OGDEN -- The economy may be scary for people on the front lines of helping those in need, but some who are involved in nonprofit fundraising are optimistic about the future.
Fraser Nelson, executive director of The Community Foundation of Utah, which studies Utah nonprofit agencies, said the last year and a half has amounted to a "perfect storm" hitting the state's nonprofits.
"They are seeing a continuing increase in demand matched by a continuing decline in financial support," he said.
"Some of us thought that, 10 months into this, we had seen the peak of demand, but that's clearly not been the case."
In a study the organization released last week, 82 percent of the health and human services nonprofits indicated they have continued to see an increase in demand while seeing more limited support.
But some groups said that, because of their many supporters, they haven't noticed a downward trend.
An organizer of Christmas Tree Jubilee, going on this week at the Eccles Conference Center in Ogden, said Tuesday all indications are that the event will raise the same $150,000 for children with disabilities in Weber School District as it did last year.
"Right now, it's the biggest year so far," said Staci Lane, jubilee chairwoman. "It's heartwarming to see the community has rallied around Christmas Tree Jubilee."
Yvonne Coiner, executive director of St. Benedict's Foundation, said although companies and corporations have limited their donations this year, individual donors have filled the void to keep her organization at about the same funding level as before the economy took a downturn.
Bob Hunter, president and chief executive officer for United Way of Northern Utah, said he sees extreme need and he doesn't quite know how it will be addressed. "The Salvation Army has just turned in their request, and it's all but overwhelming," he said.
But he is also optimistic about Ogden's ability to care, as he has also witnessed individuals stepping up to the plate as of late and believes those in need may be helped.
Last week's United Way turkey drive, the first of its kind in the area, netted 470 turkeys, surpassing the goal of 400 birds.
"People are willing," Hunter said.
"They recognize that they have a job and others out there have lost their jobs. They say, 'We should help those who don't have work and who are moving out of their homes.' We have a good community here. It's very caring."
He said he's optimistic about the community's response to a Dec. 5 nonperishable food drive as well as other needs that will come up.
Hunter said perhaps Ogden's diverse population makes it a more caring area than other parts of the state.
"We have a lot of respect for one another, a good understanding of the cultural differences and cultural needs and a good understanding that some are not at the same economic level as others," he said.
"We try to help out where we can."
But Nelson did not paint such a rosy picture.
"We are probably heading into the worst of it," she said, explaining that because foundations and corporations give amounts based on an average income on their investments, their contributions may get even smaller -- and individuals may not be able to make up the difference.
"People are getting donor fatigue," she said.
It's not that they are tired of giving, they simply are running out of resources.
Nelson said United Way's campaign last winter raised $400,000 to keep people in homes that might otherwise have been lost, but such an event might not be as successful if done today.
"People, while generous, will have less to be generous with," she said.
Nelson said some of what she learned in the study released last week has her worried that Utah's nonprofit agencies are heading into a tailspin.
With 150 nonprofit agencies responding, 35 percent say they do not have any cash reserves at all and 26 percent say they never had any reserves to begin with, Nelson said.
With hard times in the past few months, about 10 percent of the agencies have spent their reserve funds, she said.
Nearly all of the remaining nonprofits, 60 percent, are spending their reserves or believe they are going to have to spend them soon, she said.
Nelson said, with this information, she can see that three-fourths of all of Utah's nonprofit agencies soon will be considered poor.
"This is alarming in many ways."
Nelson said nonprofits are not sitting around, waiting for the money to run out. They are collaborating in many new and different ways and cutting budgets wherever they can.
"We've seen wave after wave of layoffs and budget cuts," she said. "What's striking is how many times they've done it. Eleven percent or more have cut budgets three or more times in the last 10 months."
The study indicated that 66 percent of Utah nonprofits have cut budgets, 28 percent have laid off employees, 32 percent have reduced compensation, and 29 percent have reduced benefits.
But there's at least one silver lining, Nelson said.
Asking how they could get greater value, 71 percent of Utah nonprofits have started or deepened their collaboration with other nonprofits since the recession started, Nelson said.
She said the result of these collaborations is that the community is better served, with a wider range of services, improved quality and services available to more people.
In the study, 52 percent of nonprofits said they'd been able to offer better services by collaborating, and 51 percent said they were able to serve more people.
Hunter agreed there are some positives in economic downturns.
"It helps nonprofits look at how they are doing things and where they can cut back and where they can cooperate and do things together," he said.
"When there's a lack of duplication and money can be better utilized, everybody gets served better."
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