Staff Writer
Vikki Adkins calls it the perfect storm.
Rainier Ehrhardt/Staff
Driver Ray Pennington drops off a load of food donations in the warehouse at Golden Harvest Food Bank in Augusta. Food bank officials say donations have not kept up with recent demand.
The economy tightens and so do the pocketbooks of individual donors who provide the lifeblood to many charitable organizations. And given the tough economic conditions, the number of families needing their help is not likely to shrink.
"It's all the elements for things to get tougher," said Ms. Adkins, the director of development for Golden Harvest Food Bank. "It's not just tough for our donors, it's tough for our clients. It's tough for everyone."
Golden Harvest has seen the demand for its food increase more than 5 percent in the past four months, Ms. Adkins said. In the past year, however, donations at food drives that help stock the pantry have decreased more than 30 percent, she said.
Other local charities are feeling similar economic strains but continue to carry out their missions. But the decrease in contributions, combined with higher energy and fuel costs, eventually will force them to make concessions, local charity officials say.
The decrease in individual donations is occurring nationwide, according to a study released in April by the Association of Fundraising Professionals. Between 2006 and 2007, individual giving through direct mail dropped 14 percent. Donations through special events brought in 17 percent fewer donations.
Smaller charities will be most affected by the economy, but it presents a problem for all nonprofit organizations, said Beverly Peltier, the president of the Greater Augusta Chapter of the Association of Fundraising Professionals.
One of those affected has been the Boys and Girls Club of Augusta. Individual ticket sales for the club's biggest fundraising event of the year, the Steak and Burger Dinner, decreased 16 percent from last year, said Kam Kyzer, the organization's executive director. Overall funds, including corporate donations, increased 3.6 percent.
The Boys and Girls Clubs, which provide summer and after-school programs to more than 7,000 children locally, now transport students from nine schools, compared with 21 last year..
"We don't want to have to make staff adjustments, because that changes the quality of programming," Mrs. Kyzer said.
Individual donors make up 15 percent of the funding to the American Red Cross for assisting families who are victims of fires or other emergencies, said Carol Rittenhouse, the interim executive director at the Augusta chapter. Direct mail, one of the main sources of individual donations, dropped 50 percent between 2007 and 2008.
"Those people are spending their once expendable dollars for their own needs," she said. "We're seeing less of those donors, but people are still trying to make something happen."
Higher energy prices have also exacerbated the budget problems of local charities.
Golden Harvest distributes food to 500 agencies in Augusta, Aiken and Liberty, S.C., Ms. Adkins said. The cost of fueling trucks and transporting food has increased 45 percent in the past year.
Habitat for Humanity, which helps build homes for about three low-income families in the Augusta area each year, now faces higher materials costs, said Dennis Hoyt, the executive director of the charity. Oil-based roofing materials such as shingles and felt have become more expensive, he said. The cost to transport building materials from the Southeast also has increased.
"It's costing about 10 percent more to build one house," Mr. Hoyt said. "Donations have been down a bit since last year, so that could have an effect in the future."
Running charities as though they are businesses will be the best way to cope with the economic crunch, Ms. Peltier said. Cutting back on utility costs by running programs fewer days per week and using the lowest bids for organizational needs can help, she said.
"Nonprofits have to make sure they're staying in touch with their donors and letting them know their needs," she said. "I think people will continue to be generous, but there will be changes in what level of support charities will receive."
Reach Stephanie Toone at (706) 823-3215 or stephanie.toone@augustachronicle.com.
NATIONAL TREND
An April survey by the Association of Fundraising Professionals showed a slowing of charitable giving from 2006 to 2007. It found that:
- In 2006, almost a quarter of respondents (23 percent) saw fundraising revenue increase by more than 50 percent. Just 9 percent of charities experienced similar increases in 2007.
- Larger organizations fared much better than smaller ones, with 70 percent of charities with budgets of $5 million or greater raising more money in 2007 than in 2006. Just half of organizations with budgets of $500,000 or less raised more money in 2007 than in 2006.
- When asked to rank the top four fundraising challenges they faced in 2007, participants overwhelmingly chose the economy. Fifty-five percent ranked the economy as one of the top four challenges in 2007, and 30 percent chose it as the most critical issue. No other issue came close, though participants also cited "increasing competition for the charitable dollar" and "staffing issues in the development office" as other key issues.
