Charities feel impact of financial downturn in different ways

Written by Writer on Tuesday, November 11th, 2008

Charities feel impact of financial downturn in different ways

By Ali Smith, Channel NewsAsia | Posted: 10 November 2008

SINGAPORE: The impact of the financial crisis has trickled its way down to the charity sector.

Some charity groups are facing challenges as the season of giving draws near, but the recession has also presented opportunities for other charities.

The Sharity Gift Box – one of Singapore’s largest annual charity projects – is gearing up for its 21st year of giving to the needy. The economic downturn is taking its toll – not in the number of volunteers or donation items, but in the amount of funds required to get the project going.

Desmond Koh, executive director, Boys Brigade, said: “We need to raise approximately S$220,000 for our budget and we are currently S$100,000 shy of that mark. It’s becoming a greater challenge trying to get corporations and organisations to support the project.”

The Boys Brigade hopes corporations can donate gifts in kind instead of cash. For example, food items and transport services would come in handy for its 3,500 volunteers who are helping to run the project.

While the global financial crisis is causing corporations to scale back on cash donations this holiday season, there are other charity outfits in Singapore which are feeling a different kind of impact.

Sales have gone up by 15 per cent at The Salvation Army since recession hit home just over a month ago.

Paul Chay, retail manager, The Salvation Army, said: “Here, we are selling value-for-money items. I believe when individuals have less disposable income due to the recession that is ongoing, they will seek out value-for-money items and basically be more prudent.”

The Salvation Army is optimistic that the store’s second-hand sales will continue to climb in the months ahead. It expects more donations to come in from corporations which are shutting down their operations and giving away surplus goods.

Donations from individuals are expected to slow down, but not to an extent that would disrupt the store’s plans to give to the needy during the festive season. - CNA/so