Layoffs, unpaid furloughs and hiring freezes have taken a toll on Snohomish County non-profit agencies, but not in the way you might think.
It’s their corporate sponsors that are implementing severe cost-cutting measures to compensate for losses. And farther down the line, those cuts translate into less generous donations to local community groups and arts organizations.
Scott Sadler, vice president of planning and development for the Snohomish County YMCA, said he hears a familiar message from corporate donors lately, and it goes something like this: “We’re cutting benefits at our company. How can we justify making a donation?”
That’s a valid concern — at least, that seems to be the consensus among companies in the Puget Sound region.
A report released last month by a group of Seattle-area arts organizations reported corporate giving is down by as little as 5 percent at some groups and as much as 50 percent at others.
The report was based on confidential interviews with almost 30 arts organizations and mirrored the findings of studies conducted elsewhere in the country.
But it isn’t just arts organizations that are taking a hit; it’s any group that depends on the generosity of companies and business people.
Despite generally lower corporate giving, the YMCA of Snohomish County reached its goal of raising $1 million for youth programs earlier this month — an increase over last year’s numbers.
Corporate donations from a few larger corporations have remained steady, Sadler said. Despite the recession, Boeing, Wells Fargo and Bank of America have maintained giving levels between $10,000 and $20,000.
But those corporations are the exception.
Donations from banks and individuals tied to banks have dropped significantly since the nation’s financial sector entered a state of crisis last year. Donations from real estate companies haven’t been pouring in, either.
Sadler wouldn’t specify which corporations have scaled back or halted donations to the YMCA. But he said a small group of volunteers have helped compensate for the loss by soliciting donations from new sources. And some longtime donors, recognizing the trend away from nonprofit giving, have stepped up their support to make up the gaps in corporate giving.
A number of local financial institutions declined to comment on their corporate giving policies.
And a few arts organizations said they’ve noticed no discernible differences in donations, though it’s possible they won’t feel the brunt of the ailing economy until 2010.
That’s the case for the Village Theater at the Everett Performing Arts Center, where a donation campaign targeted at theater patrons is proving to be a little less lucrative than usual. A spokeswoman for the theater said corporation and foundation giving will likely be down about 10 percent in the next fiscal year.
The Arts Council of Snohomish County ended last year about 6 percent in the red, Executive Director Judy Tuohy said. That’s means 2008 was a bad year for donations; the council usually breaks even or brings in a little extra.
Tuohy said corporate sponsorship started slowing down last summer, and it hasn’t yet rebounded. She expects that won’t happen until the end of the year at the earliest.
“Things haven’t gotten worse — we’re hoping that they’ve kind of leveled off,” she said.
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