WASHINGTON (CNS): Officials at Catholic aid agencies said it is too early to tell how the shaky economy will affect their donations and investments and noted they are cautiously preparing for the future.
President and chief executive officer of the New York-based Catholic Medical Mission Board, John F. Galbraith, said non-profit organisations tend to react more slowly to market punches than other sectors of the economy.
Although “it is premature to look at our results (of donation revenue) in the past two months,” he told Catholic News Service (CNS) on September 30, the board has “to be prudent at this point in time”.
“The psychology of the stock market is just as important as the reality of the stock market; if people think they have less money we have to prepare for it – that they will give less money,” Mr Galbraith said.
“If they are on a fixed income, they will be much more diligent. We’re not going to lose them (as donors), but they will be more careful of how they allocate that portion of money they can afford to be charitable with.”
The Catholic Medical Mission Board sends medical supplies and volunteers to poor missionary countries.
Like many US-based aid agencies, it uses its donations to fund programs abroad.
CMMB officials “always project conservatively (and) evaluate on a close basis weekly and monthly”, Mr Galbraith said.
The small revenue the agency earns from dividends would not be included in the next fiscal year budget, which began on October 1, said Mr Galbraith, adding that any money earned from stocks will be a bonus.
Just in case of revenue loss, the board will have “contingency plans as far as programs in the works” and will “delay future programs if need be”, he said.
“When programs are up and running, the last thing you want to do is shut them because of lack of money,” he said.
Regardless of what might happen with the stock market and the economy, the need to fund programs at home and abroad has not waned.
Senior director of development for Catholic Charities USA Patricia Hvidston said the agency was intensifying its focus to garner donations “because the need is there and increasing exponentially”.
She cited an increase in need for mental health counselling since the cost of living has increased.
More and more of the working poor need assistance; “they just can’t stretch the dollar far enough”, Ms Hvidston told CNS.
Senior vice-president for finance and administration for Catholic Charities USA Jack Jackson said Catholic Charities had taken “a moderate-sized hit” in reaction to the shaky economy and is looking to reduce expenses and potentially dip into its reserves and move funds.
“We are prepared to ride through the market ups and downs,” he said.
Although investment revenues are down for Catholic Relief Services, the US bishops’ international relief and development agency has seen growth in donor contributions over the past fiscal year, which ended on September 30, said executive vice-president of charitable giving for CRS Michael Wiest.
Mr Wiest said he credited people’s faith for the continued donations from both major and direct-mail givers. More than 90 per cent of CRS donors are Catholic, he noted.
“It is part of their faith identity” to participate in charitable giving, he told CNS on October 1.
“I see it as being similar to going to Mass. It is a little less optional for them” whether or not to give, he said.
Director of development for Jesuit Refugee Service Ronald Ferreri expressed nervousness over the recent tumultuous economic times.
“At this point all bets are off” and there’s no telling what will happen with donations, Mr Ferreri told CNS on September 30.
“Quite frankly, I am a little nervous.”
Mr Ferreri said he thought that educational institutions and churches, which have a long-term commitment from loyal donors, might fare better than aid agencies like JRS, an international Catholic organisation that serves refugees.
Only since the December 2004 Asian tsunami has JRS been able to gain a commitment from donors, he said. Although its revenue from donations had continued to grow over the past few years, “we are concerned that we (won’t) be able to maintain it”, he said.
According to some analysts, when US markets sneeze, the world catches a cold.
Mr Wiest said the drop in the value of the US dollar had dramatically affected CRS programs abroad.
“It is sad” the money crisis “is happening at a time when the poor are suffering from a food crisis”, he said.
“Families worldwide are struggling to feed themselves,” he said.
Although strong donations help make up for the weak dollar’s losses, the agency’s “ability to counter that trend has been muted”, he said.
Communications officer for Development and Peace in Canada Eleonore Fournier-Tombs said the economic crisis increased Development and Peace’s mandate to help the world’s poor.
Development and Peace is the international development organisation of the Canadian Catholic Church.
“It will make us work harder” for the poor who will be hit the worst, she said.
