WASHINGTON-Despite predictions of big cut-backs in consumer holiday spending, apparently there's nothing like an economic downturn to increase charitable giving, according to one expert.
"I've been involved in fundraising for over 30 years, and have seen what I call a giving phenomenon that occurs during the most difficult economic times," said Stephen Delfin, executive director of the National Credit Union Foundation, who said people actually give more-not less.
"It is counterintuitive, but historically consistent," Delfin said. "Granted these are unprecedented economic times, but initial giving reports suggest that individual giving may actually increase this holiday season."
Delfin said that while many credit unions are currently facing liquidity issues, contributions to NCUF are remaining strong.
"Our largest institutional supporters are making commitments equal to or greater than in the past," he said.
But can that hold up throughout next year?
"We are in some unchartered territory in terms of the economy, but we are in touch with our supporters and confident we can hold strong in the coming year. So I am cautiously optimistic," Delfin said. "Unlike the for-profit sector, where corporate giving is often a victim of tough economic times, I believe that credit unions and the institutions that do business with them will continue their institutional giving and support of NCUF, state credit union foundations, and other charities close to the credit union movement like Children's Miracle Network, Homes for Our Troops, and the thousands of local charities that credit unions, their employees and members also support. It's an integral part of the movement's people-helping-people philosophy."
American First Credit Union, in La Habra, Calif., plans on continuing in all of its usual holiday contribution this year, despite the current economic storm, however it does expect to see a slight decline in staff participation because of it.
"However, we are currently running a canned food drive for our staff to donate to the Orange County Food Bank for Thanksgiving," said Ryan Zilker, vice president of marketing and strategic planning for American First CU.
There is not a final count yet of the number of cans, but Zilker said he was surprised how many staff members participated.
"We have hundreds of cans stacked up ready to be donated later this week," he said, the visit before Thanksgiving. "Additionally, our community was recently hit by horrible wildfires and as part of our support, we are collecting used clothes for the fire victims."
American First CU also collects donations for Children's Miracle Network, through Credit Unions For Kids, via payroll deduction.
"We've seen a slight decline in donations," Zilker noted. "This is a function of few staffs and the tough economic times."
Something new this holiday season for American First CU is supporting local food banks.
Zilker said the key in keeping people interested in giving during these times is creativity.
"Knowing that staffs are struggling, we're going to sell raffle tickets for a 50/50 raffle," Zilker said. "We are hoping that a chance to help out the community and win a little something for themselves might encourage staffs to buy a few raffle tickets. All money collected will be used to buy food to donate to the food bank."
This year, American First CU is actually doing more than in years past because of the greater need in the community, Zilker said.
"I would always like to be able to do more, but I feel like we're making very good use of the limited resources we have," he said.
For Carolina Postal Credit Union in Charlotte, N.C., its philanthropic efforts are "so far so good," said Deb McLean, VP of marketing and business development for the CU.
"We are wrapping up our Operation CU Troop and it looks like we have enough donations for over 500 gift bags for the soldiers deploying in December," McLean said.
The credit union didn't get as many donations for Operation CU Troop this year-last year it had more than 1,500 bags, "simply because some of the North Carolina credit unions that participated last year, this year were doing their own thing," McLean said, "not due to the economy."
Carolina Postal CU is also participating in a Toys for Tots drive in Charlotte, which will run through Dec. 17.
Erie FCU, in Erie, Pa., is participating in the same community efforts as last year, said Sandi Carangi, VP, business development for the CU. Its fundraising efforts include its involvement with the Erie Chapter of Credit Unions and the Kiwanis Club.
"Our employees have been very generous, and this year contributed more than last year," Carangi said. "But there has been an increase in the need for donations from local charitable organizations. This year there is an increase in the number of requests from charitable organizations, so of course we would like to contribute more."
Maine Savings FCU in Hampden, Maine, said the struggling economy is inspiring the CU to be more charitable. "We're actually more motivated about charitable giving this year, and fully intend to be even more creative in finding ways to raise money for those disadvantaged," said John Reed, CEO of Maine Savings FCU.
"Our primary focus in Maine is ending hunger, and one office is having staff bake pies for a big pie sale during these holidays with money raised going to ending hunger," Reed said. Another staff member is making ornaments to sell for ending hunger, he added.
"We truthfully intend to raise more during these times because more is needed," Reed said. "And we can never raise enough for our charities."
Zilker expects communities as a whole to experience less material donations, but more practical donations.
"People who are working realize how lucky they are, and they see the need in the community and they want to help," he said. "I don't think it'll be a black Christmas-just a slightly different shade of grey."
Carangi said that although the Erie community economy has not been hurt as much as other parts of the country, the recent news of several major employee layoffs in the area could affect their local charitable organizations.
For More Information
www.ncuf.coop
www.amerfirst.org
www.eriefcu.org
www.mainesavings.com
www.cpcuonline.com
www.childrensmiraclenetwork.org
www.kiwanis.org
