The most recent issue of the Chronicle of Philanthropy reports that giving improved in the first quarter of 2010. The strengthening economy has encourage donors, both for causes such as Haitian relief as well as general charitable giving.

The Chronicle reports that giving overall is up 14%. A share of that giving is an increase of 57% in gifts to organizations active in Haiti while other organizations have seen a general increase of 11% over 2009.

Another perspective is looking at the long-term trend. The Chronicle created a scale using unemployment, stock market, and Gross Domestic Product data to track changes in the economy. Using the 3rd quarter of 2008--just before the stock market took the big plunge in October--as the benchmark, the scale records levels by quarter.

A year ago when we were at the depth of the stock market decline the scale was at the 28.9% level. This past quarter the scale rose to 33.2%.

The good news is that is a 15% increase over a year ago. The remaining challenge is that it is only a third of the 3rd quarter 2008 benchmark. 

While there are a lot of reasons to be positive, you still need to focus on the long-term funding picture. I'm reminded of the  Stockdale paradox as told by business author Jim Collins.

Admiral Stockdale was a prisoner of war in North Viet Nam. When asked why some prisoners failed to survive their experience, he noted that there is a very real difference between the faith that you will prevail in the end and optimism that the end is near. He noted that the optimists had the most difficult time. Those who focused on going home by Christmas, then by Easter, then by summer, and each time had to set a new date because they hadn't gone home often failed to survive the rigors of their situation.

There is no doubt that the nonprofit sector, and most nonprofits, will survive. Communities need our services and our work. But we also need to move carefully, realizing that the challenges of these times must be met day to day.