United Way programs deal with budget cuts

All 78 area programs funded in part by the United Way of Greater Chattanooga will receive less money from the organization this year.

"Everyone had to take a reduction," said Eva Dillard, United Way president and chief executive officer.

Funding for most of the programs will be cut either by 4.5 percent or 9.29 percent, she said.

The United Way's volunteer-led Allocations Oversight Committee tried to limit the cuts even though the amount of undesignated funds collected in the community fundraising campaign fell 10.45 percent from 2008 to 2009, she said.

This is not the first time all United Way-funded programs have had to take a cut, organization officials said, but it is the first time since 2002.

Sandra Hollett, chief executive officer of the Partnership of Families, Children and Adults, said her agency's mission, unlike the economy, is not in recession.

"There is a lot of need," she said.

The Partnership receives more of United Way's undesignated funds, $1,062,285 in 2009, than any other agency, but Mrs. Hollett said the 12 programs for which the agency receives some United Way money averaged a cut of 6 percent.

"United Way has communicated fairly openly with us to prepare us and other nonprofits in town," she said. "We definitely appreciate the support, and we're grateful that the cuts weren't larger."

The local United Way met its 2009 stretch goal of $11.6 million but collected $125,000 less than it did in 2008 and about $300,000 less than it did in 2007, records show.

In addition, designated funds -- contributions that people direct to specific agencies -- have risen $500,000 over the past five years. The more money that is designated, the less there is to spread among the 78 programs in Tennessee and North Georgia, Mrs. Dillard said.

This year's smaller cuts went to agencies most closely involved with the organization's focus areas of Investing in Children, Building Stable Lives and Supporting the Most Vulnerable, she said. The agencies' outcomes addressed United Way goals and showed indications they were making good progress, Mrs. Dillard said.

The agencies with the larger cuts are "involved, at the table and working with us," she said. "They're just not as heavily invested as the others at this point in time."

Funding to United Way direct services -- the internal costs to manage organization initiatives such as United Way 211, the Volunteer Center, Gifts in Kind and the Center for Nonprofits -- was reduced 10.45 percent, Mrs. Dillard said.

Adjustments to allotments to agencies in North Georgia and Marion County are made by separate allocations committees in those areas, she said.

Randy Brown, president and chief executive officer of the YMCA of Metropolitan Chattanooga, said he has sought a meeting with United Way officials about the cuts to his agency. He did not specify how much was cut.

In the meantime, he said, "we're trying to minimize the impact" of the cuts and raise more money in the YMCA's Strong Kids campaign. The dilemma is how to provide the same programming with less money, he said.

The agency's major funding cut from the United Way would eliminate about 100 scholarships for after-school and summer programs in North Georgia, Mr. Brown said.

"I'm a huge fan of the United Way and a supporter," he said. "I know they've got some tough decisions to make. We just wanted to have an opportunity to sit down and understand the cuts. And maybe we need to be finding a better way of reporting, because there's no doubt we have a huge impact on the community."

The Partnership has been reducing its expenses and diversifying its funding sources for some time, Mrs. Hollett said. However, she said the anticipated cuts likely will force a reduction in expenses and services in some programs.

"Our resources were limited even without the cuts, but our intention is to remain relevant and resilient in the community," she said.

The agency's Consumer Credit Counseling Services received a 4.5 percent cut, indicative of the organization's recognition of how important that program is, Mrs. Hollett said.

"That's intelligence I appreciate," she said.

Rachel Gammon, executive director of the Northside Neighborhood House, said her agency received a 4.5 percent cut in allocations.

She said requests for food and utilities assistance have increased, and her board has made the decision not to cut services, so "we have to find other revenues to supplement that income. We have to stretch our dollars we do have."