Charities reeling from the recession

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- Charitable organizations have been hit hard by the weak economy.

Donations are way down, even as demand for their services is on the rise, according to a survey from the non-profit research firm GuideStar.

Some 40% of respondents -- including charitable organizations and private foundations - said that contributions declined during the first five months of 2010, compared to the same period the year before, GuideStar said Tuesday.

During the same time period, these organizations said demand for their services surged by 63%.

As a result, 17% of the charities surveyed said they had to cut services, while 11% were forced to lay off employees. Nearly one third of organizations increased their reliance on volunteers, and 17% of them replaced paid staff positions with volunteer spots.

The report surveyed more than 7,000 employees of charitable groups, including 6,434 employees of public charities and 580 from private foundations. Some 8% of respondents said their organizations were in danger of closing.

The bulk of them reported a decline in both the number of individual contributions and the size of donations.

There was one group of charities that bucked the trend: food and nutrition organizations. About 56% of them reported an increase in contributions, while only 24% saw a decline.  To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
Sponsors

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.