Charity Giving Outpaced by Rising Demands

The recession may have forced many Southern Californians to tighten their belts during the holidays but it has not stifled their generosity, according to leaders of area charities, who report slightly increased contributions over last year.

At the same time, however, social service providers say they are unable to meet the needs of people coming to them for help.

“The number of people who are living under poverty or who are falling into that category is growing faster than the amount of money we can raise,” said Michael Tomasello, director of development for Catholic Charities of Los Angeles Inc., which has boosted its contributions over the last year by between 5% and 10%.

Nationally, a survey by one coalition of philanthropic groups, the Independent Sector, reported that corporate giving has dipped slightly, and household donations are down 20% this year.

But many nonprofit organizations in Los Angeles say they attracted more donors this year because last spring’s riots highlighted the need to contribute to the inner city.

“I’m meeting people who have become more focused on South-Central (Los Angeles) and more generous . . . and that is very, very encouraging,” said Michelle Prichard, executive director of Liberty Hill Foundation, which raised nearly $250,000 this summer for grass-roots community organizations in riot-affected areas.

Food pantries and other emergency social service providers also were flooded with donations immediately after the riots, said Rev. Gene Boutilier of the Los Angeles Emergency Food and Shelter Program, which distributes federal funds to local service providers.

That initial outburst of giving has slowed, though, and federal funding for social services has been slashed at a time when the need remains high, he said.

“The jobs that were lost are, for the most part, still lost,” said Boutilier. “And because Los Angeles has not experienced the economic recovery to the extent that is allegedly happening elsewhere in the country, we are really hurting.

“The generosity by individuals is still there, but the demand is so great,” he said.

The number of families in Los Angeles requesting food and shelter from nonprofit agencies has increased 43% in the last year, according to a survey by the U.S. Conference of Mayors in November. And in the county, 15.5% of the population lives under the federal poverty level--defined as an annual income of $12,674 for a family of four--according to the 1990 census.

The Los Angeles Regional Food Bank, a warehouse that was packed with donated food immediately after the riots, is nearly empty this week, said Executive Director Doris Block.

“We have more donors this year, but less food,” she said, explaining that the contributions tend to be smaller than in the past.

So far this year, the Food Bank has distributed 32 million tons of food--donated by food companies--through almost 700 pantries, up 8 million tons from last year.

Noting that the warehouse is usually well-stocked in December because businesses contribute during the holidays, she said “this is the worst I’ve seen in 10 years.”

“You’ve got to be optimistic when you run a food bank, but it’s hard today to be really optimistic,” Block said.

The Salvation Army, whose red kettles and bell-ringers dot the Christmas-time landscape every year, also finds its fund raising overwhelmed by needy families who have lined up around their buildings for food baskets and toys.

Last year, Los Angeles County residents dropped $1.2 million into Salvation Army kettles and officials said they expect a 10% increase this year.

But several other chapters are running behind, according to Russ Prince, the agency’s regional director of development. In East Los Angeles, for instance, the Salvation Army has raised $18,000 in the kettle drive and is serving 7,000 families this Christmas, said Robin Hu, the chapter’s commanding officer, who said the agency had to turn to its reserve fund. Last year, the chapter raised $25,000 and served 4,800 families.

“The downside is that the need for services has so far outstripped our ability to raise money,” Prince said, noting that the Salvation Army in downtown Los Angeles distributed 3,500 food baskets Tuesday--1,000 more than last year.

In Hollywood, demands on the agency are up by 35%, officials report. And in Santa Monica, some of the bell-ringers are former well-paid salespeople who have been turned to temporary Christmas jobs after being laid off, said Lt. Robert Rudd, commanding officer of that city’s branch of the Salvation Army.

Americans historically do not stop giving in recessionary periods, according to national philanthropy experts. A survey by the American Assn. of Fundraising Council found that between 1980 to 1989, charitable contributions did not decline in recessionary periods, and at times, even outpaced inflation. Last year, Americans gave about 6% more to charities than they had the year before, said Ann Kaplan, the group’s research director.

“People who are affected by a recession tend not to be major donors,” Kaplan said. “(But) there are a lot of people who aren’t affected by a recession, a lot of people who are doing well enough to give large gifts.”

But one of the most prominent local charity organizations has not been so lucky.

The United Way of Greater Los Angeles Inc. has seen its revenues decline steadily over the last three years. It has reduced its donations to service agencies by an average of 40% over the last two years, said Executive Director Herbert Carter. He expects 1992-93 earnings to be down by about 1.5%.

“People who a year ago wouldn’t have thought they would be unemployed, are now unemployed,” said Carter, whose agency had relied heavily on contributions from aerospace and other industries that have moved out of Los Angeles or have been hard hit by the recession.

But at the All Saints Episcopal Church in Pasadena, officials expect church members to donate 16% more in 1992 than last year. Lyla White, director of stewardship at the church, said that although some members have lowered their pledges because of the recession, more people have become active in the church and are giving generously.

“People who have jobs and who have money coming in are inclined to be grateful,” said White. “And generosity, I believe, comes from gratitude.”