United Way of the Wabash Valley reduces funds to distribute

"We had considerably less overall dollars to allocate to agencies," said Richard Payonk, United Way executive director. In 2017, $735,394 is available for distribution, while last year, it was "closer to $1 million."

A major reason, he said, is that annual campaign workplace giving — both corporate and employee — declined for about five years, from 2010 to 2015.

"In 2016, we redoubled efforts, but it increased only slightly," he said.

With that decline, United Way tried to maintain agency funding by using reserves, but "similar to any nonprofit, we can only let the reserves go so far," Payonk said. This year, United Way could no longer dip into reserves to help fund programs.

Last year, United Way funded 58 programs. For 2017, four will not be funded beyond the first quarter. Of 54 programs that will be funded, 46 will see a decrease, five will remain the same and three will see a small increase. United Way has 29 member agencies, and some have multiple programs.

Agencies were notified earlier this month, Payonk said. Also, he met with agency executive directors and board presidents to discuss historical funding amounts, efforts to improve fundraising "and the fact that this would be a difficult year." 

He declined to provide details about how individual programs were affected. 

"We don't share agencies we fund or do not fund, in fairness to them," he said. "We keep those communications between us and the agency. Individual agencies are free to discuss that information, if they choose. 

United Way plans to focus on resource development and improve workplace fund drives "so we can fund many really great programs. It's a really difficult year for our volunteers," he said. "I feel badly for any program we can't fund, especially when they are trying to do good."

In determining funding levels, teams of trained volunteers evaluate programs, their results, dollars per unit of service and the strength of its board and governance. The chairs and co-chairs of those volunteer teams then review recommendations to make sure teams are using the same criteria and "equitably putting resources into the best programs," he said.

Final recommendations are presented to the United Way board of directors, which takes final action. 

In January, United Way announced that it had raised about $1.6 million in its annual campaign. Only part of that is available to member agency programs, which are primarily funded through workplace fund drives, Payonk said. 

That funding total also includes grants and sponsorships that go toward specific United Way initiatives, including Healthier by 2020, the Mobile Market and Success by 6. "That funding is not available to fund member agency programs," Payonk said. For example, the Power of the Purse fundraiser is designated to Success by 6, which promotes literacy among young children.

One program that won't be funded after the first quarter, when allocations are determined, is through Alternatives for Living and Learning, a United Way agency, which provides a nursery for parenting students who attend Booker T. Washington High School. The program provides child care and allows those high school students to finish their education. 

Alternatives for Living and Learning received $50,000 last year, Payonk confirmed. It is receiving $12,000 for the first quarter of 2017, while allocations were being determined.

Christi Fenton, Vigo County School Corp. director of elementary education, recently informed the school board that the program is losing its United Way funding. The district is looking at other options to fund the nursery, she said.

The agency can re-apply for funding in 2018, Payonk said. While he declined to say why ALL will not receive additional funding this year, programs do receive feedback and comments from the review teams.

The intent of the allocations process is to "invest in the highest quality programs producing the biggest impact in our community," he said.

"ALL is doing great work," Payonk said.

Another agency hit by funding cuts is the Area 7 Agency on Aging. Programs affected are the McMillan Adult Day Service and senior/disabled/rural transportation in Vigo County, said Ron Hinsenkamp, executive director of West Central Indiana Economic Development District.

"We are looking at options ... it is our intent to come up with with other funding streams to offset the reduction we took so we won't have to reduce services," Hinsenkamp said.

CASY, or Chances and Services for Youth, has three programs that receive United Way funding. One of them, Big Brothers, Big Sisters, did see a reduction. Funding remains the same for a child care resource/referral program and another related to after school/summer programs.

Big Brothers Big Sisters is taking about a $7,000 cut this year. Brandon Halleck, CASY chief operating officer, doesn't anticipate a major impact. "We'll tighten up the program and budget and look for resources elsewhere" through fundraising or grants. 

Myra Wilkey, of Mental Health America of Vigo County, said four programs were affected and funding is being reduced by about $18,000; the agency will still receive $30,033 in United Way funding. Mental Health America has hired a development director and "we are trying to become more financially independent, Wilkey said.