Monday, December 24, 2007

Faltering U.S. Economy Takes Toll; Salvation Army Reports Dip In Holiday Donations

The sub-prime crisis, oil price increases and economic uncertainty has taken its toll on one of the world's most recognized charity organizations.

The Salvation Army reported a dip in donations for 2007 across America.

Thomas Langdon, Salvation Army officer in Boston, said collections went down by 8 percent.
The cut was larger at 30 percent in Maine and New York City, while Florida had a biggest cut at 40 percent.

The Yuletide gloom is also felt by other charity organizations, ranging from slight declines to a major slash in contributions. The Catholic Charities of Boston said it only suffered a minor slowdown in cash and gift donations. Toys for Tots, a foundation run by the U.S. Marines, almost had a shortfall, were it not for a $78,000 donation from Olivia's Organics, which enabled the organization to purchase 15,000 toys to be given to poor children this Christmas.

While donations were decreasing, the number of people seeking help was on the rise. According to Jake Kennedy, operator of Christmas in the City, a charitable organization that provides assistance to homeless children in Boston, 900 families sought help from it this year, almost double last year's 500 families.

Virginia Reynolds, a spokeswoman for the Catholic Charities of Boston, explained, "Prices are going up, the obvious stuff. It's becoming increasingly difficult for people to pay their bills, pay rent and also get presents for Christmas."

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