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Donations slow for Eastern Iowa nonprofits during major fundraising season
Dec. 21, 2018 7:16 pm
IOWA CITY - The holidays are an important time for fundraising for area nonprofits, but many organizations are seeing less giving this year.
Organizations like the Crisis Center of Johnson County and Salvation Army of Cedar Rapids say donations are coming in slower than previous years but they're still hoping to meet their fundraising goals, though there are concerns that new federal tax laws could be to blame for the drop in giving.
Bell ringing for the Salvation Army's Red Kettle campaign runs through Christmas Eve. Earlier this week, the organization was just half way to its $763,000 goal.
Shalla Ashworth, director of development and communications, said Salvation Army branches across the country are seeing a downturn in giving this year to the Red Kettle campaign, although some people may have donated to causes such as California wildfires instead, she said.
Ashworth said the organization won't change its financial goal because it needs that much to run its facilities and programs. Last year, the organization met its $748,000 goal, albeit much of the money came in late in the campaign.
She's hoping for that last-minute boost this year, but she said there are many reasons people may not be giving.
'There's multiple factors. We're in uncertain times and people, I think, are a bit more careful right now just because we don't know where the economy and country might be going,” Ashworth said. 'Taxes are going to be much different next year because of the different tax laws that are happening. We knew that was probably going to impact us.”
Taxpayers who itemize their taxes can deduct charitable donations. But under the new federal tax laws that went into effect this year, the standard deduction nearly doubled - from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for families. With that much of an increase, fewer people are expected to itemize their deductions, and that has charities worried that people in turn will decrease the amount they are willing to give.
United Way of East Central Iowa is having a different experience this season. Thanks to its fundraising model through workplace campaigns, much of the organization's funding comes during September through November.
Amy Geiger, vice president of resource development at United Way, said her organization is seeing 'minimal effect” of the new tax law and is trending close to last year's fundraising.
'With our strong presence and support from area businesses and their employees, we tend to feel the effects of corporate changes at both the local and national levels,” Geiger said.
During December, the Crisis Center sees about a third of its donations, which it depends on to support the center through the end of the fiscal year. Sara Sedlacek, communications and development director, said fundraising is behind where it typically is at this point.
Last year the center raised about $260,000 during the month, with this year's goal being to exceed that, Sedlacek said, adding that she hopes it's a timing issue this year and donors just haven't yet written their checks.
'It's very possible that people give this time of year because of taxes - maybe the people who are actually going to be affected by that, we wouldn't see that until now,” Sedlacek said. 'I don't know if we will see a dip. I just really truly believe people don't give for a tax break.”
Similarly to the Crisis Center, the Coralville Community Food Pantry sees nearly a third of its budget come in around the holidays. John Boller, executive director, said his organization is just shy of $30,000 with a goal to raise $50,000 this season.
Boller said giving was down for the first three quarters of the year, making a final push this season all the more important.
The majority of the pantry's donations come from moderate-income families who wouldn't necessarily write off donations, he said. But for donors who give multiple large contributions, there's concern that the new tax laws could 'hinder their ability to maximize their impact,” Boller said.
'If legislators continue to decide to dramatically alter or cut funding to vital social welfare programs, they better make it easier for private donors to support charitable organizations, which is not what the new tax laws appear to do,” Boller said.
How to give:
Salvation Army
' Red Kettles are out through Monday at many area businesses.
' Credit card donations can be made by phone at (319) 364-9131, online at sacedarrapids.org and in person at 1000 C Ave. NW in Cedar Rapids.
' Checks can be mailed or delivered in person to 1000 C Ave. NW, Cedar Rapids, IA 52405.
Crisis Center Of Johnson County
' Credit card donations can be made online at jccrisiscenter.org or by calling (319) 351-2726, Ext. 105.
' Checks can be mailed to the Crisis Center at 1121 Gilbert Court, Iowa City, IA 52240.
Coralville Community Food Pantry
' Credit card donations can be made online at coralvillefoodpantry.org.
' Checks can be mailed to Coralville Community Food Pantry at P.O. Box 5523, Coralville, IA 52241.
United Way Of East Central Iowa
' Credit card donations can be made online at uweci.org.
l Comments: (319) 339-3172; maddy.arnold@thegazette.com
Karen Mandulak of Coralville, Iowa, shops for groceries for her daughter at The Crisis Center of Johnson County's food bank in Iowa City, Iowa, on Wednesday, Dec. 19, 2018. Mandulak said that this was the third, and successful attempt, to shop at the food bank this week since it is so busy. The center has seen an increase in the number of registration this year with over 1,800 registrations compared to a usual number of 1,600. The center is expecting to serve about 2,000 families during this week before Christmas. That number is about double what the center has seen in previous years. (Jim Slosiarek/The Gazette)
Volunteers Peg Horn (center) and Beverly Robalino both of Iowa City, Iowa, bag groceries for a client at The Crisis Center of Johnson County's food bank in Iowa City on Wednesday, Dec. 19, 2018. Mandulak said that this was the third, and successful attempt, to shop at the food bank this week since it is so busy. The center has seen an increase in the number of registration this year with over 1,800 registrations compared to a usual number of 1,600. The center is expecting to serve about 2,000 families during this week before Christmas. That number is about double what the center has seen in previous years. (Jim Slosiarek/The Gazette)
Martina Smith (left) puts boxes of stuffing into a cart as she and her mother Gladys Watkins both of Iowa City, Iowa, shop for groceries at The Crisis Center of Johnson County's food bank in Iowa City on Wednesday, Dec. 19, 2018. The center has seen an increase in the number of registration this year with over 1,800 registrations compared to a usual number of 1,600. The center is expecting to serve about 2,000 families during this week before Christmas. That number is about double what the center has seen in previous years. (Jim Slosiarek/The Gazette)
Karen Mandulak (right) of Coralville, Iowa, talks to volunteers Beverly Robalino (center) and Peg Horn (left) both of Iowa City, Iowa, as she shops for groceries for her daughter at The Crisis Center of Johnson County's food bank in Iowa City on Wednesday, Dec. 19, 2018. Mandulak said that this was the third, and successful attempt, to shop at the food bank this week since it is so busy. The center has seen an increase in the number of registration this year with over 1,800 registrations compared to a usual number of 1,600. The center is expecting to serve about 2,000 families during this week before Christmas. That number is about double what the center has seen in previous years. (Jim Slosiarek/The Gazette)