
Layoffs, foreclosures and higher gas and food prices are driving more people to turn to local charities for help.
But as demand for food, temporary shelter and other necessities has soared in recent months - by as much as 100 percent for some agencies - the economic downturn also has curbed giving. Local human service organizations report that donations from individuals and businesses have slowed more dramatically than normal during the historically low summer months.
Add rising fuel prices, and the problem intensifies, increasing nonprofits' operating costs and hindering their ability to recruit volunteers.
In a survey of eight local safety-net organizations, several said the need for financial and in-kind donations is becoming desperate. Without additional support, they say, severe cuts in services are inevitable and likely will begin in August.
Others - while dealing with a flat financial year, a spike in demand and rising costs - are holding their own. But they're banking on a benevolent holiday season to keep up.
Salvation Army
Nonprofits, regardless of whom they help and how much money they take in, are echoing the same story: Demand is reaching unprecedented levels.
The Salvation Army canteen used to provide food for 50 to 60 each night; that number has ballooned to about 130 in the past few months. Attendance at its weekday noon meal for seniors has doubled, from 60 to 120. Requests for fuel, rent and utilities assistance also are pouring in.
And R.J. Montgomery New Hope Center, the city's primary homeless shelter, is housing an average of 150 people per night, up from its normal summer load of 125.
The rise in demand, coupled with a $250,000 shortfall in contributions so far this year, has thrust the Salvation Army into a "critical mode," said Maj. Don Gilger, El Paso County coordinator.
"It's not like everyone's not giving - everyone's cutting a little bit because of the economy, and when you get many people cutting a little, that ends up being a lot of money," he said. "The crunch is happening."
Clients might not have noticed any difference yet. The organization, which supports its $3.5 million annual budget through local donations, is doing everything it can to stretch resources without affecting services, Gilger said.
The staff, though, has taken a direct hit. Four of the organization's 50 employees have been laid off. Others have had their hours reduced or jobs restructured to take on additional work.
Gilger's fear is that caseworkers - the employees who help the homeless get out of the shelter and into other housing - will soon face the ax.
"If we don't raise $50,000 in the next month, we'll have to look at seriously reducing casework stafi at the shelter," he said.
Care and Share Food Bank
Care and Share Food Bank is the regional distribution center for 435 partner agencies, including 80 local food pantries and agencies that receive allotments from food drives.
Its sparse shelves speak louder than words.
"People still have great intentions to give, but they don't have the same kind of resources they had before," said Nicholas Saccaro, president and chief executive.
Demand for food is up 30 percent this year over last, he said, and many of those requesting assistance are working families with kids who are new to the system.
But the organization's warehouse has only 60 percent of the food supply it had last July, and monetary donations were down nearly $37,000 in the first six months of this year.
Saccaro points to higher fuel and food costs for the decline in donations from government commodities programs, food manufacturers and local individuals.
Prices at the pump also have pushed Care and Share's transportation and freight costs up 59 percent in the first six months of this year, compared with last year. Because of rising food, fuel and freight costs, the agency projects a 13 percent increase in operating expenses for this fiscal year, which began July 1, up from a typical 5 percent increase.
Without an outpouring of nonperishable food donations, Care and Share could suspend its giveaways from local food drives (but not government allotments) to local agencies beginning in August and lasting two to three months. The hope is that the holiday season will bring its usual increase in donations.
The food shortage is reaching agencies that get the distributions, said Jennifer Malenky, development and communications director for Ecumenical Social Ministries. Two years ago, ESM received 3,000 pounds a month of food-drive allotments from Care and Share; the current average is 500 pounds a month, she said.
Some clients are starting to feel the effects of competition for assistance and dwindling resources.
Rita Sanchez and her daughters, ages 4 and 5, had been turned away by two other human service agencies before they recently walked into ESM, took a number and waited to see if they could get some food and clothes.
The Christian organization that helped nearly 15,000 low-income, homeless and unemployed people in crisis situations between January and June handed her several bags of groceries prepared by volunteers, but she was directed to another agency for free clothing.
"It's a lot harder to get help now. A lot of the places say they don't have the resources, so you go to the next one. It's been tough," said Sanchez, a hotel front desk clerk who hasn't been able to work because of foot surgery.
Not just a local problem
The situation locally is playing out nationwide, said Ken Berger, president and executive director of Charity Navigator, which independently evaluates charities for efficiency.
"There is less money available, so government entities and foundations are cutting back; at the same time it's harder for the average family to deal with cost-of-living increases," he said.
Charities in Colorado Springs are particularly vulnerable to the slowing economy, Berger said, because they have the lowest median working capital ratio in the nation - only about three months of funds on hand in reserve, on average, to cover expenses in an emergency.
"Colorado Springs has the distinction of being least ready to face these kinds of economic times," Berger said. "The best charities develop a plan for a worst-case scenario and the high likelihood that the economy is going to continue to suffer for quite some time."
Charities are facing that reality and trying to find ways to cope.
The Salvation Army is appealing to past donors for financial contributions and launching a campaign to recruit 3,000 volunteers to ring bells during the Christmas season's red kettle fundraiser. The goal, Gilger said, is to save money by using volunteers instead of paid bell ringers.
Ecumenical Social Ministries is considering collaborating with more churches that also sponsor food pantries to consolidate distribution and reduce duplication of the service, Malenky said.
Silver Key Senior Services' clients have voluntarily decreased the number of recreational trips they take. The organization normally averages 40,000 miles a month in trips, but in June, the number dropped to 35,000 miles, said David Shafier, president and chief executive.
To save on gas, Springs Rescue Mission is asking donors to bring furniture and appliances to the office instead of having them picked up.
All of that won't be enough, however, if donors don't step up.
"In tough times, people tend to give up luxury items, but a gift to charity is not a luxury item, it's a necessity," said Howard Brooks, vice president of community impact for Pikes Peak United Way, which will kick ofi its annual fundraising campaign Aug. 19 with a goal of $6 million.
"It's literally life and death for some people."
Gazette reporter Mark Barna contributed to this report
GIVING TIPS
• Don’t spread the money around. If you really want to have an impact, said Ken Berger, president and executive director of Charity Navigator, a national organization that evaluates nonprofits for efficiency, concentrate your donations on one or two causes.
• Cut out the middle man. Don’t give your money through professional telemarketers, because some of your contribution will be used for the fundraising campaign. To get the best bang for your buck, Berger said, give directly to the organization.
• Specify if there is a particular issue you want to support, so that your dollars will be used exactly as you want.
• Check out Web sites, such as Charity Navigator or GuideStar, to review effectiveness and financial information.
charities
THE SALVATION ARMY
What it does: Local office has been in existence for 117 years and provides food, temporary housing and emergency assistance to the homeless and needy.
The situation: Critical. Demand for free meals has doubled; demand for the homeless shelter is up 20 percent. Donations, meanwhile, are down $250,000 so far this year over last.
CARE AND SHARE FOOD BANK
What it does: Distributes food to 435 agencies throughout southern Colorado, including 80 in the Pikes Peak area.
The situation: Dire. Demand for food is up 30 percent, but giving is down $37,000 in the first six months of this year. Operating costs are up $130,000 because of higher fuel and food costs.
Gas prices have pushed transportation and freight costs up 59 percent, and the agency projects a 13 percent increase in operating expenses for this fiscal year, up from a typical 5 percent increase.
ECUMENICAL SOCIAL MINISTRIES
What it does: Established in 1982 by eight large downtown churches to provide food, medicine, housing, rent and utilities assistance, job placement, educational programs and other emergency services to low-income, homeless and unemployed people and families.
The situation: Sliding. Two years ago, ESM received 3,000 pounds a month of food-drive allotments from Care and Share; the current average is 500 pounds a month.
Revenue was down nearly $194,000 in the first six months of this year over 2007, and the organization saw a 26 percent increase in money it spent on food in the first six months of this year. The client load jumped by about 1,000 through June of this year.
PARTNERS IN HOUSING
What it does: Owns in partnership with Rocky Mountain Community Land Trust 70 transitional housing units and 70 affordable housing units for low-income working families and individuals and provides self-sufficiency programs.
The situation: Concerning. Housing is nearing capacity, although the organization is considering acquiring up to 14 additional units, said Frank Stampf, executive director. Clients served jumped to 151 in the first six months of this year, compared with 109 the first half of last year.
While donations from grants and individuals are up by about $18,500 through June over last year, corporate donations have fallen by about $32,000 and corporate sponsorships have become more difficult to secure.
SILVER KEY SENIOR SERVICES
What it does: Since 1971, has provided transportation, hot meals, food assistance and services for seniors.
The situation: In a bind. Donations were down 7.4 percent in the first six months of this year compared with last year, while food costs for its Meals on Wheels program, which delivers hot meals to seniors’ homes, are up 6.6 percent. The organization’s fuel costs are up 15.7 percent.
CATHOLIC CHARITIES OF COLORADO SPRINGS’ MARIAN HOUSE SOUP KITCHEN
What it does: Provides free daily meals to the homeless and others in need.
The situation: Needing help, but not critical. The number of people served has increased from an average of 400 to 450 a day to 500 in June. Clients are expected to rise to 600 a day in August.
Donations are flat, and the organization is appealing to local churches for donations of money and food.
SPRINGS RESCUE MISSION
What it does: Provides hot meals,substance recovery, educational programs and emergency food, clothing, housewares, furniture and appliances to the homeless and the poor.
The situation: Cutting back. About 400 to 500 families showed up for spring and summer giveaways of household items when only 50 to 100 were expected.
With demand for meals up 25 percent and donations down 10 percent in the first half of the year, the organization is halting half a dozen outreach programs and laying off seasonal, part-time employees hired for the holiday season but who typically stay on staff.
WESTSIDE CARES
What it does: Group of 21 churches supplies food, hot meals, rent and utility support, clothing, school supplies and prescription assistance to low-income households.
The situation: Hanging on. Demand is 10 to 15 percent higher this year over last year, when 14,000 people were served from four food pantries, but food allotments are decreasing. Giving from foundations, trusts and churches is up slightly for the first half of 2008 over 2007, according to Steve Brown, executive director. A food drive is planned for October.