This story first appeared in the Dec. 5 edition of the Kansan.
Twice last month hungry eyes staring back at them were more than volunteers could bear. They simply couldn’t let the kittens they were caring for at Caring Hands Humane society go hungry.
But the shelter was out of food and out of cash.
“We’ve been hit with lower cash donations,” said Director of Marketing Jack Brand.
Cash donations pay the day-to-day operations of the shelter, including utilities, food for the animals and some salaries.
But there are other areas, like the veterinarian salaries and programs like the Spay and Neuter Your Pets vouchers, that are paid from ear-marked endowments.
Endowments
take hit
These endowments have taken a hit as the stock market has fluctuated.
Caring Hands isn’t alone in seeing endowments shrink. While they are not part of the Newton Community Foundation — many other charities are.
Sandra Fruit, director of the Greater Newton Community Foundation, says she has a sad tale to tell.
Volatility in the stock market has resulted in a 30 percent decrease in the value of the foundation’s endowments.
Income from those endowments also has been cut.
The foundation recently sent a letter to the charities who benefit from these endowments telling them it will reduce payouts from its annual 5 percent to 3 percent. The foundation is asking those organizations that can to refrain from taking any payouts at all this year.
“This letter we sent out last week is an extraordinary measure. This is going to be hard on organizations that depend on that money every year,” Fruit said.
Fruit said she does not foresee a significant decrease in giving to the foundation in that many of the endowment gifts are left to the foundation through estates, which are planned out many years in advance.
Fruit said she is hoping the economy will level out in 18 to 24 months, and the foundation will be able to restore funding.
But for now, the foundation, which is fairly small with about $6 million in funds, is one of many across Kansas that has taken a big hit in the stock market.
“When you see 30 to 40 percent of your investments go away, it is going to be felt dramatically in every community,” she said.
The Newton Area Chamber of Commerce has an endowment managed by the foundation and is looking for alternative sources of income to make up for the lost revenue.
Virgil Penner, Chamber CEO, said the organization is offering advertising on its Web site and trying to raise more funds through advertising in its newsletter.
But in addition to endowed funds, Penner said the Chamber is closely watching its membership.
“It all depends on how the economy affects the Chamber membership,” he said. “Some members may feel the pinch and decide they do not need membership.”
Penner said the Chamber will potentially have fewer funds for economic development, including fewer recruiting trips and less money to spend on recruiting retailers to the area.
“It depends on how conservative people get and how layoffs affect us,” he said.
Some charities are already feeling the pinch as consumers tighten their belts in response to the nation’s recession. Cash donations to area charities are taking a hit.
“My bells are way down,” said Marcia Brazil, director of the Salvation Army of Newton. “At Wal-Mart on Saturday, I don’t think we got $400 in 12 hours. That Saturday after Thanksgiving is usually one of the really big days.”
Need up,
services down
For her office, like others, not getting cash donations leads to a reduction in services, and right now, the Salvation Army is also straining under increased demand for services.
Brazil said assistance requests are up by at least 10 percent this year — and there’s no more money to help fulfill those requests.
“We have so many requests, but only so much money to work with,” Brazil said. “To help as many people as we can, we have to limit assistance.”
That’s already started. The Salvation Army no longer pays full prescription costs in its drug assistance program. Instead, the organization will pay up to $50.
“We will have to cut more if we don’t meet our fund-raising goal,” Brazil said.
As one of more than two dozen United Way agencies, Salvation Army is waiting with baited breath to see what happens during the 2008 campaign.
United Way of Harvey County is coming off a record-setting year, and according to new director Lindsey Frazier seems to be holding steady.
“Giving, for us, has been even,” Frazier said. “No real gains — except with AGCO since they went with a national match.”
This week, the campaign is at 72 percent of the $300,000 goal — and about $20,000 behind where the campaign was at the same time last year.
“Residential and individual giving is down this year,” Frazier said. “As a whole, there hasn’t been growth — but the need is significantly greater.”
The need is what worries her most. With most agencies facing the very real specter of state funding cuts — projections show a $144 million shortfall in the state budget that will grow to more than $1 billion next year without changes — agencies are asking for more.
And there are more agencies turning to the United Way.
Hesston Community Child Care Center receives United Way funding to support its sliding scale for parents with limited incomes.
The United Way funds comprise about 1 percent of the child care center’s budget.
Judy Friesen, director of the center, said she is concerned fewer United Way funds may be available this year.
However, unless the center’s funds are cut completely, she said they will attempt to continue to offer scholarships to the children who need them.
The Newton Community Child Care Center, which was connected to the hospital but is now a newly formed non-profit agency, is turning to the United Way for funding for the first time this year.
The center is applying for a grant to be used to offer scholarships to its students, which it currently does not have funds to do.
Heidi Collins, center director, said she thinks there are parents who could use the center’s services if they could access the financial assistance.
The center is not operating at capacity. It has 53 students enrolled and slots for 76. Filling the vacant slots would help the center remain financially viable.
“A lot of families are working to make ends meet,” Collins said. “We want parents to be able to go to work and take care of their children.”
