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Nonprofits are feeling the pinch of inflation as donations drop and demand for services goes up

The Salvation Army says donations for the year are down about $700,000 compared to last year, but holiday donations are starting to pick up.

ROSEVILLE, Minn. — The sound of the season rings proudly outside Byerly's in Roseville with red kettle season in full swing.

Directors at the Salvation Army say every dollar makes a difference, especially this year.

“Like other nonprofits in the area, we are seeing a decrease in contributions,” Salvation Army Executive Director of Development Paul Deakins said.

Their latest numbers show donations for the year are down about $700,000 compared to last year.

"I think money is tight. People are having to make those decisions on how they spend their discretionary income,” Deakins said.

It's the same story at Second Harvest Heartland, where donations are down, and the need is at record levels.

"We have food shelves that are reporting 50% to 60% increases since the beginning of the year. Some have seen an even bigger tick up in the last few months,” Second Harvest Heartland CEO Allison O’Toole said.

But there is hope before the holidays, the Salvation Army is seeing a boost in donations this month thanks to the warm weather.

"It's not as cold on the hands, so we're having people out there. People tend to be in a better mood and we're seeing that at the kettles,” Deakins said.

They're also testing out a new credit card payment system at 35 of their locations this year where donating takes less than two seconds.

"We are seeing it pick up even over the last few weeks as people are seeing them more and understanding what they are,” Deakins said.

But the hole from the rest of the year will take a lot of holiday giving to fill at a time where people need it the most.

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