It's lunch time in Wilmington and every day for hundreds of people; a free hot lunch is a sure thing at the Good Shepherd Ministries center.

Men in work clothes, women in medical scrubs and teens in surfer wear file down the line deciding whether they want peas with their chicken, salad and mac and cheese.

Executive director Katrina Knight started to see a growing number of working families come for lunch about the time the cost of gas and food started to climb.

"A lot of times food is that thing that gets flexed and when their dollar for food doesn't go farther they have to bee more resourceful in taking advantage of a soup kitchen or food pantry to literally survive."

Area grocery stores donate much of the meat served for lunch. But Good Shepherd has to pick it up. Knight's already consolidating trips and she refuses to skimp on meals to balance the budget.

Instead she's working on her fall fundraiser to keep the food coming. But nailing down sponsorships for the party and auction is more difficult this year.

"I think these next few weeks will be the test of whether folks are able to come back to us at the same or reduced level or whether we'll be successful to finding new sponsors to make up the difference."

The local chapter of the United Way also has a big campaign on the horizon. The organization met its $2.3 million goal last year, but is taking the temperature of the local business climate before setting this year's goal.

Across town, the Lower Cape Fear Hospice gets much of its money from donations made by friends and family in honor of a loved one. These donations are still coming in, but Vice President of Development Laurie Taylor says they're smaller.

"Instead of giving $50 for your next door neighbor's mother's death, you might give $25 if you give anything at all right now. And that's a primary source of donations for us, and that's somewhat unfortunately discretionary spending."

Non-profits across the country are finding it more difficult to compete for dollars. The Center on Philanthropy at Indiana University finds most fundraisers in the first part of this year made less than expected.

The Center's Director of research, Patrick Rooney, says people will continue to give to their church and alumni association, but environmental and arts organizations won't fare as well.

"I think what we see with arts orgs is that they have robust growth during the positive parts of the cycle but they tend to drop among most precipitously during a recession b/c viewed as more discretionary."

Rooney's worried that as the economy continues to slow non-profits will stop asking for donations and if not asked, communities will stop giving.

But Lower Cape Fear Hospice's Laurie Taylor says the money's still out there, non-profits just need to tighten their belts, and focus their message.

"I think people are always going to give, I just think it's going to be harder for us to raise the money and as non-profits we need to be sharps and raise our case."

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