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How has inflation impacted Metro Detroit charities & nonprofits?

DETROIT (WXYZ) — In a recent analysis from the Michigan Nonprofit Association, charitable contributions saw a drop this year, a trend that could continue into 2024.

The findings stem from a comprehensive survey, which included responses from various nonprofits across the state.

Many non-profits are grappling with the effects of inflation and economic uncertainty, and that may explain why people I spoke with say the reason they haven’t been able to give as much as they’d like to boils down to money.

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“I’ve had to decrease because of the cost of living in general,” said Lauren Paterson.

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“What you were able to give in the past you’re no longer able to give because you have to be mindful of other things that could happen,” said Tim Sochocki.

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“It hasn’t impacted our giving because people need the help regardless,” said Ronald Hill.

Charitable giving in Michigan has started to decline over the years, a trend attributed to economic pressured faced by many Metro Detroit residents.

As inflation rises and everyday expenses increase, many potential donors are finding it harder to give.

“In the past I would pick a few charities I cared about and I would be a couple hundred to a thousand dollars throughout the year. Whether that be charities church whatever now that is about half,” Tim said.

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“Both locally and nationally we are going to see a decline in total giving,” said Michael Montgomery.

Montgomery runs Montgomery Consulting. He says he has seen a decline in charitable giving for the last three years.

In a survey of 54 non-profits across Michigan by Montgomery consulting, it shows that Michigan’s charitable sector has been under pressure, with economic challenges affecting both donors and organizations alike.

Forgotten Harvest is one of those non-profits that has felt this affect, but has seen their need for food grow by those who utilize their services.

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“What we’ve seen typically throughout the year thus far, is we have less donors that are beginning to share with us” said Forgotten Harvest CEO Adrian Lewis. “Those donors that we do have sharing slightly more.

The decline in donations is particularly troubling, as many organizations rely heavily on these funds to provide essential services. The Salvation Army tells me for this year, in part:

“It’s still too early to get a clear picture of what donations will look like for this season, as we just put our kettles out last week. However, we’ve seen a positive increase in volunteer bell ringers.” the organization said in a statement attributed to Major Charlotte Hall, the Metro Detroit Area Commander & General Secretary.

While the amount of money people might be donating is smaller, those I interviewed still believe in making an impact in any way they can.

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“I think because the price of living has gone up, people aren’t as inclined to give, but if you make it a group effort, it makes it easier to give a donation,” said Ambreia Stevens.

“As bad as you have it, someone has it worse so being charitable is really important,” Lauren said.

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