The bad economy is no match for a good cause

Charities say donations, especially relatively small ones, are still pouring in despite the recession
 
 
DAWN WALTON AND PAUL WALDIE
From Tuesday's Globe and Mail
February 3, 2009 at 3:33 AM EST

 

CALGARY, TORONTO ? When organizers of the Bill Brooks Prostate Cancer Benefit held an annual gala at a swish boutique hotel in Calgary recently, they fretted that the economic downturn would mean a sparsely filled ballroom and a slide in donations.

Instead, they raised a record $535,000 and boasted a fundraising jump of 34 per cent compared with the year before at the 11-year-old charity, which funnels cash to cancer treatment, education and research. "We were thinking if we did $400,000 it was going to be a good year," event chairman Larry Clausen said.

It's not just a blip for one good cause in energy-rich Alberta, which weathered the early days of the recession better than most regions, but has now been hit hard by slumping oil prices. Across the country, several charities are counting impressive increases in donations and reporting record fundraising drives for 2008. While big gifts have largely dried up because of the falling stock market, many charities say small donations are still pouring in.

"People don't perceive their charity as a luxury commodity, so it's not something they pull back on quickly when they're experiencing other financial kinds of choices," said Nicholas Offord, president of the Offord Group, a Toronto-based charity consulting firm. "I agree the really blockbuster gifts are going to be put on hold until people get a sense of where the future is going, but for the average Canadian who gives money to their favourite charity, I don't see a big change."

An ongoing study of Canadian donor attitudes by Offord Group and Innovative Research found that most Canadians plan to give the same amount or more to charity this year. The percentage of those who said they plan to give less fell to 18 per cent in January, 2009, from 24 per cent in October, 2008, according to the study, which surveyed slightly more than 2,000 people.

"It's a testament to the Canadian spirit and the fact that even though people may be struggling, they will always still take the opportunity to get out and be able to bless the life of someone who may be less fortunate," said Michael Ulrich, a spokesman for the Samaritan's Purse, which saw a jump in donations for its annual appeal dubbed Operation Christmas Child.

The agency sends shoeboxes filled with items such as school supplies, toys and toiletries to needy children in the developing world. About 713,300 shoeboxes were collected across the country, an increase from 2007, when 661,500 were donated.

The Salvation Army's annual Christmas Kettle program defied expectations by raking in a record $16-million, soaring past the 2007 fundraising effort, which raised $14.3-million. "We're just amazed, humbled by the results and obviously encouraged that Canadians are recognizing that there are people out there who need help," said Graham Moore, the organization's territorial secretary for public relations and development.

The outpouring was timely. Salvation Army officials said demand for services was up 10 to 20 per cent across the country over the holiday period, a trend the organization expects will continue as the economic downturn worsens this year.

The organization has pledged not to turn anyone away.

World Vision Canada's revenue climbed 3 per cent to $382-million for the fiscal year ended Oct. 31. About two-thirds of the organization's revenue comes from donations, and giving doesn't appear to have fallen off dramatically so far this year, spokeswoman Sharon Marshall said. "People really feel like the money they give to international development is one of the last things they want to cut from their budget," she said. 

Others note, however, that the news isn't good for all charities. Many have put large fundraising projects on hold, and some, including the United Way of Toronto, failed to meet annual targets. And, like most investors, charitable foundations have suffered losses on their investment portfolios, meaning they will have less money to finance their own operations or support other groups 

 

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