Economy no worse for some charities, says report

The economic situation does not appear to be getting worse for some charities in the US, although those that reported a worsening situation in February appear to be suffering more now, according to a survey conducted by GuideStar.

This second of three surveys covered the period from March to May 2009 and results were ‘remarkably similar’ to those from the survey that covered October 2008 to February 2009. However, the authors say that comments from respondents lead them to believe that organisations that reported things were going badly earlier in the year, are seeing the situation get worse still.

More than half of the respondents had seen a decrease in contributions and more than a third of grantmakers gave less in grants over the three-month period. To make ends meet, those who have had to cut budgets are cutting them in service delivery areas and in staff salaries. Eight per cent of respondents said they were in imminent danger of closure.

Sixty nine per cent of organisations said fewer individuals had donated to them and a similar number said that gifts from individuals were smaller.  Private foundation grants had diminished for 37 per cent and corporate gifts were smaller or had stopped altogether for around 60 per cent.

While a very small number saw the demand for their services decrease, nearly60 per cent saw an increased demand to a greater or lesser degree.

On the grantmaker side 20 per cent had cut back on the types of programmes funded and a further nine per cent reduced the amount of money committee. Around 40 per cent saw an increase in the number of funding applications.