Salvation Army Struggles With Increasing Demand

Columbus, Ohio, March 19, 2009, The Associated Press — Often the last resort for those in need, the Salvation Army in some cities is experiencing a budget crunch of its own despite a sharp increase in donations.

The Salvation Army's annual holiday Red Kettle campaign brought in a record $130 million in donations last year, up 10 percent from 2007 and the biggest one-year jump since 1997.

But the money will be spent on programs in the communities where it was collected, and many cities with the most need for Salvation Army assistance — such as Detroit and Las Vegas — are having trouble raising funds, national spokeswoman Melissa Temme said.

"It's crisis time," said Charles Desiderio, director of development at the organization's Las Vegas' office. "And I don't think we've seen the worst of it."

The Las Vegas organization has laid off about five workers out of a 250-person staff, dramatically reduced a program for female addicts and stopped offering classes on how to care for newborns, Desiderio said.

In Cleveland, Salvation Army officials have limited the amount of meat they include in food pantry grocery-bag handouts.

In Detroit, where unemployment is among the highest in the nation, the Christmas kettle and direct mail fundraising campaign fell about $800,000 short of its $8.5 million goal, said John Turner, general secretary of Salvation Army's eastern Michigan division.

"The need here is so great is that we can't possibly cut back on services," he said. "So we are just going on faith that somehow, some way the money will come in later this year."

In Houston, where millions were affected last year by Hurricane Ike, donations have dropped significantly and officials are considering scaling back programs to three days a week.

In Columbus, the Salvation Army of Central Ohio has told about 50 workers they must take nine unpaid days off between April and October, spokeswoman Alice Hohl said.