Donations Dip as County Economy Improves

The California economy is rebounding, Orange County is out of bankruptcy, unemployment is dropping and retail sales during the holidays surged 4% to 6% higher than last year. But not everyone is better off than they were a year ago.

Taking stock of the year’s volume of private donations, officials at many of the county’s charities say giving by individuals dropped substantially in 1996. Some agencies saw donations fall by up to 20%.

“We’re down by about $20,000,” said Jean Wegener of Serving People in Need in Newport Beach, an agency that provides poor people with housing and counseling. “Why? I wish I knew. I’ve been searching my head.

“We have a good corps of volunteers and some very generous donors. But from what I can tell, everyone’s down this year.”

Officials at different agencies offered several theories about why individual giving had fallen. Some say the economy hasn’t really rebounded; others say that to some degree it has, so people believe the poor are now better off.

“I don’t really know why it’s down so much,” said Debbie O’Connor, executive director of FISH of the Harbor. “But in 1995, when the economy was so bad, maybe it was more in the people’s eye. . . . Now they think everything’s much better and people don’t need as much help.”

FISH provides emergency rental assistance, utility payments and food, and the agency has seen a $14,000 drop in donations, particularly from churches and organizations.

One notable exception to the downward trend in giving is the county’s largest charity, United Way. United Way has seen a 4% increase in private donations, bringing it to 75% of its goal of $18.4 million with six weeks left in its current campaign.

United Way officials wonder if the increase--and other agencies’ decreases--means that people are giving as much but just routing donations through an organization or employer.

“We’re very encouraged by what we’re seeing,” said Jeff Urbaniec, community relations and marketing research manager at United Way. “I would say it’s attributed largely to a lot of hard work from one of the most assertive campaign cabinets we’ve had in six years, but also people are feeling more confident.

“Consumer confidence is starting to make a comeback and Orange County residents are starting to shake off that bankruptcy cautiousness and giving to the United Way is a safer way to give. It has a little more accountability,” Urbaniec said.

Many charity directors said the drop-off in giving may indicate that Orange County is still in financial recovery, rather than stinginess on the part of its residents. Also, although private giving was down, many agencies saw an increase in corporate and foundation donations.

“I think people do give, but I think people still are feeling the pinch,” said Wegener of Serving People in Need, or SPIN. “The cost of living is still high here and I don’t know if Orange County has recovered to the extent people say it has.”

Most likely, SPIN will try to save money by relocating from Newport Beach to a less expensive community, Wegener said.

The Salvation Army, too, will examine ways to save money after a dismal year-end campaign.

“Our Christmas appeal push was down in sort of an alarming rate from last year, so we’re going to have to take a hard look at spending programs for this year,” Capt. Lee Lescano said.

The Christmas appeal is the Salvation Army’s major fund-raising drive and typically accounts for 30% of the Salvation Army’s $4.5-million budget, Lescano said.

“Even though our programs are 365 days a year, Christmas is when people think of us,” Lescano said. “So when that’s down it’s significant.”

But the Salvation Army probably was hurt as much by the calendar as it was by the economy, Lescano said. There were five fewer days between Thanksgiving and Christmas in 1996 than there were the year before--five fewer days for bell ringers to call attention to the agency’s signature red kettles.

“I would only say that as the economy begins to turn around--and that’s great--there are still those in our community who are in a fairly desperate situation and the economy turning around isn’t going to help the really needy in Orange County,” Lescano said. “I’d remind the community to continue to care, year-round.”

Giving Matches Goal

Pledges to Orange County’s United Way are estimated to meet the organization’s goal for the current campaign. Here’s the trend, in millions:

*--*

Year Pledges Goal 1985 $17.5 $18.4 1986 16.5 19.0 1987 16.7 17.4 1988 18.6 19.2 1989 20.4 20.5 1990 20.4 22.0 1991 20.3 21.0 1992 18.5 18.5 1993 19.3 18.5 1994 19.5 20.0 1995 18.3 19.7 1996 18.4* 18.4

*--*

* Estimated

Source: United Way of Orange County