Strong Economy

Good For Non-Profit Groups

(AP) — Nonprofit groups of all sizes have benefited from the strong economy and are cautiously optimistic that this will be another good year for donations.

With the holidays and year-end tax planning just around the corner, this is prime time for fundraising. Many groups collect half or more of their donations during November and December, said Susan Dunn, a senior vice president with the United Way of the Capital Area.

“People have got money to spend,” said Darlene Graham of the East Hartford Junior Women’s Club, which helps out at a local soup kitchen and is putting together food baskets for the poor. “They feel blessed and lucky.”

Nonprofits welcome the gains of the past few years and are hoping for another solid season of giving. But they’re also wary of the future because the increases in charitable donations nationally, while still growing at a rate that outpaces inflation, have started to taper off.

So, even though the United Way raised an all-time high $25.7 million in the Hartford area this year, up from $21 million in 1995, Dunn takes nothing for granted.

“We try never to be lulled into a false sense of security,” she said. “As soon as we finish one campaign, we’re talking about next year.”

Americans donated $190.2 billion to nonprofits last year, up $15.8 billion from 1998, according to the American Association of Fund-Raising Counsel. That’s an increase of eight percent – slightly less than a year earlier.

Analysts expect the rate of growth to decline again this year, with donations topping $200 billion.

So far this year, despite the uncertainty in the financial markets, charitable giving hasn’t dropped off significantly, according to the Bank of New York, which tracks donations nationally.

Many investors have done well in the 10-year bull market and believe sharing their wealth will help them make a difference in the world, said Mark R. Fisher, a Michigan consultant to several nonprofits. Their biggest motivator is belief in a cause, he said.

“At our heart, most people do have a fundamental desire to try to make some sort of difference,” Fisher said. “Most of us want to make a positive contribution.”