Charities Struggling to Stay Afloat

The current economic downturn is having a negative impact on nearly everyone, from the hedge fund managers to the assembly line workers, but one of the unnoticed victims of the 2008 recession are charitable organizations.

This year, all across the board, non-profits have seen dramatic increases in the number of people seeking their service; whether that be food, clothing, heating assistance or a place to stay.

“Emergency services will be pounded with requests for assistance on all issues including food, fuel, housing, rental units, medical issues and gasoline on a daily basis,” says Catholic Charities Director John Gillespie.

Charitable organizations are having a tough time keeping up with the increase in requests for services. At the same time people are asking for more help, there is less available funding.

As the prices of energy and food continue to rise along with unemployment, non-profits are experiencing a slowdown in donations. With increased unemployment, state tax revenues are down, forcing local governments to scale back - one of the area’s they are doing so is in aid to charities.

"Our people had the lowest earning power and greatest risk," said JoAnne Page, the president and chief executive of the Fortune Society, which serves adults leaving prison and juveniles in trouble with the law. The organization already faces cutbacks from various sources. "If you ask me about what the future is going to look like in the next couple years, it's going to hurt like hell."

Experts say that during the economic slumps of 1997 and 2001 charitable contributions also took a big hit, but quickly recovered as the economy did.

Source The Washington Post:

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