Toronto, ON May 13, 2009 – The financial crisis has impacted donors that give appreciated securities to The Salvation Army, according to new figures released today. For the year ended March 31, 2009, The Salvation Army saw a $5.8 million, or 83 percent, drop in securities-related giving. While dollars raised declined from nearly $7 million in 2007 to $1.2 million in 2008, the number of planned securities gifts also declined precipitously from 289 to 142 – a 51 percent drop.
The Salvation Army is heavily dependent on donations and investment income, both of which can be negatively impacted in challenging financial times. Regular cash donations have seen a slight rise, but this increase has been offset by the significant decline in gifts of securities due to the decline in the markets. This net decrease in donations is especially worrisome as demand for the organizations services continues to increase by 10-30% in virtually every province.
“Clearly, the economic downturn is hitting charities hard,” said Lois Flemming, Territorial Director of Major Gifts and Planned Giving for The Salvation Army. “As stock values have declined, so too have the number of donors making gifts of publicly traded securities that generate millions of dollars to help us serve people in need.”
In the last few years, the number of appreciated security donations to The Salvation Army rose, largely because of changes to Canadian tax law, which eliminated the capital gains tax on gifts of appreciated securities which were donated directly to charity. But, in 2008, that number dropped for the first time to its lowest level since the approval of the new regulation in May 2006.
“Security giving was a trend that we saw increase dramatically after the passage of the capital gains tax exemption,” said Lois Flemming. “Now, we are seeing fewer of these sorts of gifts and the gifts we are seeing are generally smaller as would be expected in the current market.”
The new data is being released in the midst of the Army’s annual Red Shield fundraising campaign. During the month of May, The Salvation Army is raising funds and awareness for the more than 3.5 million Canadians living in poverty today. As the largest non-governmental provider of service in Canada, these funds support programs like the Army’s shelter care, transitional housing, substance abuse and employment training services. The Red Shield Campaign is an annual event that has been a May tradition for 90 years.
“It’s a double-whammy for The Salvation Army as an organization – as need is increasing, these critical gifts decline,” said Graham Moore, Territorial Secretary for Public Relations and Development. “Our commitment to serving those who need it most has not wavered, but we are increasingly reliant on fundraising streams such as direct mail and online giving.”
Securities may be transferred as a donation to The Salvation Army either by electronic transfer through a broker, or by physical delivery of a security document (e.g. stock certificate).To arrange a gift of securities or to obtain more information on gift planning contact The Salvation Army by phone at 1-800-SAL-ARMY or by email at donor_question@salvationarmy.org.
About The Red Shield Campaign:
The Red Shield fundraising Campaign is an annual fundraising and public awareness campaign held annually in May. The Salvation Army utilizes online, phone, direct mail and door-to-door appeals to solicit donations from generous Canadians. Giving to The Salvation Army offers an opportunity to invest in the future of marginalized and overlooked people in your community. 88 cents of every dollar raised by The Salvation Army goes directly to support those in-need. To learn more about the campaign please visit: www.SalvationArmy.ca
About The Salvation Army:
The Salvation Army is an international Christian organization that began its work in Canada in 1882 and has grown to become the largest non-governmental direct provider of social services in the country. The Salvation Army gives hope and support to vulnerable people today and everyday in 400 communities across Canada and 118 countries around the world. The Salvation Army offers practical assistance for children and families, often tending to the basic necessities of life, providing shelter for homeless people and rehabilitation for people who have lost control of their lives to an addiction. When you give to The Salvation Army, you are investing in the future of marginalized and overlooked people in your community.
News releases, articles and updated information can be found at www.SalvationArmy.ca
For further information please contact:
Andrew Burditt
Territorial Public Relations Director
The Salvation Army
416-845-8231
andrew_burditt@can.salvationarmy.org
