United Way cuts back allocations

The Catawba County United Way is seeing a drop in its campaign totals, forcing the agency to cut funding to some area nonprofits.

A United Way official said Monday that the drop in donations is the result of fewer businesses' employees giving donations. The United Way relies on workers at various businesses around the county for financial support.

"Right now, the unemployment rate is 15.6. Those are our donors who are not working," said Jennie Connor, executive director of the agency. "And if it's not the donor (out of work), it's a family member or there's just that uncertainty."

Connor said the agency is using an estimate, lower than the $1.5 million last year's campaign brought in, to estimate how much various nonprofit agencies will receive this year. The United Way Board heard presentations during the last few weeks from agencies wanting money and rearranged their priorities to focus on essential needs, such as food, shelter and clothing.

Connor declined to discuss how much money the United Way has raised so far this year or how much they need to meet their goal of $1.5 million.

Cheryl Abee, director of the agency's Volunteer Center and Information and Referral services, said the agency's campaigns run from August to January each year.

In August, the local unemployment rate was 8 percent, not a good rate, but lower than the current rate, edging closer to 16 percent. Then there's the estimation of donations promised, but not given, which could be higher this year due to donors losing their jobs between campaigns and payment time.

"We've always had a really low uncollectible rate. It's always run around 5 percent," Abee said. "We're expecting closer to 15 percent this year."

Connor said agencies such as the American Red Cross and the Salvation Army that supply food, clothing and shelter were given priority this year.

"We looked at how does that program fit with certain needs," she said. "They are all good programs and we would like to fund all of them, but right now we have to look at critical life needs."

Of 22 agencies funded last year, seven are not receiving any money this year. Most of these agencies are not United Way member agencies and do not depend on the United Way money to operate.

Those agencies are AIDS Leadership Foothills Area Alliance, or ALFA; Crisis Intervention Response System; Flynn Christian Home; Greater Hickory Cooperative Christian Ministry; Kids in Need; Southmountain Home and The Parenting Network.

Susan Lee, director of the Parenting Network, said her agency is given money from any left over after member agencies are funded. The money from United Way is never figured into the budget until it comes through, she said.

"The only difference it may make is we may not be able to fund as many programs for children over 5," she said.

Five agencies are getting a lower percentage of money than they received last year, but 10 are receiving more.

Adult Life Programs, the American Red Cross, Exodus Homes and the Salvation Army are among the agencies planned for a larger percentage of the money allocated for funded agencies.

The last campaign raised about $1.5 million, short of its $1.9 million goal. That shortfall was made up with a reserve fund, a move approved by the United Way board of directors.

Connor said she doesn't think this year's decrease in giving is due to problems experienced by the Mecklenburg County United Way, although she's afraid some people have lumped the two agencies together. In answer, the agency has members giving presentations asking for donations to address that confusion and clear it up.

"People who historically have given to us, they sought out information (about any connections between the two agencies)," Connor said. "I feel like it has made a difference that we got out there and spoke to it."