As the year end nears, charitable organizations, such as the Salvation Army and United Way, report donations significantly lower for 2013 over those of 2012. Underlying reasons for the less-than-generous response to charity campaigns appear to not be limited to economic origins. The very financial flexibility the market embraces to offer consumers more electronic-based vehicles for payment of goods and services also appears to be limiting cash available for contributions. Because the need to provide assistance is so great, businesses and the federal government have initiated incentives to encourage contributions.
The Cambridge United Way projects a $100,000 shortfall for its 2013 fundraising campaign, nearly two times the $55,000 gap to its campaign goal in 2012. The organization recognizes the effects of several consecutive years’ stagnant income levels and the impact on disposable income for the working class in general. Economic downturn and losses in manufacturing jobs negatively impact contributions from workers, and the contributions from employers have been diminished or have ceased due to business closures or reduced operations. Givers in the $80,000+ income levels provide half of all donations.
The Salvation Army also reports the 2013 campaign is $3,000 behind based on its $108,000 total for 2012. Some kettle volunteers note that consumers are sometimes reluctant to contribute small amounts that may not appear significant; however, the organization values the impact smaller dollar donations have to reach its goal.
With over 100 years’ history, the Salvation Army bell-ringers are icons of the season. Shoppers, who increasingly use electronic means or devices to purchase holiday goods and services, favor the ease and flexibility of those payment channels over the inflexibility of an ‘amount certain’ of cash to carry on a shopping venture. Home-based shopping on the Internet prevents shoppers from crossing paths with kettle locations entirely. The Salvation Army counts on the pocket change that shoppers would traditionally surrender to the kettle. According to Salvation Army Thunder Bay executive director Major Rob Kerr, attempts to use debit machines as substitutes for kettles manned by volunteers is cost prohibitive. Smartphone donation channels are also being pursued.
Both the government and private sector have undertaken initiatives to foster charitable giving. The First Time Donor Super Credit offered by the federal government effectively adds 25% to the rates used to calculate a charitable donations tax credit for up to $1,000 of monetary donations. First-time donors are now allowed a 40% federal credit for donations of $200 or less, and a 54% federal credit for the portion of donations of more than $200 but not exceeding $1,000.
Companies, such as Transchem Inc. and Canuck Compounders Inc., will match any new donation amount to United Way Cambridge and North Dumfries up to the established $20,000 match fund.