Charitable organizations are bracing for a hard year as they try to raise funds in the face of the economic crisis, which insiders say also will increase the need for their services.

Some organizations, such as Catholic Charities of Spokane, already are responding to the crisis by budgeting more conservatively, while for others, such as YMCA of the Inland Northwest, the economic downturn comes as they need to raise funds to complete major building projects.

Nonprofit foundations, such as the Inland Northwest Community Foundation, are taking hits to their investment income, which likely will affect how much they'll be able to give to the people and organizations they serve.

Still, nonprofit executives here say history shows that community donations tend to hold up well during hard times.

"Giving grows more slowly during a recession, but it still grows," says Rig Riggins, president and CEO of YMCA of the Inland Northwest.

Riggins says, though, it would be nave to think fundraising efforts won't be hurt by the economy.

The YMCA is involved in a joint campaign with the YWCA of Spokane to raise $40.5 million for two major facilities the nonprofits are constructing, one near downtown and the other just north of the city along U.S. 2.

As of Sept. 25, the nonprofits had raised $31.5 million for the projects, which are scheduled to be completed next year.

"We're closing in on 80 percent of the goal for the building projects, and we're just now involved in a community campaign," says Riggins.

Catholic Charities Executive Director Robert McCann says donations from the community have remained stable during previous economic downturns.

"We're prayerfully hopeful that donations will continue to come in," he says.

A report issued last month by the Center for Philanthropy at Indiana University on behalf of the Giving USA Foundation concludes that with the exception of 1987, total giving in the U.S. has risen every year since 1969. Much of that one-year decline was attributed to changes in tax laws that caused people to give early, the report says.

McCann says that Catholic Charities' biggest worry is its endowment, which is an important revenue source.

"The endowment, like most every portfolio, took a huge hit in the last eight months and especially in the last few weeks," he says. He declines to disclose the total endowment value, but says it's down $500,000 or more this year, "and it may get worse."

Private nonprofits with such endowments are required to distribute at least 5 percent of a fund's assets annually, even when the fund has shrunk due to losses, McCann says.

The Inland Northwest Community Foundation (INCF) relies heavily on income from its endowment funds to award grants to nonprofit groups. The foundation manages more than 250 such funds, together valued at about $62 million as of June 30, the end of its last fiscal year, says Mark Hurtubise, the organization's president and CEO.

"Total investments took a 1.9 percent hit last year, but that was offset by $3.7 million raised in the community," he says. "We were able to meet our grant commitments and distribute a total of nearly $3 million."

He says the foundation hasn't yet received reports on its investment values for the first quarter of this fiscal year.

Because of the economic downturn, the foundation is shifting its fundraising focus more toward older donors who have done some estate planning, own real estate, and may be more protected from the economic climate, Hurtubise says.

"Those 30 to 40 years old don't have the assets because of depreciated stocks," he says.

United Way of SpokaneCounty kicked off its annual workplace-giving campaign in late summer, and Tim Henkel, the organization's president and CEO, says he's encouraged by contributions that have come in so far.

"Six companies that participated in August and September collected $530,000, which is 12 percent of our overall goal," Henkel says.

That total is up 23 percent over donations from the same companies last year, he says, adding that the donations were committed prior to the most recent economic events, but when gas prices had climbed as high as $4.40 a gallon.

United Way's goal here this year is to raise $4.7 million, which would be 6.9 percent more than in 2007, Henkel says.

"Over the next four to eight weeks, we'll start getting a clearer picture of how the campaign is going," he says.

Also, Henkel discounts any possible effects the election season might have on donations. "In my experience, elections have always been separate," he says.

Executives at nonprofits here say they haven't seen donations from corporations decline yet.

At Spokane-based Avista Corp., annual corporate donations are expected to remain stable, at about $1.2 million, this year, says spokeswoman Jessie Wuerst.

The energy company created the Avista Foundation in 2002 with an initial $2 million endowment funded when the company sold its stock in Itron Inc., which had been an Avista startup. Through investment returns and additional contributions, the fund had grown to $4.2 million by the end of last year, Wuerst says. She declines to disclose more recent asset values.

"The endowment is well-diversified," she says.

She says the fund was set up to help ensure continued charitable contributions from Avista during economic downturns.

Riggins, who is working on YMCA's 2009 operating budget, says, "I think our projections will be more conservative than in the past just because of" economic trends.

Still, he says, the big projects the YMCA and YWCA are developing will necessitate some increase in budget.

"We're opening two new facilities, and we'll serve 40 percent more people," he says. "Our budget is going to be bigger. The question is how much bigger."

Riggins says charities that might be most vulnerable to economic downturns are those that are tied to special events.

"Donors view events as optional participation rather than direct donations," he says.

He says it will become increasingly more important for organizations to "stay true to their missions" and to be frugal with charitable dollars.

"Donors will make their choices to ensure charities are in line with their values," he says.

Hurtubise says INCF has seen an increase in requests for funds to buy food for food banks, after-school programs, and elderly services in its latest round of grant applications.

"The economy is not only affecting a person's investment portfolio—people are making choices between paying for mortgages, credit cards, and food," he says.

Hurtubise says that although he's confident the foundation's assets will continue to grow, needs for assistance in the community may grow even faster.

"One of our biggest challenges will be deciding where to award grants to meet growing needs," he says. "People want to see grants going to improve lives directly, measurably, and visibly. Their demands for nonprofits to show that are going to increase."