In a concerning trend for the philanthropic sector, more than two-fifths of charitable non-profit organizations in the Czech Republic are witnessing a drop in donations this year, posing significant challenges to their ability to fund crucial programs and initiatives. Last year saw a commendable surge in generosity, with donors contributing a substantial 15.4 billion crowns to support individuals with disabilities and those in need—an increase of 3.5 billion crowns from the previous year. However, the current year presents a less optimistic outlook, particularly in the regional context.

These donations are lifelines for charitable organizations, constituting their primary sources of financing, as highlighted by Klára Šplíchalová of the Donor Forum. Drawing on data from the General Financial Directorate, Šplíchalová underscores the pivotal role of these contributions in sustaining the impactful work undertaken by these organizations.

The decline in donations this year is attributed to a combination of factors, with high inflation and a dip in real wages at the forefront. Šplíchalová notes that one-third of donors anticipate being less generous in the coming year, with this trend more pronounced among individuals over 60 and those with household incomes up to 30,000 crowns. The concern, she points out, is rooted in the fear of navigating the challenging economic landscape.

Iva Kuchyňková from Charity CR echoes these sentiments, noting that even when donors give slightly more, the impact is mitigated by the eroding value of gifts due to inflation. As organizations gear up for collections, such as the upcoming Epiphany collection, the tangible impact of inflation on the real value of donations becomes increasingly evident.

Monika Jindrová, the director of the Association of Public Benefit Organizations, shares the collective concern within the sector. Acknowledging that certain organizations are grappling with financial challenges, Jindrová emphasizes that this could potentially lead to a domino effect, impacting personnel costs and subsequently curtailing the services provided to households in need. The economic strain on charitable organizations highlights the need for concerted efforts to address the root causes and safeguard the crucial work undertaken by these entities in supporting vulnerable communities.

Article by Prague Forum