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posted: Friday, October 03, 2008
WASHINGTON
(CNS) -- Officials at Catholic aid agencies said it is too early to
tell how the shaky economy will affect their donations and investments
and noted they are cautiously preparing for the future.
John F.
Galbraith, president and chief executive officer of the New York-based
Catholic Medical Mission Board, said nonprofit organizations tend to
react more slowly to market punches than other sectors of the economy.
Although
"it is premature to look at our results (of donation revenue) in the
past two months," he told Catholic News Service Sept. 30, the board has
"to be prudent at this point in time."
"The psychology of the
stock market is just as important as the reality of the stock market;
if people think they have less money we have to prepare for it -- that
they will give less money," Galbraith said. "If they are on a fixed
income, they will be much more diligent. We're not going to lose them
(as donors), but they will be more careful of how they allocate that
portion of money they can afford to be charitable with."
The
Catholic Medical Mission Board sends medical supplies and volunteers to
poor missionary countries. Like many U.S.-based aid agencies, it uses
its donations to fund programs abroad.
CMMB officials "always
project conservatively (and) evaluate on a close basis weekly and
monthly," Galbraith said. The small revenue the agency earns from
dividends will not be included in the next fiscal year budget, which
begins Oct. 1, said Galbraith, adding that any money earned from stocks
will be a bonus.
Just in case of revenue loss, the board will
have "contingency plans as far as programs in the works" and will
"delay future programs if need be," he said.
"When programs are up and running, the last thing you want to do is shut them because of lack of money," he said.
Regardless
of what might happen with the stock market and the economy, the need to
fund programs at home and abroad has not waned.
Patricia
Hvidston, senior director of development for Catholic Charities USA,
said the agency is intensifying its focus to garner donations "because
the need is there and increasing exponentially."
She cited an
increase in need for mental health counseling since the cost of living
has increased. More and more of the working poor need assistance; "they
just can't stretch the dollar far enough," Hvidston told CNS.
Jack
Jackson, senior vice president for finance and administration for
Catholic Charities USA, said Catholic Charities has taken "a
moderate-sized hit" in reaction to the shaky economy and is looking to
reduce expenses and potentially dip into its reserves and move funds.
"We are prepared to ride through the market ups and downs," he said.
Although
investment revenues are down for Catholic Relief Services, the U.S.
bishops' international relief and development agency has seen growth in
donor contributions over the last fiscal year, which ended Sept. 30,
said Michael Wiest, executive vice president of charitable giving for
CRS.
Wiest said he credits people's faith for the continued
donations from both major and direct-mail givers. More than 90 percent
of CRS donors are Catholic, he noted.
"It is part of their faith
identity" to participate in charitable giving, he told CNS Oct. 1. "I
see it as being similar to going to Mass. It is a little less optional
for them" whether or not to give, he said.
Ronald Ferreri,
director of development for Jesuit Refugee Service, expressed
nervousness over the recent tumultuous economic times.
On Sept.
29 the U.S. House of Representatives rejected a financial-bailout plan
to stabilize financial systems. U.S. markets strongly rose Sept. 30 but
not enough for stockholders to forget Sept. 29's record 778-point loss.
"At
this point all bets are off" and there's no telling what will happen
with donations, Ferreri told CNS Sept. 30. "Quite frankly, I am a
little nervous."
Ferreri said he thinks that educational
institutions and churches, which have a long-term commitment from loyal
donors, might fare better than aid agencies like JRS, an international
Catholic organization that serves refugees.
Only since the
December 2004 Asian tsunami has JRS been able to gain a commitment from
donors, he said. Although its revenue from donations has continued to
grow over the past few years, "we are concerned that we (won't) be able
to maintain it," he said.
According to some analysts, when U.S. markets sneeze, the world catches a cold.
Wiest said the drop in the value of the U.S. dollar has dramatically affected CRS programs abroad.
"It
is sad" the money crisis "is happening at a time when the poor are
suffering from a food crisis," he said. Families worldwide are
struggling to feed themselves, he said.
Although strong
donations help make up for the weak dollar's losses, the agency's
"ability to counter that trend has been muted," he said.
Eleonore
Fournier-Tombs, communications officer for Development and Peace in
Canada, said the economic crisis increases Development and Peace's
mandate to help the world's poor. Development and Peace is the
international development organization of the Canadian Catholic Church.
"It will make us work harder" for the poor who will be hit the worst, she said.
END
10/01/2008 11:37 AM ET
Copyright (c) 2008 Catholic News Service/U.S. Conference of Catholic Bishops
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