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The Not-for-Profit Surge
Even in tough times, your favorite charities are doing better than anyone expected.
John W. Kennedy | posted 5/01/2009 10:12AM

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HUMAN TOUCH IN HARD TIMES
In January, Christianity Today conducted a survey of more than 1,800 active Christians to assess the quality of their relationship with leading parachurch charitable organizations. The survey asked how donors might adjust their giving during 2009, a year that has already seen an 8.1 percent national unemployment rate, 1 in 10 home mortgages in default, and global stock-market crashes.
The CT survey unearthed some surprising results. For example, despite the recession, more than one third (34 percent) of committed givers who took the survey expect to donate more money to charities in 2009 than they donated in 2008. Another 44 percent indicated that their giving will remain the same as their 2008 giving.
Sixty percent of survey respondents said Christian missions organizations are by far the largest recipients of their donations. One in three respondents gives to ministries focused on evangelism or hunger. Religious broadcasters receive funds from 26 percent of those polled. One in four supports child sponsorship as well as emergency relief work. (Multiple categories could be chosen.)
This commitment to giving mirrors other reports. The Salvation Army said that its 2008 Red Kettle Campaign raised $130 million, a 10 percent jump in income from 2007. The "cashless Red Kettle," a pilot program using debit and credit cards, is one innovative reason that giving is up, said Army officials. Internet giving increased 28 percent year over year.
But in the first three months of 2009, many charities began significant belt tightening due to drops in regular donations, major gifts, and investment income. New research sponsored by Indiana University found that gifts of $1 million or more plummeted 33 percent during the second half of 2008 compared with 2007. Also, the Evangelical Council for Financial Accountability (ECFA) surveyed its 1,000 member organizations and found that
• 41 percent had frozen or delayed salary increases;
• 38 percent had frozen or reduced hiring; and
• 53 percent had cut travel and conference expenses.
In January, ecfa member organization Prison Fellowship laid off 40 people as part of a 12 percent budget reduction. While no more large staff cuts are anticipated, president Mark Earley says he expects another expenditures decrease in the next fiscal year. In an "urgent prayer and budget request" e-mail appeal in March, Earley told partners that the nonprofit faced a $2.8 million deficit in donations. "We know that if we do not make up this shortfall," Earley wrote, "we will be forced to make even more cuts."
"The positive in this is that it's causing us to be more focused on our mission in a very clear way, and to invest our resources more pointedly in the core aspects of that mission," Earley told CT.
The harsh economy can be especially difficult on ministries to "the least of these," Earley says. "Historically, we have always been an early warning sign for charities situated like us.
"When there are higher prices at the gas pump, when food costs more, and when equity starts shrinking out of homes, folks who support our ministry postpone giving until they have more confidence. Most of our supporters are small donors giving out of their discretionary income."