Fannie Mae's Decision to End Homeless Walk on National Mall has Local Implications

The Georgetown Ministry Center (GMC) participates in both the 'Help the Homeless Walk' fundraiser on the National Mall and smaller walkathons in the community, both supported by mortgage lender Fannie Mae.

But now, Fannie Mae has decided to call it quits on its annual 'Help the Homeless Walk' that takes place on the National Mall on the Saturday before Thanksgiving. Instead the organization will focus on mini-walks that are community-based. This year's event on Nov. 19 will be the last national walk after 24 years, according to The Huffington Post.

"I liked the big walk. It was fun to go down on the mall and walk down the middle of independence avenue," said Gunther Stern, the executive director for GMC.

According to the Huffington Post:

Last year, 14,000 walkers on the Mall helped raise $6.5 million before expenses for Washington area nonprofits. Included in that figure was $1.5 million brought in by more than 100,000 participants in 715 mini-walks put on by schools, churches and other community groups.

Though Stern enjoyed marching on the Mall, it hasn't always had the kind of draw you might expect, he said.

"I have never been able to mobilize many people to go to the Mall and prefer the mini-walks and the public school walks," he explained.

Corinne Russell, a spokeswoman for the Federal Housing Finance Agency, Fannie's government regulator, told HuffPost, “The community mini-walks have caught on and are generating more dollars at a lower cost than scheduling an event on the National Mall.”

Lower cost is key for an agency that has been threatened with closure due to its handling of sub-prime mortgages and its role in the subsequent meltdown of the mortgage market.

Stern said, his fundraising efforts might not be too directly impacted by the focus on mini-walks, but it's too soon too tell at this point.

His biggest concern was whether Fannie Mae would still add 20 percent to the sponsorships of corporate entities that raise additional funds for nonprofit partners, like GMC.

When asked, Amy Bonitatibus, a spokesperson for Fannie Mae, said yes, the Sponsor Incentive Award program will continue. "Fannie will still add 20 percent to the sponsorships" she wrote in an email.

"With fundraising, I think we are diverse enough that we will weather but it is hard to know" said Stern.

While GMC might be able to get by, other non-profits could see a greater loss from the large-scale event's cancellation.

According to Huffington Post:

Burton White, a partner at Excella Consulting, an Arlington, Va., company that has sponsored the event for the last three years. Excella plans to sponsor the Mall walk at the $25,000 level this November and White said his IT consulting company will continue to raise funds for its nonprofit partner, Homestretch. But, he added, "I have a feeling many companies will either divert that sponsorship to other events or perhaps they won't be inspired to give."

For GMC, only time will tell.

"I can see where the sponsors might go elsewhere without the big splash on the mall, but then my sponsors are different. People are afraid of change. Who knows, it might be better," said Stern optimistically.