Economic fears have led to a drop in charitable donations

A leaky roof at a nonprofit child advocacy agency in Edinburg is a harsh reminder of hard economic times.

So is the short supply of food at the Food Bank of the Rio Grande Valley and the depressed bank account balance of Mujeres Unidas, a nonprofit agency that helps victims of domestic abuse and family violence.

As thousands of local residents cope with the real possibility of an economic recession, many charities and social services agencies have reported a dip in donations in recent months.

And a number of groups that rely on charitable giving say the donations are drying up just when people are experiencing the most need.

"Our donations have gone down," said Lupe Silva, board president for CASA of Hidalgo County Inc., a nonprofit that provides court-appointed volunteer advocacy for abused and neglected children.

"It took twice as much effort to get the same donations as last year," she said. "We worked extra hard and we barely made it."

A recent report from the U.S. Bureau of Economic Analysis show U.S. residents are putting more into savings in light of economic troubles.

Other data show prices for staples like food and fuel are skyrocketing. Charity directors fear U.S. residents may be redirecting their discretionary income away from community organizations and into savings accounts.

In Edinburg, CASA netted a little more than $60,000 during its annual fundraising campaign that ended in February. The sum was the same amount the group raised the previous year, but CASA had to put twice as much work into the effort, Silva said.

The group had hoped to raise extra money this year to help pay for a future children's care facility.

When the economy goes sour, charities and community organizations are usually hit the hardest, said Daniel Borchoff, president of the American Institute for Philanthropy in Chicago.

"It affects charities in two ways. There are fewer contributions and there are more demands for services," Borchoff said. "People are falling through the cracks and losing jobs. And with the food and fuel prices, it makes life very hard."

Supplies at Food Bank of the Rio Grande Valley - which serves as many as 140,000 people a year and distributes as much as 21 million pounds of food annually - are at a 15-year low, said Terri Drefke, executive director of the organization. The meager store of supplies is due to a combination of fewer government subsidies, fewer personal donations and food price inflation.

"The dollars we have to purchase food don't go nearly as far," Drefke said.

Estella de Anda, from Mujeres Unidas, started noticing the decrease in donations in December.

Charities typically receive a significant portion of their cash donations in December, when individuals unload cash for tax breaks.
But this December, donations dropped by 10 to 15 percent, de Anda said.

The shelter helps battered women and their children escape domestic abuse. More than 1,000 people went through the McAllen shelter in 2007.

De Anda said cash donations from the community are key to the organization's success. Government grants make up most of the organization's budget, but those funds are restricted to specific programs.

"We may use cash donations for the emergency fund to help a family get on the bus to go elsewhere or to buy food," de Anda said.
Fortunately, the group has seen an increase in non-monetary donations to its thrift store, she said. The extra donations have helped the shelter scrape by with fewer cash contributions.

During the Christmas holiday season, United Way of South Texas recorded a small decrease in its donations, said Thelma Garza, president of the nonprofit agency. Garza said the group was fortunate, considering a major sponsor dropped out of the program.

However, the United Way did record a major drop in contributions for its 12 Days of Christmas project, in which it partners with The Monitor to help Hidalgo and Starr county families who have faced extraordinary struggles throughout the year and are in need of assistance.

"Maybe that was the start of what is happening in our community," Garza said.

For the Salvation Army in McAllen, the biggest difference in costs lately has been fuel and food prices. The Salvation Army operates a thrift store, a homeless shelter and food services.

For the thrift store, the nonprofit organization offers to pick up large items like washing machines and sofas from donors' homes.
"Now that gas prices have gone up, it's put a big strain on us," said Amanda Aravelo, a spokeswoman for the organization.

The number of cash and non-monetary donations has been stable, however.

"Thank goodness we haven't seen a decrease in donations," she said. "But even if they did (decline), we wouldn't turn anyone away."
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Kyle Arnold covers business, the economy and general assignments for The Monitor. You can reach him at (956) 683-4410.