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United Way agencies get less funding

By Jessica Groover | Independent Tribune

Published: June 27, 2009

Several Cabarrus County agencies that receive funding from United Way said they expected lower allocations this year and support the volunteers who had to make the tough decisions.

"I've known for months what the situation was," said Floyd Davis, president and CEO of Community Link, a United Way agency that helps people find long-term housing. "I think the volunteers made the best decisions they had to make. Did I wish we came out better in Cabarrus County? Absolutely."

This week, the regional board of directors of United Way of Central Carolinas approved the distribution of funds to local agencies. Cabarrus County agencies received 36 percent less funding, or $671,000, for the 2009-10 year compared to last year.

"The big reduction is due to three things," said Ed Runte, United Way's vice president for the Cabarrus County office. "One is the economic downturn. (The) second are the problems in the financial industries. (The) third, is our self-inflicted public relations wounds related to the Gloria Pace King story."

In January, Runte projected the Cabarrus County United Way would raise $800,000 this year, a 24 percent reduction from last year. At the time, he cited the economy and scrutiny of the United Way of Central Carolinas for the compensation package its former CEO, King, received.

At the end of the fundraising campaign, Cabarrus County United Way raised more than $732,000 and was allocated $1.18 million. While other United Way offices in counties such as Anson and Mecklenburg received less in allocation funds than they raised, Cabarrus County received $448,000 more.

"When you look at it from this perspective, we clearly get the best deal in terms of our relationship with United Way of Central Carolinas," Runte said. "The amount of money we get reflects the Cabarrus commuters (who work in Mecklenburg and live in Cabarrus) and our significant economic challenges."

Four Community Investment Councils of trained volunteers recommend what portion of that money each agency receives. Runte said most of the volunteers on the Cabarrus County councils have been doing this for five to 10 years and are familiar with the local agencies.

The councils receive a proposal from the agencies, sometimes make a visit, listen to a presentation by the agency and then deliberate.

This year, all agencies received less funding, with some around 11 percent less and others as high as 76 percent less.

"The primary driver that (the council members) had to ask themselves was who the most critical was in terms of the impact on the clients," Runte said.

Factors in the decision-making process were the number of clients served, the impact reductions would have on clients and how much of the agency's budget is funded by United Way.

Cannon Memorial YMCA Aquatics received a cut of 72.5 percent in funding this year, whereas 12 percent less was allocated to Cabarrus Meals on Wheels, compared to last year.

For some agencies, such as Habitat for Humanity Cabarrus, United Way funding accounts for less than 10 percent of their overall budget, so it will be easier to fill the gap in funding, but for others, programs may have to be cut.

Greg Graham, scout executive for the Boy Scouts of America Central NC Council Cabarrus, said he was concerned about certain programs.

"We've got to raise dollars to support those programs," Graham said. "Having to raise fees for our participants is a possibility, but that's a last resort."

United Way agencies said they knew there was going to be less money and that the volunteers on the councils had tough decisions to make.

"I agree with what (the councils) did, even though we took the 42 percent hit," said Dean Johnson, executive director of Habitat for Humanity Cabarrus. "They did the right thing with how they prioritized it."

Agencies also agreed that they would need to improve their own fundraising to make up for lack of United Way funds.

"The charitable pie is shrinking, and I believe the strong not-for-profits are the ones who can generate their own revenue in line with their purpose and mission," Davis said.