Charities struggle, though some more than others

Unemployment is high, people scared of losing their jobs are more cautious with their money, businesses more focused on the bottom line make charitable giving less of a priority, and state and local governments are so deep in the red that politicians have been forced to make politically unpopular cuts to nonprofits.

“People are being much more frugal with their money,” said Brendan Hurley, a spokesman for Goodwill of Greater Washington.

Ken Forsythe, spokesman for the Salvation Army, said giving was down between 3 to 15 percent this year compared with last, while the organization’s need is “greater than it has been.”

Donations of toys and money have been “a little bit light,” said Master Sergeant Tim Butler, coordinator for the Marine Corps’ Toys for Tots program in the Washington area.

“In past Christmases, I’ve received a lot more public and monetary donations by now, including last year,” he said.

As funds dry up, charities have cut services, slashed salaries and laid off employees.

Hoop Dreams, which provided scholarships and tutoring to D.C. public school students, closed in November. And Women Empowered Against Violence, a local nonprofit that provides services to victims of domestic abuse, teetered on the brink of collapse in the fall before a last-minute fundraising drive raised enough money to keep it open.

But the pain is not being evenly spread, and some local charities are finding ways to keep the money coming in at rates comparable to previous years.

“The reviews are mixed; some of us aren’t doing so poorly,” said George Jones, executive director of Bread for the City, a private nonprofit that provides low-income residents of D.C. with food, clothing, medical care, and legal and social services.

Jones said Bread for the City shrank its operating hours and reduced staff salaries by 10 percent earlier this year in anticipation of a tough year. But through November, the charity has more cash donations than last year and is considering resuming normal hours and returning salaries to their previous levels.

By contrast, Jones said another local charity where he sits on the board, which he declined to name, is deep in the red.

Jones said Bread for the City has continued to draw donors because it provides direct, basic services and because it has existed for more than 30 years.

In better times, philanthropists tried to “spread the wealth” by finding the next best charity. Now, he said, people are more inclined toward the “tried and true.”

Eric Kessler, managing director at Arabella Philanthropic Investment Advisors, agreed with Jones and said his donors were now more interested in funding organizations that have a direct effect on people who most need help.

Kessler added that the recession would lead to fewer nonprofits, but that’s not necessarily a bad thing.

“The reality is, the U.S. economy, even in good years, cannot sustain 1.5 million registered nonprofit organizations,” Kessler said. “There are organizations who I will say, because of their ineffectiveness, because of their inefficiencies won’t necessarily be missed.

“There are also plenty of organizations whose services are absolutely critical who are unfortunate victims of the recession,” Kessler added.

At Columbia Lighthouse for the Blind, a local nonprofit that helps blind and visually impaired individuals, Vice President of Development Kevin Locke said his organization’s 109-year history has helped donors feel confident that their gifts are put to good use.

He said longtime donors were continuing to give, though some, particularly the elderly on fixed incomes, have cut back their normal donation levels.

Violeta Ikonomova contributed to this report.

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