The economic woes which have cost Turner billions also plague the rest of the charity world, making this holiday season even more important than usual as a time for donors to step up to the collection plate.
"It has been a tough year, said Patrician Nash, Director of Communications for the Independent Sector, a charity watchdog based in Washington, D.C.
A recent study of charitable organizations backs up this sentiment. Last month Guidestar, a research organization that tracks charitable contributions, released a survey of nearly 3,000 nonprofit organizations that found for almost half, 48%, contributions had gone down during the first 10 months of the year, as compared to the same time period last year.
Charities from Salvation Army street-corner kettle collections to New York's City Harvest food program have reported feeling the same crunch. Even the Christmas charity staple Toys for Tots has experienced a downturn in donations this year. Until last week, when it received a major corporate donation, the U.S. Marine Corps program to provide toys for needy children had seen its most difficult fundraising period in recent years. Major William Grein said the foundation, based in Quantico, Virginia, with local centers across the country, was still about $15 million worth of toys behind where it was this time last year.
"It's a mediocre year compared to what we've been used to," said Grein, noting large corporate donations during the economic boom years of the late nineties and 2000. "Many local donation centers aren't doing as well either."
"The economy affects all the funding sources," said Suzanne Coffman, director of communications for Guidestar.
The faltering economy, along with fears for the future tied to the possibility of war, have led many individuals to reconsider how much they give to charity this year.
"A lot of us go into protective mode when things are bad," said Daryll Heald, president of Generous Giving, a Christian ministry that provides advice on charitable giving.
"Individuals are worried about financial security, so they have less to give," agreed Coffman.
But it's not only individual donations that are affected by the economy. The poor performance of the stock market has been most drastic for foundations and corporations, which are responsible for the largest chunk of charitable giving. Many foundations have seen their assets shrink in the past year. "Grant-makers couldn't give as much as they thought they could," said Coffman. "Forty percent said the total amount awarded to organizations this year was less."
Many charities have also seen cuts in government subsidies. Nash said that state and local governments are trying to balance their budgets, and therefore cutting back on some social services. Gifts from corporations are also lagging behind, as companies tighten budgets during the economic downturn.
Additionally, some are still recovering from the affects of September 11. While charities last year did not fare as poorly as some predicted in the aftermath of a huge individual and corporate outpouring to September 11-related charities, some "organizations are just now pulling out of the financial straits they were put in after September 11," said Coffman.
Coffman said charities are hoping "the traditional giving season will help" them recover from the giving shortfall of the previous months of the year.
This uncertainty about the giving season is coming at a time when not just charities, but the people they serve, are seeing an increased need. In November, the unemployment rate climbed to 6%, the highest in eight years.
The need for emergency food and shelter assistance is also rising dramatically, according to a report on the state of hunger and homelessness in major American cities released today. The U.S. Conference of Mayors found that the need for food assistance rose 19 percent during the past year in the 25 cities surveyed, and requests for emergency shelter similarly rose 19 percent in the 18 cities that reported an increase. This was the highest increase in the past ten years.
City governments are finding it harder to support this increased need. Fifty-two percent of the cities said the amount of resources available for emergency food assistance had declined in the past year. At the same time, housing and human services charities are faring among the worst this year. The Guidestar survey found that 52% of these organizations experienced a drop in their contributions during the first 10 months of 2002, as compared to the same time period in 2001.
"I believe the need is significantly up," said Stacy Haskell, communications manager for Mile High United Way, referring to what she has observed in the metro Denver area. But despite increased need in the community, the United Way branch did not increase its financial goal for its annual fundraising campaign, due to the economy. The goal remained at $32.7 million, the same as last year. So far the branch has reached 46% of the goal; campaign season officially ends in June.
In this giving slump, religious groups seem to be faring the best. The Guidestar survey found that 34% of religious organizations surveyed reported that contributions had gone up during the first 10 months of 2002, compared to the same period in 2001,
"People who give to religion are the most generous donors," agreed Nash of Independent Sector. A recent study on faith and philanthropy conducted by Independent Sector and the National Council of Churches found that households that gave to religious organizations were responsible for 87.5 percent of all charitable giving in the U.S.
Despite the year's disappointing start and the increased need, most charities are "guardedly optimistic" about this season, according to Coffman, still hopeful that their intake during end-of-the-year giving will help buffer the drop from the previous months.
The Guidestar survey found that 55 of organizations thought their contributions during November and December would either stay the same or increase as compared to the same months in 2001.
Similarly, a November survey commissioned by Cone, a public relations firm in Boston, found that 91 percent of Americans plan to give money or volunteer their time to charities during the holiday season.
Nash of Independent Sector agreed that holiday giving was likely to help. "People are generous and want to be generous in tough times," she said. "It's a matter of finding the resources."
