WINCHESTER, Va. (ABP) — Faith-based charities haven’t been hit as hard by the economic downturn as expected, says a new survey by the Evangelical Council for Financial Accountability.
The ECFA, established in 1979 to accredit Christian non-profit organizations that model standards of financial accountability, polled members in January to gauge the economy’s impact on charitable giving.
A recent survey by another organization, the National Association of Church Business Administration, found 57 percent of local congregations had experienced a slowdown in contributions.
So far that decline hasn’t filtered down to parachurch ministries, however. Nationwide, nearly three quarters (72 percent) of organizations responding to the ECFA said they exceeded, met or came close to their fourth-quarter contribution goals in 2008.
Dan Busby, acting president of ECFA, said many parachurch ministries reported small donations between $10 and $100 were relatively unaffected and in some cases actually increased. Some said with widespread humanitarian concerns related to the recession, ministries that serve the poor believe they will see less impact on giving than other organizations.
That doesn’t mean faith-based charities are immune to the economy. Forty-one percent said they froze or delayed salary increases due to the economic downturn, 38 percent froze or reduced hiring and 18 percent laid off staff. One in 10 (11 percent) reduced salary levels, while 4 percent moved to four-day work weeks.
Half (53 percent) said they had cut travel or conference expenses. Thirty percent cut or delayed capital projects, and about a quarter reduced programming (27 percent), cut consulting fees (23 percent), postponed or cut back on computer upgrades (23 percent) or considered outsourcing to save costs and increase efficiency (22 percent).
About one in 10 said they had considered borrowing from restricted funds or a bank, selling assets or restructuring debt.
Half (50 percent) said they had lost between 15 percent and 30 percent of their investment value, and 17 percent said investment losses topped 30 percent.
More than half (53 percent) said they had stepped up one-on-one contact with key donors. Smaller percentages reported structural changes like increased partnering (22 percent), considered merging (5 percent) or planned for the possibility of shutting down (2 percent).
Busby said most ECFA member ministries expect 2009 to be more challenging, because many major donors who made gifts in 2008 said they may not be able to renew their financial commitments because of the economy.
“But for leadership and staff members, this is ministry, not a job,” Busby said. “Despite challenges, most remain committed to making positive operational and structural decisions, including developing contingency plans, which will enable them to continue to carry out God’s purpose despite limited resources.”
More than 300 parachurch ministries participated in the ECFA survey.
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Bob Allen is senior writer for Associated Baptist Press.
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