The downward-spiraling economy has caused uncertainty regarding jobs out of college and tuition, but some say it will not cast its black shadow on one thing at Penn State: Thon.
The Interfraternity Council/Panhellenic Dance Marathon has not been affected by the economy so far, said Mike Hacke, Thon overall chairman.
"For Thon's donations, we don't have one $1 million dollar gift, we have a million $1 donors," Hacke (senior-philosophy) said. "We're confident that people are going to continue to give their donations."
Considering the current economic situation, everyone is just trying harder to ask more people to donate to Thon, said Annie Keyes, donor relations overall chairwoman.
"We're taking proactive steps to make sure more people know about Thon and pediatric cancer, and asking more people to donate," Keyes (senior-political science and finance) said. "People may not be able to donate as much as last year, but we still want to maintain good relations with the donors so in the future, in an economic upturn, we can see the benefits."
Given that the United States is currently in a recession, incomes are ultimately going to be lower and it's more likely that some people may reduce or entirely eliminate contributions, said David Shapiro, an economics professor.
"People may be concerned because with the decline in the stock market people are likely to be less generous," he said.
However, Shapiro said smaller amounts, like the "dollar donors" Hacke mentioned, are usually donated on an impulse basis and, if reduced at all, would be reduced by a pretty small margin.
Keyes said one of the main reasons Thon isn't affected by the economy is because there are so many people making small donations.
"Small donations are not going to affect people as much because it's such a small amount," she said. "We're not asking for their whole paycheck. And for canning, people aren't going to think twice before they grab the change in their pocket or in their car."
As of now, Thon has not had any major businesses unable to donate because of the economy, Keyes said. Some corporations have pledged as much or more than in years past, she said, adding Johnson & Johnson doubled their donation from last year, giving $10,000 to Thon 2009.
Individual donations make up 75 percent of all that is given to any fundraiser, Mark Wilhelm, professor of economics at Indiana University-Purdue University Indianapolis and director of the Center on Philanthropy Panel Study, wrote in an e-mail.
"Most donated dollars come from households in the top 20 percent of the income distribution," Wilhelm, a former Penn State associate professor of economics, wrote. "These high-income households may cut back a little, but do not stop giving. Obviously, recessions affect high income households less."
Wilhelm added Thon's long history with donors and students plays an important role in giving.
"Thon has a long tradition. People who supported Thon in the past are not likely to stop supporting Thon now," he wrote.
Still, it is unclear whether or not the economy will affect the final total of Thon 2009.
"Show up at Feb. 22 at 4 o'clock and find out," Hacke said. "That's when I'll know. That's when everyone will know."
