Charity in a Recession: Need Outstrips Rising Donations

WASHINGTON — One sign of these recessionary times is this one, reported by the nation’s charitable organizations: Requests for donations of food, clothing and housing have reached a 50-year high.

Many large charities say that donations are up as well--although not nearly enough to offset need. Smaller charitable operations such as soup kitchens and shelters are suffering the most, both from the recession’s drain on donations and reductions in government funds.

The Salvation Army of Southern California is but one example of a large, nonprofit organization in need. It raised $1.3 million last year and expects to do about the same this year, but that money will have to be spread more thinly this time--among 500,000 people, nearly 100,000 more than last year, spokeswoman Beverly A. Ventriss said.

In some parts of Southern California, demand for food and clothing was up 40% from the previous year, she said.

BACKGROUND: In 1990, Americans gave $122 billion to nonprofit organizations, according to statistics from the American Assn. of Fundraising Council. Most of that came from individual contributions.

Foundations gave slightly more than they had in previous years and corporations gave about the same, while total dollar donations from the middle class dropped off, the statistics showed.

As in the past 30 years, those on the lower end of the salary scale gave larger shares of their incomes--an average of 5%--than those earning higher salaries. In actual dollars, the “big money” comes from the very wealthy, said Joanne Hayes, president of the council.

Total donations to charities have risen every year since 1955, even in years of recession. Hayes said she expects to see a 2% to 3% increase nationwide for 1991--half that of 1990.

Requests for assistance as well as the size of donations varied nationwide as cities struggle with the recession.

In Norfolk, Va., for example, the need for food and shelter relief for the homeless will be 40% higher this year, according to the U.S. Conference of Mayors. There, the Salvation Army has met only 60% of its fund-raising goal.

The United Way--which supports emergency food and shelter programs, provides counseling to the unemployed, housing referrals and day care--raised $3.11 billion in 1990 and expects figures for 1991 to show donations up about 2.5%. United Way and many other charities feel their resources will be drained quickly to meet greater need.

The Red Cross, Goodwill Industries of America and Amnesty International also reported slight increases.

Smaller organizations such as soup kitchens are suffering more acutely. Most have seen severe cuts in funds from federal, city and especially state governments. Unlike larger nonprofit groups, they have only a small core of supporters who, in times of recession, cut their donations.

Ray McCann of the Union Rescue Mission in Los Angeles said donations to the mission are down roughly 10%, while need has increased about 18%. Last year, the mission provided more than 1 million meals and 328,000 nights of shelter for homeless men.

Elaine Dalpiaz of the House of Ruth in Washington, D.C., which shelters 200 women and children each night, said donations have fallen 18% below where they should be. The House also lost most of its District of Columbia funds last year due to budget cuts.

“For every family we take in we turn away four,” Dalpiaz said. “The saddest thing I’ve seen this year is that there’s nowhere for us to refer them to.”

OUTLOOK: Despite the demands, the charities remain optimistic.

“People are more compassionate about other people in tough times,” said Ventriss of the Salvation Army of Southern California. The steady flow of donations despite the poor economy did not surprise her, she added.

Said Kenneth L. Albrecht, president of the National Charities Information Bureau: “People know there are people less fortunate than they are. In difficult times they are more acutely aware of (needy people). They see them, read about them, and they dig more deeply.”