Weak economy batters much needed charities

But at a time when demand for social services is on the rise, many local charity groups are struggling to cope, their budgets eroded by declining donations from the hard-hit business community and individuals. In the second half of the year in particular, an average of 200 regular donors per month have halted their donations either because of unemployment, pay cuts or stock investment losses. “This is a problem we’ve never encountered before. We need to figure out some ways to work it out,” observed Lin Wen-pin, head of the resource development division of the Eden Social Welfare Foundation. The foundation, which serves some 6,000 physically disabled people, counts on donations for one-third of its operating budget. But such donations have decreased by nearly 30 percent so far this year.

World Vision Taiwan, meanwhile, has seen one-third of the group’s sponsors suspend their donations since October, with receipts during the first 11 months of this year down 25 percent from the same period a year earlier. Hank Du, director of the relief organization, said the depth of the global financial storm has made soliciting donations particularly challenging. The results of recent surveys conducted by several online employment brokers suggest that 100,000 Taiwanese businesses are likely to lay off workers at the end of the year, and that 90 percent of salaried workers have suffered investment losses equal to six months’ pay or more.

Meanwhile, 27 percent of workers have had their salaries cut, and 20 percent either are going to be or have been dismissed. “If all these figures are correct, 25 percent to 30 percent of our existing sponsors and donations will be affected,” Du said.

Weng Huei-yuan, director of the social resources department of the Taiwan Fund for Children and Families (TFCF) , said small donations — the group’s main source of income — have decreased by approximately 20 percent since the May 12 Sichuan earthquake in China, which drew an outpouring of donations from Taiwan.

“Our financial aid for disadvantaged students alone requires NT$80 million (US$2.4 million) per year. A decrease of 20 percent means a shortfall of more than NT$10 million, which makes a very big difference, “ Weng said.

Similarly, the Genesis Social Welfare Foundation, which serves patients in a persistent vegetative state, began to suffer a decline in donations in May, and the donations received in June and July dropped by 20 percent from the same months of last year.

The Zenan Homeless Social Welfare Foundation is probably the hardest-hit, having lost 40 percent of its donations so far this year.

To overcome declining revenues, both Genesis and Zenan have been collecting retail receipts — which are used as lottery tickets — as a source of funds, but even these funds are drying up as more social groups compete for the resources.

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