Charities in K.C., St. Louis aren't reaching fund-raising goals

ST. LOUIS -- An anemic economy, a sputtering stock market and state funding cuts are combining to make this one of the toughest years in memory for charity fund-raising.

Charities in St. Louis and Kansas City said with demand for social services up, and contributions down, they'll be left with hard choices about which critical programs to phase out in order to stay within their budget.

"A perfect storm is unfolding," said the Rev. Larry Rice, whose New Life Evangelistic Center in St. Louis is experiencing the toughest of its 30 years serving the poor.

"All the elements have come together," he said, clicking off welfare reform, loss of manufacturing jobs, plant closings, high unemployment and state funding cuts.

He said needs are growing more acutely just as donations are sliding down.

The Salvation Army in St. Louis reports its Christmas campaign is $400,000 behind where it was last year at this time. It has more than half of its $4.9 million goal to raise by Jan. 31. If the Salvation Army doesn't meet its fundraising goal, the agency will be forced to cut programs ranging from day care and family counseling to emergency housing and substance abuse treatment.

"It's been one very tough economic year," Maj. Robert Thomson said, citing state cutbacks, depreciation of company and foundation stock portfolios, layoffs, a soft economy, and an uncertain future.

'Extremely difficult year'

United Way of St. Louis, which funds more than 200 agencies, barely made its $67.5 million goal this fall in what president Gary Dollar called "an extremely difficult year."

"Everything came together: the stock market, the economy, a changing corporate community, lower company profits," he said.

The Kansas City area United Way wasn't as successful. It extended its annual fund-raising campaign three weeks, but still fell $2.8 million short of its goal.

Spokesman Ron Howard said it's only the third time in 30 years the Kansas City United Way did not meet its goal. It wanted to raise $40.4 million, but managed $37.6 million.

Howard attributed the shortfall in part on the fact that 12 of the area's largest employers reduced their work forces by 8 percent.

He also blamed the sluggish economy and foundations' shrinking stock portfolios.

Still, Howard did not see a trend developing on the horizon.

"We go through peaks and valleys, this is certainly a valley," Howard said. "We're hoping we can ride out this valley and that eventually the economy will turn around."

Catholic Charities in St. Louis, the state's largest private social service agency, has to raise $17 million every year to help pay for $45 million in annual services to the poor. The rest is made up in government contracts and fees for service.

But as the government has had to cut back its contribution, "the amount we have to raise increases," president Rich Vehige said.

"It's been a very difficult year for us, most difficult and challenging," he said. "There's been a lot of uncertainty. The economy impacts on our ability to raise funds."

Missouri's significant budget woes mean the state will disburse fewer dollars for social services, which unlike roads, prisons and education, are considered a discretionary item in the state budget, Vehige said.

"That means more has to be raised in the private sector and there's less money available for people we try to help," he said.