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November 28, 2010 in City
Nonprofit donations difficult to predict
Intentions, ability to give are in flux during hard times
When it comes to asking people for money to support their social, cultural and educational missions, nonprofit organizations face mixed signals.
On the one hand, a ranking of the nation’s 400 biggest charities released this fall shows donations dropped by 11 percent in 2009. It was the worst decline in the 20 years since the Chronicle of Philanthropy began keeping a tally. An earlier report by the Giving USA Foundation found overall charitable giving – including giving to private foundations and smaller charities – declined 3.6 percent.
On the other hand, leaders at some Spokane-area nonprofits say giving in 2010 is looking up – or at least steady. Many organizations do most of their fundraising during the holiday season. So, for now, as local Volunteers of America president and CEO Marilee Roloff said, “We’re hoping.”
Amid these signals embarks the Christmas Fund, a campaign by The Spokesman-Review to collect $500,000 to support the Christmas Bureau, a collaboration with Catholic Charities Spokane and the Volunteers of America that distributes toys and grocery vouchers to Spokane-area people in need.
Reports are widespread of discouraging economic news – long-term unemployment is setting records; poverty levels rose in 2009 for the third year in a row, according to census data.
A few recent indicators, however, might put people in a giving mood. The number of people applying for unemployment benefits fell to the lowest level since July 2008 during the week ending Nov. 20, and the stock market responded happily. Inflation is running low, at 0.9 percent in the 12 months ending in October. Consumers boosted their spending 0.4 percent in October.
Citing heavier shopper traffic attracted by early retail sales and promotions, research firm ShopperTrak upgraded its holiday growth forecast to 3.2 percent from the 2.9 percent it originally anticipated.
“If people see shopping go up, then I think confidence will be returning, and along with that confidence comes more giving,” Roloff said.
Another hopeful line of thinking among fundraisers: The prospect of losing one’s own livelihood, or even taking a real hit in the form of job loss or cut wages, sparks potential donors to consider the plight of others.
“People who are donors are realizing, ‘Hey, my job’s not safe. Hey, my 401(k) was reduced this year,’ ” said Rob McCann, executive director of Catholic Charities.
He said that feeling of financial vulnerability gives donors a sense of what it’s like to be a client of the nonprofit, whose 15 programs include two homeless shelters, nutrition and other services for low-income seniors, and refugee and immigrant services.
“They have a very powerful experience themselves with being marginalized,” McCann. “It makes them want to donate more.”
Development and communications director Brian Holloway has witnessed a similar phenomenon at Arc of Spokane, which provides services for people with developmental disabilities.
On average, donors provide about $25,000 of the organization’s $5 million annual budget. Family members of Arc’s clients form the core of its donor base, Holloway said, and it’s a loyal core. Often, he said, “if people have a really deep commitment to an organization, they’ll give even when times are hard.”
Some of Arc’s regular donors have had to pass this year, citing their own financial woes. Giving declines during economic hard times, “but not as much as you might think,” Holloway said. People still give “simply because of their awareness of the plight of people in difficult circumstances.”
At the Spokane Symphony, ticket sales and fees cover 51 percent of this year’s $3.8 million budget (smaller by about $500,000 than 2009’s budget). Most of the rest – 45 percent – comes from donations. An endowment and money raised by a volunteer organization cover the rest.
With the economy in mind, symphony fundraisers set goals level with last year’s. Collecting donations has been easier this year, said development director Heather Beebe-Stevens, but tougher than it was before the recession.
Some donors apologize for giving less. Some, hearing that others are able to give less, step up with larger amounts.
“A lot are saying, ‘Ask me again in a couple months,’ ” when their own finances might have improved, Beebe-Stevens said.
A third of the ticket-sales income is yet to come for the year, from holiday concerts.
“At this point we have big goals,” said Annie Matlow, the symphony’s marketing director. “They are flat from last year, which we believe puts us in an attainable position. But you can’t take anything for granted.”
The economy hasn’t necessarily made fundraising more difficult at Gonzaga University, said development director Dori Sonntag, who added the university is “truly blessed” with a strong donor base of alumni and parents of students. But it’s made her more committed to securing funding in addition to tuition revenue.
“We see and hear students every day whose families are affected by the economy,” Sonntag said. “It makes our job that much more important, when you have families in need and students in need. The situation is very real.”
As for the Christmas Bureau, the VOA’s Roloff said, she and other coordinators don’t know exactly how many recipients to expect – and, therefore, exactly how much it will cost to serve them. Coordinators set the fundraising goal at $500,000, the same as 2009.
But about 4,000 more people showed up at last year’s bureau than organizers expected. This year, Roloff said, the number of people served “could go up 10 percent. There’s no question about that. A lot of people are not working that have not had to ask for help before. They’re just reaching the end of their rope.”
1992 murder trial begins against sex offender 
carnivoraptor on November 28 at 6:28 a.m.
There is now a reliable charitable giving forecasting tool. It is called the Atlas of Giving.
oneanddone on November 28 at 4:15 p.m.
These “non” profits need to publish what they pay their upper echelon managers. Too many, such as Red Cross and United Way pay their execs hundreds of thousands, plus huge perks. The money needs to go to those for who it was intended, not private jets for CEOs. And don’t tell me they need to pay these people that much in order to recruit top execs. The money isn’t given for that reason.
Random_Axis on November 28 at 4:55 p.m.
Exactly. Some of these “non” profits are worse than Big Oil. At least Big Oil is fueling our cars. Red Cross and United Way are ripping off folks under the guise of charity. Big Oil is honest about their theft…
Scoutster on November 28 at 4:59 p.m.
oneanddone…
You can find out how much is paid to the top five staff of any non profit by asking for their federal tax returns. They are require to present them to you.
You can also go to the Foundation Center and request the 990 from any 501(c)3. http://foundationcenter.org/findfunders/990finder/
From my experience, most non-profits pay meager wages to everyone, but the highly paid outliers get the media attention. And, the bigger the organization, the more likely the top echelon is paid very well…
Dazzeetrader11 on November 28 at 5:55 p.m.
1. Charitable giving always falls when taxes go up and investments fall. Thank Obama.
2. ALL 501’s donations and how they spend their monies are available through IRS.
It’s the law….it’s supplied to them by the 501’s or they lose their charters.
Dazzeetrader11 on November 28 at 5:59 p.m.
And you’ll soon see how those officials reward themselves handsomely. The boards usually do too. It’s kind of a racket.
Churches, other 501’s do that routinely. Their charter’s nearly always say they have to spend their monies. What hapens all too often is when the officers donate back to their charity so they can shelter their salary money! I’ve seen some of the wildest “giving”.
misjustice on November 28 at 6:42 p.m.
I just got back from a wonderful charitable hockey game that was played by the Spokane/Kooteney County Sheriff’s Department versus the Spokane City Police Department.
All proceeds raised go to charitable organizations. The last one they played with football & the proceeds went to Make A Wish Foundation.
Fun game guys. Final Score was 11 - 8.
D Statler on November 28 at 7:31 p.m.
Maybe our $3.5 MILLION dollar man at AVISTA will spare an extra clump of coal this christmas!
hawken on November 28 at 7:56 p.m.
Maybe some of our liberal friends should consider opening up their wallets a bit more.
From presidents to peons, conservatives far out give liberals, to charity.
“Of the top 25 states where people give an above-average percentage of their income, all but one (Maryland) were red — conservative — states in the last presidential election.”
http://townhall.com/columnists/JohnStossel/2006/12/06/who_gives_to_charity
Obama
Adjusted Gross Income Charitable Giving Percentage
2001- $272,759 gave: $1,470 Percent gave: .005
2002- $259,394 gave: $1,050 Percent gave: .004
2005- $1,655,160 gave: $77,315 Percent gave: .047
http://www.nationalreview.com/corner/160825/michelle-and-barack-tax-returns/byron-york
Looks like he was preparing to run for President as early as 2005.
Meanwhile, in 1991, 1992 and 1993, George W. Bush had incomes of $179,591,$212,313 and $610,772. His charitable contributions those years were $28,236,$31,914 and $31,292. During his presidency, Bush gave away more than 10 percent of his income each year.
Look carefully at the numbers.
joe doughtnut on November 28 at 9:39 p.m.
Hawken,
Maybe some of our BOTH liberal and conservatives well to do friends should consider opening up their wallets a bit more as in the POOR give a GREATER percentage of their income to charities.
P.S. I know that you’re good at looking info up so I won’t bother with posting the info.
hawken on November 28 at 9:46 p.m.
Joe…. I don’t need to look it up… You are correct.
My problem is that liberals are the self-proclaimed champions of the poor. As long as it’s not their money. Liberal hypocrisy is the indisputable point I make.
ChefGus/ John Olsen on November 29 at 4:15 a.m.
Small local “charities” do not pay large salaries… the program at Shalom for instance has one part time program manager, paid a small hourly wage with no benefits…30 hours a week…. the other 250 people that volunteer time and effort each month only receive “Psychic” income…. and the food we serve comes from a large variety of sources, including local stores and restaurants and individuals as well as Second Harvest. With this small over head, even paying rent at the Central Methodist Church we serve from we managed to serve 35,000 meals last year. j
MatthewRoot on November 29 at 7:05 a.m.
Thanks again for all your good work, ChefGus.
Hawken, I am sure you will call me a liberal, so I am sure that you will match my donations in time and money to local nonprofit causes, including Shalom Ministries and the Spokesman Christmas Fund.
Happy Holidays
MatthewRoot on November 29 at 7:07 a.m.
ps, Daisy, President Obama cut taxes for small businesses and the middle class. It was a $288 billion tax cut, one of the largest in history.
misjustice on November 29 at 7:58 a.m.
Two of my favorite charities/non-profits are Heifer International and The Carter Center. I consider my donations to these and other groups to be a Christmas present to myself.
http://www.heifer.org/#
http://www.cartercenter.org/index.html
And for those with a bent towards entrepreneurial endeavors, KIVA, is a micro lending organization can’t be beat.
http://www.kiva.org/
I would encourage anyone that can to give to a charity or non-profit. There is great need; in our local community as well as our global community. And there are so many great groups doing important work, one can easily find an organization which matches your desire to “do good”.
And don’t feel bad about just writing a check, instead of travelling to Somalia to deworm orphans. One of my favorite professors said, “Do good in the easiest way possible; it frees you up to do more good.”
Happy holidays and happy giving!
; )
MatthewRoot on November 29 at 1:22 p.m.
“If you can’t feed a hundred people, then just feed one.” – Mother Teresa
Scoutster on November 29 at 5:26 p.m.
Thank you for those with an antidote to the cynical posts on this discussion board.
Man, some folks see the bad in everything!
ChefGus/ John Olsen on November 29 at 8:34 p.m.
Dear Chip…. we fed 250 folks a very very hearty chili tonight… in part because of your generous donation… Corn Bread and Pico D Gallo with sour cream ( the real stuff)… pies and cakes and lots of smiles… and grateful thank you’s… life does offer opportunity to respond to the call …. all around us all the time… best j
MatthewRoot on November 30 at 5:15 a.m.
Thanks Gus — more on the way when I get back in town later this week.