2009 has been a tough year for non profits and charities all over the United States. And unfortunately, the traditional year-end bump that most receive will not likely happen this year.

As the economy sputters back to life, unemployment is higher than ever—and wallets are snapping shut. Doing without is the new trend, and giving to charities is just not possible for countless Americans.  For those whose incomes have been slashed and are out of work, the incentive of a tax deduction for charitable giving is not at all important.

Giving to a charity as an alternative to buying a gift is not as widespread as last year. A new report commissioned by World Vision says that only 38% of Americans are more likely to give to charity as a gift to another this year—in 2008, that figure was 49%.

Practicality has replaced philanthropy, as holiday gift-givers focus on providing treats to those who have done without them all year, or on giving basic necessities to friends and family who have not been able to afford them.

The good news is that most of those surveyed  for the report plan to increase giving when they can—a full 74% said “yes” when asked if they would increase charitable contributions when the economy improves.

In this economic downturn, non profits have experienced a double-whammy: the need for their services has increased while donors’ ability to give has been significantly cut. The same number of people are donating to charity, but they are giving fewer dollars. Even the nation’s most successful charities expect a 9% decline in income for 2009.  The American Heart Association ended its fiscal year on June 30 with donations down by almost 12%.

Luckily, the AHA saw an increase in both  the number of individual donors and the number of volunteers—a sign that folks still want to help, even if they can only give small amounts of cash or their time.