Charities hit hard by financial crisis
Charities have become the latest victims in the global financial crisis, with a growing number applying for funding to meet a rising demand for services.
According to Perpetual, Australia’s largest manager of charitable trusts, 942 charities have applied for funding this year, up 26 percent on last year. The applications have totalled $60 million.
With Australians tightening their own belts to survive the financial crisis, donations have dropped off significantly, according to Andrew Thomas, Perpetual general manager of philanthropy.
“There has been much speculation about the impact of the worsening economic climate and the effect this is having on charities, but this information is the first quantitative evidence that charities are starting to feel the pinch,” Mr Thomas said.
The financial pressure on charities is likely to increase as companies continue to cut staff amid expectations that the unemployment rate will skyrocket to 7 percent by 2010.
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