Bangkok Post - January 1, 2009
Surasak Glahan

During the tom yum kung financial crisis in 1997, Rajani Dhongchai, who co-ran the non-profit Foundation for Children, was forced to make an especially difficult decision: some of the children under her care would have to sacrifice their studies for the well-being of younger ones needing help.

"Like any mother having to tell her children to put a hold on their education, it was painful," Mrs Rajani said. "I told eight high school children that financial support for their college studies was suspended. Some left school while others sought work to pay for their studies."

The foundation which raises funds from donors to provide scholarships, meals and board for hundreds of disadvantaged children, was hit hard by the crisis as donations fell by up to 30%, which continued for a few more years.

It had to be frugal on such things as meals, while staff were asked to give part of their salaries to the foundation.

Next year, it is likely to go through similar painful times from the Hamburger crisis which started in the United States and has now spread worldwide. The foundation is prepared for another 1997 frugality plan.

"The crisis could hit us harder than in 1997, and we are prepared to tighten our belts as well as put on hold college scholarships for some children," Mrs Rajani said.

"With unemployment up, increased redundancies and retail spending down, individuals' disposable income is less likely to come to charities," Alec Leggat of the London-based Salvation Army International said.

In the short term, small organisations are the first to be affected because they mostly raise money from individuals.

Gawin Chutina, deputy director of Thai Fund Foundation, said agencies for children were most exposed as individuals contributed half of their funding.

Nualnoi Timkul, who runs Baan Kru Noi, a charity providing housing and education for 85 children, said there had been a drastic decline in donations this year.

"Individual donors who used to donate 1,000 baht a month now commit just a few hundred," she said.

Big and established charities with fundraising expertise can weather the crisis better than smaller ones. Agencies such as Oxfam choose to cut costs on support functions rather than spending which goes directly to needy people.

Not even the big agencies can stay untouched by the crisis. The well-supported Rak Thai Foundation, which works nationwide with vulnerable groups including people with HIV/Aids, migrant workers and drug users, is worried.

Executive director Promboon Panitchpakdi said Rak Thai is experiencing a slowdown in funding.

While the reduced income will force non-profit groups to cut costs or stop expanding programmes, the number of people needing help is likely to grow because of rising unemployment.

Chusak Wuthiwaropas, executive director of World Vision Foundation in Thailand which sponsors about 125,000 children, said the number of children needing care would rise.

The government should be prepared to step in if things get much worse, he said.

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