Metro Atlanta non-profits saw need rise, donations fall in 1Q

By Christopher Quinn

The Atlanta Journal-Constitution

Metro Atlanta nonprofits reported rising need and sinking donations through the first three months of 2009.

Those trends track what is happening nationally as the economy torpedoes giving, while the same economy is pushing more people to reach out to nonprofits for help.

“I have been at it 25 years, and I have never seen anything like it,” said Jim Seiler, the Atlanta area commander for the Salvation Army.

His organization built a new 80-bed shelter for homeless families in downtown Atlanta, but now that the shelter is complete, the Salvation Army does not have the money to staff and operate it.

The Georgia Center for Nonprofits released new figures from its quarterly survey Thursday to a group of local organizational leaders. It began tracking quarterly trends at nonprofits at the end of 2008. The strains that showed up then have exacerbated.

Twenty-five percent of the about 200 nonprofits surveyed said donations have decreased, compared to 19 percent during the last quarter of 2008.

At the same time, 61 percent of those surveyed in early 2009 said demand for services has increased.

Nonprofits in 2009 are dipping more often into reserve funds (nearly 40 percent compared to 32 percent) delaying programs (42 percent compared to 37 percent) and cutting staff (31 percent compared to 27 percent).

There are a few bright spots, said Karen Beavor, the CEO of the Georgia Center for Nonprofits.

The survey shows nine percent of nonprofits said their foundation grants went up in early 2009. Nonprofits are getting more creative and collaborative to fill the gaps.

But it is tough for everyone, and she predicted a tougher second quarter and third quarter before the holiday lift that charities get during November and December.

“Nonprofits understand how to work with less and how to work hard, and they are just doing more of that,” she said.