We've been warning for some time now (see here, here, here, here, here, here and here) that human services charities (food banks, youth programs, homeless services) can be especially hard hit in a down economy. Why? The demand for their services goes way up, but the pace of income doesn't match that demand.
That makes a new study by the Urban Institute, showing that government support for such groups is down, especially troubling. Their findings reveal that:
- 56% of human service charities received less funding from State Governments
- 49% received less from Local Governments
- 31% received less from Federal Agencies.
- 21% cut programs and services
- 17% are helping less people
- 50% have cut salaries or refrained from issuing pay increases
- 39% have dipped into their rainy-day funds
- 23% have reduced their employees benefits
- 22% have had to borrow money.
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