Stock Market Woes Challenge Charities
Friday March 13, 2009
New information has surfaced to reinforce reports that charities are struggling heavily alongside stock market declines.
Australia's largest manager of charitable trusts, Perpetual, has indicated a significant increase in the number of charities requesting funding. The overall number of charities requesting funding has increased 26 percent to a total of 942, which is up from last years figure of 745.
The size of applications has also increased, and a total of $60 million dollars worth of applications for funding has been received this year - $19 million more than the previous year. Andrew Thomas, general manager of philanthropy at Perpetual, has stated that the increases occurred across all areas of services, including social welfare, health services, education, the arts and medical research.
The data backs up reports that charitable organisation are 'feeling the pinch' from the effect of the global financial crisis and stock market declines. One-off donations are becoming particularly less frequent. "As economies slow, many organisations are finding themselves in a 'donation-demand squeeze', which sees one-off donations declining as people's capacity to give declines," Mr Thomas said.
An increase in demand for services is also apparent from the number of people in need. Financial counselling services are especially in demand, as Mission Australia CEO Toby Hall has stated. "With families on tight budgets, this means many are starting to fall over the edge and we are seeing a strong growth in the level of demand for financial counselling services across the country," Mr Hall said.
Charitable organisations remind people that donations are still required for an important range of community services, and despite the increase in demand and declines in worldwide stock markets, Perpetual has stated the 400-plus charitable trusts would not reduce grants in 2009.
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