Donation downturn leaves aid groups in trouble
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Wednesday December 23 2009
CASH-strapped charities have been hit by a 'giving crunch' that has led to a massive drop in donations.
Householders have dramatically dropped back on Christmas philanthropic gifts at a time when an increasing number of people are being forced to rely on charities for help.
Some of the most well-known organisations in the country say they are seriously down on projections for the year -- which were already conservative due to the downturn.
Children's charity Barnardos said it would have a shortfall of between 8pc and 12pc, while both Oxfam and Trocaire said they would be about 10pc down this year.
The Government announced funding of €1.85m yesterday for the St Vincent de Paul for 2009 -- an increase of half a million on last year.
However, that amount is viewed as a drop in the ocean as increasing numbers of cash-strapped families approach the SVP for help.
Tough
Ruth Guy from Barnardos said that the last 12 months resulted in a "tough year", although a fundraising event at the start of October helped take them away from a 20pc drop.
"But we are still looking at a shortfall in terms of what is required to keep the organisation going, so it is difficult. 2010 is going to be even tougher," she said.
Peter Anderson from Oxfam said the charity's "unwrapped" presents, where people can buy gifts for the Third World, had been hit by up to 20pc.
Prior to the downturn, Trocaire said they would seek to raise 10pc more every year.
"Last year from the general public we raised €32.6m (to the end of February 2009) and looking at the trend at the minute we expect that this year we will be down to €29m so we expect that we will be 10pc down," deputy director Eamonn Meehan said.
The cutbacks in foreign aid resulted in Trocaire receiving €16m instead of the expected €23m from the State, which would result in programmes in some countries being dropped.
"It has also had an impact on staffing here so between this year and next year, we are probably going to have to cut staffing in the whole organisation by between 50 and 60 people (from 300)," Mr Meehan said.
However, the widespread loss of jobs around the country has resulted in a surge in the number of volunteers.
"We have seen a huge increase in the number of people volunteering this year -- we are up about 40pc in people applying," Ms Guy said.
"They are people who are highly qualified and have been working for five or 10 years and have now lost their jobs," she added.
However, the drop in corporate donations has also seriously affected fundraising, she said.
Junior Minister John Curran said yesterday that the increase in funding to the SVP "demonstrated the Government's on-going commitment to targeting resources to areas of greatest need and reflects on the recent work of the society during the flooding".
- Shane Hickey and Jason O'Brien
Irish Independent
