United Way Alters Funding to Aid Smaller Programs

The Orange County United Way is redirecting money away from some of the powerhouse nonprofit organizations it has traditionally funded to help finance programs at smaller ones that target specific issues the agency has decided to make priorities.

Although all of the United Way’s traditionally affiliated organizations received some money, for the first time a $2.2-million pool was allocated Tuesday for what the agency designated as “Priority Issues” programs.

The creation of the priority issues pool, which accounts for about one-fifth of the agency’s $10.4-million disbursement this year, is the first step toward an effort to fund specific programs, instead of entire agencies.

Under the Priority Issues umbrella are programs dealing with family violence; child care and development; youth development; families in crisis and homelessness, and community health. The shift in the agency’s funding pattern follows a new determination by the United Way to focus its energies and its limited resources in such a way that an impact will be discernible, the agency said.

Programs in those areas received more Priority Issues money than agencies working to address other issues. From now on, agencies receiving Priority Issues money will be asked to chart the success of their programs and show exactly how United Way money contributed to that success.

“We need to stop being everything to everyone,” Orange County United Way President Maria Chavez-Wilcox said. “Before, we had these dots all over the board--we were funding agencies all over the place, spreading our money everywhere and not really analyzing where the money went.”

Because of the new direction, some of the larger organizations will get less money and some smaller ones addressing the United Way’s priorities will get more.

None of the agencies that received less funding, however, should be surprised, Chavez-Wilcox said. “We communicated to them a year ago that this would happen; it’s a philosophical shift that’s been coming for some time. But it can still be hard for them to take.”

The Priority Issues funding involved five years of planning, required more than 200 volunteers, focus groups, community panels and 2,000 hours to read and assess the applications. Almost 300 agencies applied for the $2.2 million, and the United Way funded 82 grants targeted to specific programs. Some organizations that received traditional funding from $10.4-million general fund also received money from the $2.2-million pool.

Over the next few years, the United Way probably will shift more of its money from the general fund to the Priority Issues pool.

Although United Way money makes up no more than 10% of an agency’s funding, the dollar amount can make a real difference in what a nonprofit agency is able to accomplish.

At the Orangewood Children’s Foundation, news that the United Way had awarded its peer counseling program $50,000--the first money the organization has ever received from the United Way--thrilled officials, who say their program now will reach more teens.

“It was wonderful news, it was just great,” foundation Executive Director Gene Howard said. “What it’s really going to do is allow us to expand our peer counseling program to meet the needs of not only the children in Orangewood, but hopefully be able to help kids in group homes.”

The program involves former residents of Orangewood, the county’s shelter for abused and neglected children, returning to lead discussion groups with the youths residing there. The group sessions now will be held every Saturday rather than every other Saturday, Howard said.

At the Orange County chapter of the American Red Cross--the nonprofit organization that received the largest United Way grant but also suffered the largest cut in funding--officials said the reduction meant they would have to increase their fund-raising.

Last year, the Red Cross received $730,000 from the United Way and next year it is slated to receive $521,038, Red Cross spokeswoman Judy Iannaccone said.

“This isn’t something that’s just happened this year, it’s a sign of the times; it’s the economy,” Iannaccone said.

“We’re still very appreciative of the United Way of Orange County,” she said. “After all, we’re still the single largest recipient and we do understand their concern with smaller agencies. But this means we really are depending on the community to donate and to be generous.”