Global financial crisis cuts into charitable funding in B.C.

B.C.'s largest charitable foundation has lost $100 million as a result of the global financial crisis and will have to cut its grants to non-profit organizations by half next year, a spokeswoman said Friday.

"We're probably looking at a $10 [million] to $15 million decline in the amount of money we put back into the community," said Catherine Clement, the Vancouver Foundation's vice-president of communications.

The organization, formed in 1943, is the largest of Canada's 160 community foundations, according to its website.

Clement said Friday the foundation's endowment fund held at $760 million at the beginning of this year. Now, it's worth about $660 million, she said, much owing to the ongoing investment market meltdowns.

"Just like people may have a savings account, a lot of charities rely on creating an endowment fund, and they use the interest off that money each year for operations, so they are affected a lot by the investment market," she said.

The estimated 700 non-profit organizations that turn to the foundation for funding each year can expect less money next year, Clement said.

"Many of these charities do great work but operate on shoe-string budgets, so any reduction makes a difference to them," she said.

"It could mean one less staff person or several less staff people. It could mean they don't give out as many meals or they can't fix as many bicycles for kids."

Michael McKnight, president and CEO of United Way of the Lower Mainland, which raises funds through workplace campaigns, said there is an up side to the downturn of world economies.

"When times get tough, donors tend to dig deeper into their pockets, recognizing that there are people around them that need additional support," he said Friday.

The Union Gospel Mission, a non-profit urban relief organization serving the Lower Mainland, said the level of donations it received has remained more or less the same since the credit crunch, but demand for various services has increased.

"A plateau can be just as unhelpful as a dip, because we're seeing more people in need of our services … and things are just running a bit tighter," spokeswoman Keela Keeping said.