The economic lethargy currently infecting the stock markets and showing up in layoffs here and there across the country may be starting to show up in charitable giving.
The Southeast Missouri chapter of the American Red Cross is about $47,500 behind in funding this year compared to 2000. Mary Burton, the organization's executive director, says the organization has received about $20,000 less in donations so far this year compared to last year. At the same time, the Red Cross has provided $27,500 more in client services in 2001 compared to this date in 2000.
"This last year has been very difficult for us," Burton says. "People are feeling the effect of the financial crunch. They are not donating like in the past."
Coming to the rescue
An increase in house fires is the primary reason the Red Cross has been coming to the rescue more than usual this year, she says. The Red Cross provides clothing, food, shelter, help with first month's rent and utilities assistance in cases of fire. "Whatever they need specifically," Burton said.
Burton suggests that some people are using inappropriate means to heat their houses to escape paying this winter's much higher natural gas costs. She says those heating sources have caused some of the fires, but acknowledges her information is anecdotal.
A spokesman for the Cape Girardeau Fire Department said no increase in fires due to space heaters or the like has been noted this winter. However, the Southeast Missouri chapter of the Red Cross covers an 18-county area. Recent statistics on house fires throughout the region are not available.
The Red Cross chapter has reserves it can tap when the need exceeds donations, but the dip in donations and the increased costs are concerns because the chapter receives no funding from the national organization.
A staffer who quit recently has not been replaced. The organization is operating at its leanest, Burton says.
Individual donations are responsible for most of the money the Red Cross takes in. These are solicited either through direct mail campaigns or at special events. Last weekend, Army reservists collected $680 for the Red Cross. The organization's budget is $360,000.
"Every dollar counts," Burton says.
The American Red Cross also acts as the liaison between military personnel and their families. Last week, they brought an enlistee in Florida home to see his father, who had been seriously injured in an accident.
The Southeast Missouri chapter of the Red Cross is one of 31 organizations that benefit from the Area Wide United Way. Nancy Jernigan, executive director of the United Way, is unaware of other local organizations that are having funding troubles. She noted, however, that Girl Scout cookie sales are down nationally and that the Salvation Army fell short of its goal at Christmas.
Higher goal
The United Way also didn't make its 2000 goal of $925,000, raising $901,000. But the goal was set higher than ever before, and the $901,000 represented a 10 percent increase. The average increase for United Ways nationally in 2000 was 1 to 4 percent.
At a recent meeting of Missouri United Ways, everyone reported a tough year, Jernigan said. "No one knew exactly what it was. They said it partially was the economy. They also suspected the election year having something to do with it. People were waiting to see what was going to happen."
IF YOU WANT TO DONATE
*Phone the American Red Cross Southeast Missouri Chapter at 335-9472
*Send donations to 2430 Myra, Cape Girardeau, Mo., 63701
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