Charity homes feel pinch as donations drop, prices rise

Charity homes feel pinch as donations drop, prices rise

Hit by a double whammy of fewer contributions and inflation, the homes turn to fundraisers and 'good friends' to make ends meet.

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Penang exco Chow Kon Yeow (in light yellow shirt) with St Joseph’s Home children when he dropped off vouchers for new school uniforms and bags for them.
GEORGE TOWN:
The rising cost of living, a poor-performing currency and weak sentiments have taken a toll on Malaysians across the board.

This means bad news for charity homes dependent on public donations to pay the bills.

“We received 40-50% less cash donations this year, compared with 2015.

“Even the corporate sector has not given as much as before,” said Shan Children’s Home administrator R Krishnan.

Krishnan, who has worked in the orphanage in Tanjung Tokong here for two and a half years, said times were better in 2014.

He said it was understandable that people could afford to donate more when they had more than enough for themselves.

“When people have a good income, they can give (donations to the home). Now, we get less,” he said.

The home needs RM12,000 to RM15,000 a month to care for 26 children who are orphans or from broken homes. The money is spent on the children’s needs, food, utility bills and staff salaries.

Krishnan said there were months when donations were low and money was tight and the home had to rely on the kindness of good friends.

“Our board chairman chipped in, and I had to call my friends for help. My friends also called their friends. Thankfully, there are still good people out there.

“We also get some food donations. When we had little cash to give the children for pocket money, we cooked food for them to take to school.”

Krishnan blames the policies of the government, such as the goods and services tax, for the rising cost of living.

“You ask me if the situation has made things harder for charity organisations. I think that should be a question for the Cabinet.

“Did they consider what their policies would do to the people before they implemented them?

“It is getting tougher for a lot of NGOs – whether orphanages or old folks homes.”

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Tanjung MP Ng Wei Aik (left) chats with children from St. Joseph’s Home

At St Joseph’s Home here, where 42 orphans and children from broken homes, aged six to 18, live, administrators have to work hard to make every sen count these days.

The home spends RM45,000 to RM50,000 a month on the children, salaries for full-time caregivers, kitchen staff and drivers, general upkeep, and maintenance of two vans to transport the children to school and back.

James Tan, a board member of the home, told FMT they could do less with the money they receive now as things had become more expensive.

Although the home received a grant from the Welfare Department and some help from the state government, it still depended heavily on the public’s generosity, he said.

“Sometimes, we get people dropping by with RM100 or RM200 donations, and temples donating food.

“Companies contribute sometimes by treating the kids to a meal or two and donating books and toys.

“Any small amount of cash helps now that we are facing rising prices.”

With uncertainties surrounding the economy, Tan said faith and belief in miracles helped the home face its cash flow pressures.

“We need to have faith. Without it, we cannot run a home and face all that pressure.

“It is hard to say if things will worsen or improve since that depends on the economy.

“So far, we have been able to pull through but we cannot deny that things are getting tougher. We hope it will not come to a point where we have to organise fundraisers.”

In Petaling Jaya, homes for the underprivileged are also finding it hard to get funds from the public during the economic downturn, leading some to think outside the box to raise money for their daily operations.

Beautiful Gate Foundation For The Disabled founder Sia Siew Chin said in the last two years, public funding for the home had dropped about 50%, leading to cost-cutting measures.

“We froze the hiring of new staff to tighten our finances. The existing staff have been given only a small pay increment even though one person may have to do the work of three now,” she told FMT.

Sia said the home was also holding fundraisers to get money.

“We have no choice but to conduct such events,” she said, adding that they held three big fundraisers this year.

She hoped companies could sponsor them next year as they did not have a regular sponsor.

“We hope our disabled residents can also be offered jobs,” Sia said.

Agathian’s Shelter has been holding monthly Sunday luncheons since last year as part of the orphanage’s self-sustaining plan, said its supervisor, who only wanted to be known as Lotus.

“We have to do something instead of waiting (for funds),” she said, adding they were planning a family day event next year.

She said before 2014, they had only to hold charity events once in two years, but the situation changed last year when the GST came into force.

“We are not exempted from paying GST for the things we buy, from food to medicine to house rent,” Lotus said.

Meanwhile, Pusat Penjagaan Kanak-Kanak Cacat Taman Megah in Petaling Jaya is “doing all right”, says its manager V Baskar.

He said the home for disabled children relied on items donated by the public.

“Financially, we can still handle it. The daily necessities like food, medicine and clothing are taken care of.”

Penang exco and Padang Kota assemblyman Chow Kon Yeow said even though some charity organisations still received the same amount of money from donors, the value of the donations had shrunk.

“The value is smaller since things have become pricier,” said Chow, who recently donated school uniforms and bags to the St Joseph’s Home.

Tanjung MP Ng Wei Aik, who recently treated the children from the same home to a buffet lunch, also said many charity organisations were feeling the pinch with fewer donations.

“We know that running a home is not easy. We want you to know you are not alone,” he said while highlighting the situation to the media.

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