Allied Arts of Greater Chattanooga is $500,000 short of its $1.3 million goal heading into the final weeks of the campaign.

The agency, which raises and facilitates funds for area arts organizations, is urging past donors to pledge and is looking for new donors as well, said Campaign Chairman Charlie Brock.

“The good news is that we have seen many new givers and increased giving by longtime supporters,” Mr. Brock said. “However, we have also seen the effects of the economic downturn and some of our loyal donors have not been able to renew their commitments at last year’s levels.”

The campaign has raised almost $800,000 so far from individuals and corporations, Mr. Brock said, but it would be a challenge to meet the organization’s overall $2.1 million goal, which includes government and foundation funding.

Allied Arts already has trimmed its operating budget, and officials are concerned it may have to reduce next year’s allocations to 16 partner agencies and arts education programs in Hamilton County Schools.

“As we wrap up the campaign, we will have a better handle on what budget cuts may have to be made,” Allied Arts President Dan Bowers said. “Our goal has been to have most of our donor commitments in by late May or early June. Then we should be able to determine our budget for the coming year.”

Allied Arts’ fiscal year begins July 1.

The fundraising campaign began in February, and the agency will continue to solicit gifts until June 30, according to a news release.

Allied Arts is experiencing many of the same challenges being faced by other arts groups around the country, according to board Chairman Nick Decosimo.

“Everyone has been impacted by the economy,” Mr. Decosimo said. “There is no reason to believe we would not be impacted as well. Charlie Brock and his team of volunteers have been very active. We are gratified by the incredible involvement from large numbers of donors who have also asked others to join them to give as well.”

Mr. Brock said campaign organizers still are hopeful.

“However, it is important for us to be realistic as well as we approach our new fiscal year in July,” he said.

The program is unique and benefits Chattanooga, Mr. Brock said.

“Contributions will come back to us tenfold as we continue to maintain and improve our quality of life in our community,” he said.