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March 23, 2009

Challenges for charities

With the current financial problems in the economy, many charities are having trouble raising funds. But at the same time, these charities frequently see an increase in the use of their services. How can charities reconcile these two sides of their operations? Listen

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Unfortunately, it's going to be very, very difficult. You're absolutely right, charities are really caught between a rock and a hard place as more people are looking for help, yet because the economy is down charities are having trouble raising money. I think what charities have to do is, clearly, do the best they can. I think they have to make an appeal to their donors that, 'Look, this is a tough time. We need money now more than ever.' I think perhaps they need to think outside of the box. Maybe instead of raising money and buying services and products, perhaps barter. Bartering has increased in popularity during the recession, so barter for services or barter for donations or products. Maybe joint fund raising and joint operations of services where there are complementarities between charities. Pool their resources. Pool their fund raising, perhaps that would help them. I think if a charity this year can maintain the donations they had last year, they will be doing well."

Posted by Dave at March 23, 2009 08:00 AM