Charitable donations take a hit in lagging US economy
Charities face difficulties in fundraising and grapple with the increased needs of people hit hard by the economic recession. -- PHOTO: AGENCE FRANCE-PRESSE
WASHINGTON - THE economic downturn in the United States is slowing charitable giving, with 2008 set to be the worst fundraising year for charities in a decade, a new survey has revealed.
The Association of Fundraising Professionals survey released Thursday found that 53.3 per cent of charities had raised less funds in the last quarter of 2008 than in the same period last year.
In its 2007 survey, 48.3 per cent of organisations said they raised more money than in 2006 and only 26.3 per cent had gathered fewer donations.
'The survey underscores the extraordinary difficulties that charities face in a fundraising environment that is more challenging than anything we've seen in recent history,' said Ms Paulette Maehara, who heads the association.
'This year, we've seen the numbers flip-flop, with a majority of charities lagging behind in their fundraising when compared to last year. Even those organisations that are raising about the same amount face significant hurdles because of the increased needs of people hit hard by the economic recession.'
According to the study, which was based on 347 responses to an online survey, the last quarter of the year is a critical fundraising period for most charities, who receive a majority of their contributions during that time.
Almost half (48.1 per cent) of charities receive between 31 and 60 per cent of their total annual donations between October and December, the survey found.
Some 17.9 per cent of charities said they receive more than 60 per cent of their annual contributions during that period.
The study said that if the figures hold out, 2008 would be the worst fundraising year for charities in a decade.
But Ms Maehara said: 'We need to be cautious in predicting 2008 overall giving, as last year we saw a strong surge in contributions during the month of December.'
In 2007, charitable giving in the United States was estimated at US$306.39 billion (S$449.2 billion), exceeding US$300 billion for the first time in history, according to the philanthropy study Giving USA 2008. -- AFP
