Nonprofits struggle even as charitable giving soars
The American spirit of generosity this holiday season may be no match for the coronavirus.
Despite record amounts of charitable donations this year, the effects of the pandemic are suffocating nonprofits across the country as organizations face soaring costs and demand for help, yet are largely without their own support systems, including volunteers and in-person fundraising events.
December is typically the most important month for nonprofit revenues, as Christmas and end-of-year tax deductions drive a flood of charitable giving. The holiday campaign season that charities big and small rely on is underway in full force amid a resurging pandemic that has infected more than 16 million people and claimed nearly 298,000 lives in the U.S. alone.
The Salvation Army, already down 18% in funding this year, projects its Red Kettle campaign will net half as much as it did in 2019. That’s a $60 million drop for
the iconic fundraising drive being crippled by the pandemic in numerous ways.
Thousands of kettle locations were eliminated because the businesses that once hosted them have closed and foot traffic has diminished as much of the public opts to stay at home. Its pool of volunteer bell ringers is smaller, as many older helpers — some who dress up as Santa Claus — are unable to participate because they’re at high-risk for COVID-19. There’s even a national coin shortage, in part because pandemic shopping has turned increasingly digital.
The Salvation Army’s thrift stores as a separate funding stream are also projected to take a $150 million hit this year.
The Christian social services charity expects 6.6 million people — a 155% increase over last year — will seek their help between Thanksgiving and Christmas, for food, toys and rent assistance as eviction moratoriums expire.
“The numbers in terms of the people who we are serving are simply off the charts and how we’re going to meet the increased need is causing us to be concerned about the giving levels we’re seeing so far,” said Kenneth Hodder, the U.S. national commander for the Salvation Army.
But multiple studies and surveys say more people than ever are giving and at greater amounts than usual.
The GivingTuesday Data Commons estimates there was a 23% jump in the number of people who participated in the movement to donate on the Tuesday after Thanksgiving in the U.S.
The organization said 16.8 million people across the country gave a collective $2.47 billion on Dec. 1 — a 25% increase in total dollars compared to Giving Tuesday last year. That’s more than what any single U.S. philanthropic foundation gave in 2019, with the exception of the Bill and Melinda Gates Foundation, said Woodrow Rosenbaum, GivingTuesday’s chief data officer.
Fidelity Charitable said it has distributed 32% more grants and seen a 20% increase in people setting up investment accounts for charitable giving this year. But the donor-advised fund operator, which generally caters to a wealthier donor base, also said two-thirds of its surveyed donors decreased or stopped volunteering during the pandemic.
There have been efforts to encourage more giving since the coronavirus took hold of modern life in March.
The IRS is urging the public to utilize a special $300 tax deduction that can be claimed next year for cash donations in 2020 to tax-exempted nonprofits.