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United Way Dips Into Reserves

http://66.225.205.104/JR20110616a.mp3

The United Way of Central Carolinas will draw $2.5 million from its $10 million reserve to make up for a fundraising shortfall. The result is a temporary reprieve for some 90 health and human service nonprofits that rely on United Way in the Charlotte region. Most of the nonprofits are getting exactly what they got last year - down to the dollar. Now that's not exactly good news since last year's grants were a lot less than what nonprofits were getting before the recession. And keep in mind most of these nonprofits are dealing with record demand for their services. Still, Brett Loftis of the Council for Children's Rights says, "most of our other funding streams are in a reduction mode, so having stable funding for the health and human services safety net from the United Way is really incredible." Stability was precisely what the United Way's board hoped to offer its member agencies, but with a strong message not to count on future bailouts from the reserve fund. The United Way annual campaign raised $20.2 million this year. That's $5 million short of last year's number. Executive Director Jane McIntyre says the United Way is at a "tipping point." "We have to reset with this economy," says McIntyre. "How much are we able to raise? There are less people employed. There are less donors that make significant money in Charlotte who were generously supporting us." Over the next several years, McIntyre says some nonprofits may be left off the funding list as the United Way focuses on a more narrow set of priorities - education, health, housing and poverty. The recession's ongoing effect in Charlotte is evident in the top three nonprofit agencies that will actually see a financial boost from the United Way this year - the emergency shelters for men and women and a program for homeless children in public schools.