Charities in the US
In the US there are over 1.2 million charities and nonprofits trying to reach their goals this year. Unfortunately, due to the recession many are predicted to fall short. Around 93% of nonprofits anticipate declining charitable donations. According to The Bridgespan Group, a consulting organization for nonprofits, not only is funding from citizens getting smaller, but other forms of funding are being cut drastically.
The Salvation Army suffers
Everyone has seen them on street corners and in front of businesses. The Jolly Santa rings the Salvation Army bell, hoping to get a donation. This year even the famed Salvation Army is planning on a shortfall. Typically, Thanksgiving through to Christmas is the peak time of the year for the charity. Major George Hood, Chief Communications Officer for the Salvation Army, said, “Fundraising is very difficult in this economy, yet we know that there are people suffering in all 50 states.”
Since the recession, spending has declined drastically. A shortage of people traveling the streets to buy, means a shortage of people passing by the red-kettle ringers. Hood added, “That impulsive giving can be jeopardized if there is no foot traffic in malls. We are in a difficult economic spot. We have to be prepared for it. We have to bear in mind that things will eventually turn around, keep on keeping on, and don’t leave the good work undone.”
Service organizations suffer
Another sector braced for a lack of funding is service organizations. The director of a soup kitchen in Philadelphia, Karen Pushaw, said, “More people are seeking services at the same time as fewer people are able to contribute.” Service organizations are expected less funding, along with increased demand for help from those without. A New York City based facility, Nazareth Housing, a homeless shelter with 58 beds, has been completely full since June.
The organization does not expect to meet its budget, but has a “no one turned away” policy that presses them to stay open until there is no room available. Executive Director Michael Callaghan said, “There are a variety of fiscal stresses on nonprofits. Smaller non-profits are failing, or they’re crippled and unable to continue their efforts. We are going to see more people go out of business, which will add to unemployment and leave gaps in services.”
When will charities and service organizations mend?
Industry experts are studying the past, to see what to expect. In the Great Depression it took three to four years for charitable giving to return to normal. Experts have good news though—they say that due to the income level per capita being much higher than in the 40s, recovery could happen much quicker. The recession hampered businesses and organizations drastically, but hope in a recovery is much stronger than it was in previous economic downturns. Most likely, charities and service organizations will mend and see the same numbers they once did when the economic turnaround is complete.
