throughout the American population. Now you've got some seriously cash-strapped Americans.
Finally, add to this the fact that congress is standing by idly and doing nothing meaningful to tackle the problem of AMT (the Alternative Minimum Tax). Because of this paralysis, AMT is snagging more and more middle class Americans. One of the things that increases the risk of being caught by AMT is a high total of itemized deductions. So, pretty soon it may become commonplace for CPAs and financial advisers to advise their clients to avoid making substantial donations, to make it less likely they'll be caught by AMT.
Put all this together and you've got a recipe for a crisis in charity. Donations will dry up. Public radio stations will suffer, and pledge drives will become desperate and painfully protracted. Before consumers stop spending on themselves they will stop giving to others.
As consumer money dries up, we are going to have to put more and more pressure on our government to give us back our money in the form of services and entitlements. Right now, our government is simply pissing our money away making war and suffering and fomenting hatred towards the US that will last for generations to come. We need to get back our money, in the form of healthcare benefits. We need a new energy infrastructure to replace our decrepit fossil fuel infrastructure. We need our government to pony up and act responsibly when crises like Katrina hit. Our government - the one that takes our money - cannot expect to be bailed out by charities, "faith based initiatives", and volunteerism. We give the government our tax money with the expectation that it will be spent towards the public good, not Military-industrial Complex cronyism.
It's time to flush away all the lousy tax-and-squander-on-war Republicans and elect in their place some tax-and-spend-on-us Democrats. If I'm going to pay taxes, anyway, I'd rather have my money be spent on America's overall infrastructure and wellbeing, rather than unending death and destruction in some foreign land.