Even “industry stalwart” Bank of America, poised to become the largest banking organization in the nation after its complete buyout of Merrill Lynch, is facing its own downward trend. On Oct. 6, the bank’s shares plunged 26 percent. The drop in share values accounted for the largest decline the bank has seen since at least 1980, according to The Charlotte Observer.
Needless to say, the loss of any big business in the Carolinas will strike a blow to the state’s economic stability and growth. People would lose jobs, investors could lose money and state and local officials would be left tending to the mess.
Further, Fortune 500 businesses like Wachovia and Bank of America have proved to be long-standing LGBT allies. In 2008, both banks gave generously to the Pride Charlotte festival. Bank of America is one of the Human Rights Campaign’s national corporate sponsors. Wachovia is also a sponsor of the HRC Carolinas Gala.
If the any large Carolina corporation fails, or if they decide to buckle down on their annual philanthropy, the lessened flow of cash to LGBT organizations could put a damper on the community’s activities for a while. A lot of good, non-profit work — activities requiring big financial support — hangs in the balance if either of North Carolina’s big banks go under.
Non-profits not immune
Trisha Lester, vice president of the North Carolina Center for Nonprofits, said the current economy is definitely affecting contribution levels for not-for-profit organizations.
“It is hard to tell at this point what the long-term effect is going to be,” Lester told Q-Notes. “We are hearing from non-profits across North Carolina and people are very nervous and anxious.”
Lester said that during lean economic times, non-profit groups not only suffer financially, but also in their levels of volunteer work from community members. “Gas is very expensive. People are having to make a decision to buy gas and fill up for the week and then ask themselves, ‘Can I afford to go and do this volunteer work?’”
Kay Flaminio, the development director of the statewide LGBT advocacy group Equality North Carolina, said only a few monthly donors have pulled out due to the economic downturn. “For the most part, we’re holding our own compared to several other state equality groups across the country.”
She said other groups are experiencing difficulties simply meeting payroll expenses.
“We depend on our individual donors and try our best to have frequent contact with them, so they understand what we’re trying to achieve,” Flaminio said. “We’re a little nervous about the end of the year, but on the other hand, we’re confident our supporters will continue to stand with us.”
International Books, a Chapel Hill bookstore doubling as a progressive and intensely LGBT-friendly community center, is another non-profit looking at a dwindling revenue source. Co-manager Nick Shepard told Q-Notes that recent concerns over the economy led board members to lower the group’s annual membership rate — one half of the organization’s income. The other half — book, movie and magazine sales — has also declined.
“With Chapel Hill being a college town, our sales are fairly slow over the Summer and then there is a spike in August and September when students come back,” Shepard explained. “This year we had a similar spike, but it fell off a little faster than I expected.”
Shepard knows customers who are also cutting back on how much they spend on non-essential items. He’s concerned personally because he depends on the store’s welfare for his own financial well-being. “I work at a retail business and the majority of our business happens to be those non-essential items people aren’t buying. I am feeling it.”
Optimism remains high
Despite the doom and gloom aired on every network news station and daily newspaper, LGBT community members and business people in the Carolinas keep their hopes up and optimism high. What looks like an impending victory for Sen. Barack Obama (D-IL) and a future boost to national financial stability as a result, doesn’t hurt the LGBT outlook, either.
“One of the best things to happen to this country is if Barack Obama is elected president,” Sullivan said. “I’ll probably be one of those taxpayers hit with higher taxes, but I don’t mind higher taxes. I do mind a country in debt.”
Coone said he feels a lot of skepticism toward both candidates, but yet, “I am hoping for the best.”
And Houchins, in the stereotypical pastoral way, took a decidedly spiritual spin: “My stance is teach people that God is greater than our economics.”
Whatever the outcome of America’s current financial troubles, the common consensus seems to be to look forward to the future. Wise spending choices, coupled with wise and effective government, is about the only hope Americans have for righting the course of a ship that has, at least for now, sailed down a dangerous financial route.
