Maine charities face difficulties in raising funds State ranked 49th in philanthropy

PORTLAND – Maine ranks near the bottom among states for giving to charities. The economy is in recession. The nation still is reeling in the aftermath of the Sept. 11 terrorist attacks.

Those facts make nonprofit organizations shudder, yet many are meeting or exceeding fund-raising goals this year.

The state’s biggest United Way, for example, set a fund-raising record of more than $9 million in Greater Portland. Maine Public Radio had its best fall fund-raising campaign and welcomed more new members than ever before. Other nonprofit organizations also say people are digging deeper.

“There is that contagious feeling of ‘I want to give, I want to be a part of something.’ People have been inspired,” said Janet Henry, president of the Maine Philanthropy Center in Portland.

The full impact of the terrorist attacks and recession on the 1,800 Maine nonprofits that engage in fund-raising remains to be seen.

Many charitable and nonprofit groups won’t know until next month how they fared because so many contributors wait until the end of the year to assess their financial situation and decide how much to give.

So far, however, many nonprofits large and small across the state have been pleasantly surprised by the outpouring of support.

Most of the larger United Way agencies from Portland to Presque Isle surveyed by The Associated Press expect to meet or exceed goals. Other large charities like the Salvation Army and Catholic Charities report that fund-raising is on track to meet budget targets for the year.

“We feel there’s a serious reflection by citizens on the need to give. We think that, therefore, we can survive this recession,” said John Walker of the Maine Association of Nonprofits.

But the good news for many charitable organizations is of little consolation to those organizations that are struggling.

In northern Maine, the A.E. Howell Wildlife Conservation Center is struggling because two key contributors withdrew donations.

One of them lost more than 30 associates in the World Trade Center attack and the other suffered losses in the stock market, said Arthur E. Howell Jr., who runs the center in Amity with a staff of volunteers.

“We didn’t count on this,” said Howell, who has taken out a loan on his life insurance policy to get through the winter.

Another agency that is hurting is an unlikely one – the Red Cross. People across the country donated millions of dollars to the Red Cross fund for terrorist victims, but none of that money stayed in Maine.

The Red Cross in Aroostook County is down by $15,000 to $20,000 out of an annual budget of $100,000 because many donated their money for the local Red Cross to the national victims’ fund, said Larry Harrison, branch manager.

What’s more, some were outraged when they learned money donated to victims might go to other purposes, and at least seven wrote letters threatening to cut off future donations, Harrison said. The Red Cross later reversed course, but the damage already was done, he said.

The overall trend toward healthy donations flies in the face of conventional wisdom that contributions lag in times of economic uncertainty, especially in a state that already lags in charitable contributions.

Maine ranks 49th among its peers for the average amount contributed to nonprofit organizations by residents who itemize their deductions on federal tax returns, according to Giving New England, which identifies and promotes opportunities for organized philanthropy.

Overall, New England ranks at the bottom among regions in terms of charitable giving, according to the 2001 Generosity Index by the Urban Institute’s National Center for Charitable Statistics.

Maine also has a small population – 1.2 million – compared to the number of nonprofits – 4,000. An estimated 1,800 nonprofits engage in fund-raising, and 1,600 have budgets greater than $25,000, Walker said.

Against the backdrop, it may seem surprising to some that contributions have held their own. But it shouldn’t surprise everyone.

A study by the Center on Philanthropy at Indiana University found that giving did not drop during times of crisis ranging from the assassination of President Kennedy to the attack on Pearl Harbor. The only time donations dropped was after the 1987 stock market crash.

The fact that many Mainers are digging deeper to donate to charities sets a good example for a new generation of youngsters.

Kids who set up lemonade stands or collect pennies for charities are the next generation of donors, Henry said.

“I have a theory that this could be teaching the next generation the new traditions of giving,” she said.