Economic pressures -- fuel prices, food costs, inflation and a bear market -- are dipping into charitable donations. An Associated Press story, published last week in The Salem News and elsewhere, cited a survey by the philanthropic group Giving USA that found a number of nonprofit groups are bracing for a drop in contributions this year.

Less giving forces nonprofits to make hard decisions, usually as more people are lining up outside their doors. Carol DeVita, a researcher at The Urban Institute, a Washington, D.C. social policy think tank, told the Tallahassee Democrat economic slumps often deliver charities a one-two punch. "The demand for their services tends to increase," she said, "and at the same time, they may experience some downturn in giving, so they have less resources to address an increasing need."

Rising costs and fewer donations are also shrinking hometown fairs and festivals, many of which are organized by nonprofits, reports AP's Emily Fredrix. Economic conditions, in some cases, are canceling these events altogether.

The other day I wrote about how nonprofit groups are growing in political stature as sources of soft money in campaigns. Of course, that is just a small slice of the story of how nonprofit groups influence our communities.

Nonprofit news is a staple of most community papers in the form of listings for services or photos of smiling volunteers next to people thankful for a group's assistance. More rare is coverage of how much these groups collect and how they spend their money. Yet most communities have dozens of nonprofit groups that which collectively raise millions for what may be critical projects and services.

Story Ideas

Nonprofit groups are a font of stories, and not just obvious ones about increasing demand for services.

Take the economic angle, for example. Fewer resources force nonprofit groups to cut into their reserves -- which often don't exist -- or cut services. Disappearing services and programs have human consequences. Which ones face elimination where you live?

Here are other story ideas:

Efficiency: A frequent and important exercise is to find out how much local groups spend on overhead (fundraising and administrative costs) versus how much they devote to services (program costs.) Nonprofit groups must report spending in these categories in the financial statements they file annually with the Internal Revenue Service -- Form 990s.

The ratio of overhead to overall expenses is a common benchmark of a group's efficiency. Consumer advocates say charities generally should spend no more than 25 percent on overhead expenses.

Perks and Pay: It's a safe bet most people who work for nonprofits aren't getting rich. Yet charities don't always require a vow of poverty, and you may be surprised at the perks and pay directors are getting.

Nonprofit groups report top employees' salaries and benefits to the IRS, as well. Look up the people running the largest nonprofit groups in your community. How does their compensation compare to that of other professionals with similar responsibilities?

The PTA: Some parent groups are big fundraisers and therefore important arbiters of what programs will and won't happen in their schools. Poynter's Al Tompkins noted a few months ago that PTAs in Orange County, Calif., are raising money to save teachers' jobs.

Tompkins suggested an intriguing story: Compare how much PTAs or similar parent groups raise at schools in your community. In most cases, each of these groups file 990s with the IRS. See if their fundraising somehow predicts standardized test scores or the number of kids who go on to college.

Booster Clubs: These groups are PTAs of a different stripe, and many athletic and after-school programs would not exist without their support. Yet they often operate independently of school officials, making their own decisions about how money is raised and spent.

The Edmond Sun's Patty Miller reported in depth last summer on the booster clubs in her community after school officials discovered several incidents of mismanagement. She got club records from the school district and also used Form 990s to find key details about how the groups operate. Some boosters, for example, were paying coaches to hold camps and clinics during the summer. Boosters were also doling out free meals and other perks to coaches.

Resources

The 990s you need to get started are readily available. In some instances, groups also must report financials to state officials who regulate public charities.

• At the risk of becoming a broken record, GuideStar.org has a handy online tool that allows you to search for any nonprofit group and get its financial statements. Simple GuideStar searches are free, along with three years' worth of 990s for any group. Or you can get a subscription -- $40 for five days -- that delivers more documents and analysis about how nonprofit groups are performing.
• The Urban Institute's National Center for Charitable Statistics compiles data including the number of nonprofit groups operating in each state. Search its Web site to find all nonprofits registered with the IRS in your state, as well as recent Form 990s.
• The Foundation Center is another ready source of information about charities, with a free online search and a free database of Form 990s. The center compiles reports about which charities raise and spend money in each state. A quick search will yield the top givers and recipients where you live.