MoneySaver

Charities suffering in the economic downturn
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27 July 2009

There are more than 35,000 registered charities in Australia, and many more not-for-profit organisations – and most have taken a hit since October last year.

Charities have reported that they are suffering from a slump in donations due to the global financial crisis and the economic downturn. Two-thirds of charities have reported a drop in donations of approximately 10%. Most of this drop is attributable to a decline in corporate support, as the general public continues to make cash donations. “This might indicate that those with jobs are appreciating the pressure being placed on those without weekly incomes,” said Duncan Power, CAF Australia CEO.

Some charities have already cut back their services as a result of the economic downturn. The Starlight Children’s Foundation, which provides activities designed to lift the spirits of seriously ill children, expects its income to fall by $2 million this year and has reduced its services accordingly.

However, one charity that is booming is the Salvation Army. They’ve seen a 20% rise in the number of people shopping at Salvos stores, which has led to a larger surplus for the charity. General manager of Salvos Stores Neville Barrett says people from “more diverse socio-economic backgrounds” are now shopping at the stores, meaning more white-collar customers who are becoming savings-conscious. In addition, environmentally aware consumers are increasing their spend at Salvos. “They understand that by shopping at the Salvos, and by donating to the Salvos, they are avoiding things going to landfill,” Mr Barrett said. “We recycled more than 4,000 tonnes of local goods last year across Salvo stores in the eastern States, and 10,000 tonnes of clothing was recycled nationally.”

If you want to donate to the Salvos, make sure you visit during business hours; otherwise the goods may be stolen or ruined in bad weather. Be sure to donate only those goods that are still fit to be used – if goods are tatty or broken they will only add to the Salvos’ $5 million bill each year to get rid of unsaleable goods.