Charities See Reduced Donations

In an obvious consequence of the tough economic times and donors increasing demands that charities prove their effectiveness, charitable giving has declined, as this story from the Sacramento Bee notes.

An excerpt.

“An industry that relies on giving is taking some lumps these days.

“Northern California charitable organizations big and small have seen donations decline as the recession, high unemployment and declining home values erode donors' wealth.

“Competition for the dwindling pool of private donations is also up, since nonprofits that long relied on government funding have been hurt by local and state budget cuts. The affected nonprofits have stepped into an already crowded pool of organizations seeking donations from recession-battered businesses, foundations and consumers.

"It's a very challenging environment at the moment," said Steve Heath, president and CEO of United Way California Capital Region, which kicked off its annual workplace giving campaign this month at the Sacramento Convention Center.

“The United Way campaign is the region's largest, seeking donations from workers at some 700 employers in Sacramento, El Dorado, Placer, Yolo and Amador counties. Scores of nonprofits benefit from the campaign.

“Regional United Way officials hope this year's campaign will turn around a two-year giving slump coinciding with the recession.

“Following a 7.6 percent year-to-year gain to nearly $14.7 million in its 2007-08 campaign, United Way saw contributions dip 2.1 percent – to nearly $14.4 million – in 2008-09, followed by another 8.7 percent drop to $13.1 million in 2009-10.

“Heath said area giving is still impressive, given double-digit unemployment, business failures and thousands of workers whose wages were either cut or frozen.

"The fact that we could do what we did speaks to the willingness of people to give even during tough times," Heath said.”