Texas Insider Report: AUSTIN, Texas – The 2nd study in a 1-week period shows fundraising at more than half of charities nationwide is faring poorly. And recent analysis of data from 500 non-profit organizations found that 37% raised less in the first three quarters of 2012 than during the same period of 2011.
Only 28% received only as much as they had last year. Three-quarters of the groups that suffered a drop said fewer people were giving, and those who were contributed smaller sums.
Nonprofits aren’t expecting the year-end holiday giving season to improve the situation much:
- About 65% of charities in the survey predicted that contributions in the last three months of 2012 would be less, or about the same as they were in the last quarter of 2011.
- And of those predicting an increase, most said it would be moderate, with only 2% of charities predicting large gains.
The percentage of charities reporting a decline, according to GuideStar, was the second highest since the survey was started 11 years ago, and surpassed only in 2009 when slightly more than 50% of charities reported a drop in donations.
The share of charities reporting declines fell in both 2010 and 2011 before rising again this year.
While donations to certain types of charities — especially donor-advised funds, which depend largely on wealthy contributors — has finally exceeded pre-recession levels, the two studies released this week suggest that it will be a long time until most nonprofits have recovered from the downturn.
Another pressure nonprofits are facing is a growing need for aid. Nearly two-thirds of charities in the GuideStar survey said that demand for their services has grown this year.
Some 38% reported a modest increase in demand or need, with 26% reporting greatly increased requests for help.