Charitable donations dwindle due to coronavirus pandemic

More than 70% of organizations have seen a 'significant' reduction in donations

Americans have scaled back on donating to charities at a time when the organizations are most in need due to the coronavirus-related economic downturn that has left droves of people strapped for cash.

More than 70% of organizations worldwide have reported seeing a "significant" reduction in contributions and as a result, have had to suspended programs involving travel or events, according to a survey conducted by CAF America.

CHARITIES ARE SUFFERING FINANCIALLY DURING CORONAVIRUS CRISIS, DESPITE INCREASED NEED

CAF America polled 880 organizations worldwide from April 30 to May 6 to learn how the pandemic is impacting their work. Nearly all of them, about 94%, said they were being negatively impacted.

According to CAF, a majority of these organizations focus on supporting children and youth, economically disadvantaged populations, people with disabilities, and at-risk populations. Most of them work in education and health care, although "many work across multiple sectors," CAF noted.

As a result of the decreased funds, approximately 40% of the organizations are having a hard time meeting the needs of the population that they serve. However, it's a slight decrease from the 60% of organizations reported earlier this year in a separate CAF survey.

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Roughly 39% of organizations are experiencing staffing disruptions due to illness or remote work, down from almost 50% reported earlier this year.

However, CAF said that "on a more detailed level, the responses reveal dire situations."

Only 12.6% of the respondents say they don't believe the pandemic will impact their organization in the coming year.

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The majority of organizations are concerned about the long-term impact the pandemic will have on donations amid a time when the "need for services is expected to increase."

"Our major concern is what comes after—the echo of the coronavirus pandemic," one organization noted in the survey. "We expect an increase in the need for our support, as the food shortages and economic devastation are likely to gravely affect those we serve."

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