Elia PowersThe response to December’s Indian Ocean...
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Elia Powers
The response to December’s Indian Ocean tsunami has been
record-breaking, in both fundraising sums and diversity of donors.
Recent totals put America’s charitable aid at around $600 million.
Organizations that focus on international humanitarian missions are
reporting a significant increase in donations.
Why, then, are some executives at local agencies with domestic
agendas bracing for a potential financial setback?
They say it’s a lesson in basic economics.
“Most of us have a limited amount of money to give,” said Dana
Timmermans, executive director of Costa Mesa’s Friends in Service to
Humanity Harbor Area. “Donating to the tsunami is what people should
be doing.”
Still, Timmermans knows the reality. His organization, which
supports the working poor by supplying money for rent, food and child
care, likely will see a drop in donations because local
philanthropists are sending their money overseas.
“We recognize what the fallout will be,” he said. “I anticipate
there will be a problem. We’re probably going to see it by February.”
Most experts agree it’s too early to draw conclusions based on
this year’s first-month totals. December is consistently tops for
donations, and organizations expect a post-holiday slump.
But local directors aren’t dismissing the possibility of a
decrease in support directly related to tsunami-relief contributions.
Jean Wegener, executive director of Orange County’s Serving People in
Need, said some colleagues have “expressed fear” over the possibility
that donations will run dry.
A survey issued by Connecticut-based Prince & Associates shows
there might be reason for concern. The report found that people whose
net worth is between $1 million and $10 million have given an average
of $12,600 to help tsunami victims, and that the majority said they
intend to give less to other causes as a result of their donations.
HISTORTICAL PRECIDENT
That has been a recurring problem for some nonprofits in the wake
of recent disasters.
Wegener, who analyzes grants and donations given to her
organization and observes cyclical trends in nonprofit giving, said
contributions were slow to arrive following the 1994 Northridge
Earthquake. She said whenever a major event dominates news coverage,
it’s natural to see an uneven distribution of donations.
Never was that trend more noticeable, experts say, than in the
fall of 2001.
“There was a noticeable decrease in giving after 9-11, and certain
organizations took a hit,” Timmermans said.
A “Giving USA” annual survey on the state of philanthropy showed
that after an initial post-Sept. 11 spike in giving to social-service
groups, donations fell by more than 11% by the end of 2002.
Families-Costa Mesa executive director Leda Albright said most
nonprofits, including her own, haven’t recovered from the post-Sept.
11 donation slump.
She said some potential contributors have had to reevaluate their
gift giving because of tight economic times. And some government
grants were altered or restructured due to shrinking budgets.
“I’m assuming it’ll be more of the same now [after the tsunami],”
Albright said. “It’s unfortunate, but that’s the way it is.”
MONEY OFF THE TOP
Still, some organization executives and local philanthropists say
when it comes to donation giving, there aren’t always clear winners
and losers.
“After 9-11 we were afraid the money was flowing only to New
York,” said Jean Forbath, who founded the nonprofit Share Our Selves.
“We didn’t see a downturn, and I don’t expect one now.”
Forbath said Newport-Mesa charities have donors who are willing to
keep their commitments to local organizations no matter the
circumstance.
She said that she and her husband donated to the tsunami-relief
efforts without taking money away from local causes.
That’s a model Wegener hopes applies to the majority of Orange
County philanthropists.
“While I have a reason to be cautious, I am optimistic,” Wegener
said. “I’m hoping that [recent events] will remind people of the
suffering that occurs on a daily basis at home and abroad.”
Aviva Goelman, executive director of the Costa Mesa Senior Center,
said she isn’t concerned about losing money from regular supporters.
It’s the less-frequent or impulse donor who she said might refrain
from writing a check to local organizations because of a major
tsunami-relief contribution.
Maria Mendoza, chairperson for the Emergency Food and Shelter
Program in Santa Ana, said there isn’t always an overlap in donor
pools.
She said community contributors aren’t necessarily the same people
who are making overseas donations. So Mendoza doesn’t believe
tsunami-relief aid is taking a significant toll on social-service
organizations.
“It might make a slight dent, from past experiences,” she said.
“But it won’t take the bulk of resources. For small churches and
groups, they will still collect money.”
TAKING THE EXTRA STEP
Tel Phil Enterprises President Jeff Teller recounted what he has
done since helping local nonprofits recover from a post-Sept. 11
slump.
In late fall of 2001, Teller helped organize a one-weekend
fundraiser for the Costa Mesa Senior Center.
Teller’s company supplied the ice cream and labor and allowed the
Senior Center to take home 100% of the net gross from Saturday and
Sunday ice cream sales at Bob’s Old Fashioned Ice Cream store.
“Instead of them calling us for money, we let them help
themselves,” said Teller, whose company operates the Orange County
Market Place at the Fairgrounds in Costa Mesa.
The fundraiser now runs every weekend for a different nonprofit.
Teller said organizations raised a total of about $85,000 last year.
According to local philanthropist Jim de Boom, the tsunami has
inspired another major collection effort. He said religious
organizations, in particular, have raised substantial money for
tsunami survivors. while still staying true to their local
obligations.
At Harbor Christian Church in Newport Beach, members have raised
$2,900, according to volunteer administrator Wayne Searcey.
He said that money is additional, and will not affect the church’s
donations to Friends in Service to Humanity and Costa Mesa’s
Interfaith Shelter.
At Presbyterian Church of Covenant in Costa Mesa, $5,600 and 340
health kits will be sent overseas, according to office administrator
Carol Whitman.
Still, Albright said the real test will come months from now when
tsunami news dissipates.
“Initially, everyone runs out and makes their donation somewhere,”
Albright said. “But when you get away from the incident, it’s
uncertain.”
* ELIA POWERS is the enterprise and general assignment reporter.
He may be reached at (714) 966-4623 or by e-mail at
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