BY EMILY MONACELLI, Truth Staff
emonacelli@etruth.com
ELKHART -- The agencies that serve as the support net for Elkhart's newly unemployed are feeling the effects of the local economy themselves.
Fewer people working in Elkhart County means fewer people donating their money at workplace campaigns, which make up 60 percent of the United Way of Elkhart County's resources.
United Way announced Thursday that it will cut seven agencies from its funds after the first quarter of 2009.
The seven agencies -- Big Brothers Big Sisters, Center for Community Justice, Elkhart Legal Aid, Girl Scouts, Life Treatment Centers, Mental Health America and YMCA -- were funded for the first quarter of 2009 but will no longer receive funds from United Way, CEO Jerome Quatman said. The United Way of Elkhart County board of directors approved the cuts at a meeting Thursday.
"If people aren't working, then they're not going to be able to raise the money in those workplace campaigns," Quatman said. "Some degree is really affected by what happens with people's employment. We understand that and we see it."
The United Way raised $1.7 million in 2008, about 32 percent less than it has raised in previous years.
First-quarter funding for those seven agencies totaled $37,263.
Of the $1.7 million, more than $93,000 was designated by donors to other nonprofit organizations. United Way estimates 10 percent will not be collected because of job losses.
The remaining 17 agencies still funded by United Way received a 30 percent reduction in funding early this year.
Internally, United Way staff has been reduced, and the 2-1-1 call center has been outsourced.
Remaining staff have seen a 15 percent reduction in benefits and Quatman took a voluntary 12 percent salary reduction.
The decision to determine which agencies would be cut and which wouldn't "was painful," said Richard Paulen, vice president of the board of directors and chairman of community investment. Volunteers with United Way compared the programs with the three areas they had identified as priorities: education, income and health.
The volunteers looked at where they thought United Way could make the most impact now and how it could best use the dollars it raised. Funding for the Salvation Army, for example, did not get cut as much as some other agencies' funding.
"The second piece ... was to look at the change of need in the community, food for example, that occured as a result of a change in the economy," Paulen said. "We've had dramatic changes over the last eight months," Paulen said.
The United Way depends on its volunteers to ask the questions and research these agencies, said Pam Hluchota, chairwoman of the board of directors.
"We dont want anybody to think that this is a reflection on we didn't think this was important anymore," she said. "We just had so many dollars and we had to pick the most critical ones that we could identify."
The United Way still has a core need to fund certain programs, Quatman said.
"We're going to need to fund food pantries and domestic shelters because we know we're not going to affect the total hunger problem in Elkhart County, but we've got to do something. We're not going to stop a domestic violence situation, but we've got to be able to provide some relief to folks as they rebuild their lives."
Quatman said he's still hopeful the agency can make a difference with the 17 programs it will be funding the rest of this year.
He said the United Way is starting to look at changes for this year's campaign, including starting the campaign earlier and trying to attract companies that haven't participated before.
"We're going to do better and we're going to go through this stronger and more focused than we've ever been," he said.
"It's not an easy process, and it doesn't feel good, but it's the right thing for us to do."