EmailEmail
PrintPrint
United Way forcing agencies to compete to get full funding
Wednesday, July 02, 2008

Of the 84 human service agencies that applied for United Way youth program funds this year, 11 have been selected to receive monies -- leaving the remaining agencies to make do with less funding and position themselves for the next application process in January.

United Way of Allegheny County's new competitive application process, announced in December, has raised the bar for human service agencies that apply for funding from the organization. The first grants for youth agencies will be announced today.

In addition to demonstrating sound fiscal management, appropriate governance and programming strength, partner agencies must now show they are delivering measurable results to a specific community group in critical need.

"We've added an even higher standard which is, 'Show us the results,'" said Robert Nelkin, United Way's president and chief professional officer.

The agencies selected for funding this year are: ACTION Housing ($37,500), Boys & Girls Clubs of Western Pa. ($150,000), Catholic Charities ($75,000), East Liberty Family Health Care Center ($37,500), Hill House Association ($93,750), Human Services Center Corp. ($75,000), Life's Work of Western Pa. (112,500), The Program for Offenders ($75,000), Three Rivers Youth, Wireless Neighborhoods ($150,000) and YouthPlaces ($135,000).

The competitive funding process will be phased in gradually to ensure that no partner agency loses total United Way funding overnight. Next year, the pot of money available for competitive funding will grow as less money is given noncompetitively to partner agencies.

The partner agencies that did not make the cut will lose about one-third of their funding from United Way for youth services this fiscal year. If they aren't chosen next year, they will lose two-thirds of their funding. By 2010, they could lose it all, if not selected.

For the 2010-11 fiscal year, all money will be given out on a competitive basis. At that time, Mr. Nelkin anticipates there will be about 70 to 75 partner agencies, up from about 60 currently.

Inevitably, some current partner agencies might lose that designation and be replaced by new organizations, Mr. Nelkin said.

The Urban League of Greater Pittsburgh will lose about $21,000 in funding from United Way this year, said the agency's president and chief executive officer, Esther Bush. The organization made it to the final 15 in the competition this year but did not make the final cut.

Though she's aware that her agency's funding from United Way could continue to shrink over the next two years, Ms. Bush is confident the Urban League can make the necessary changes to remain a partner agency.

"I'm not saying this is easy at all," she said. "But I am saying that ... you have to strategically shift gears and put a plan in place that's going to work. In the end, it's about how many constituents are receiving the services they need."

The difficult part, she said, is making improvements while funding gradually shrinks.

"We are very interested in helping our partner agencies succeed in the competition," Mr. Nelkin said, noting that United Way has offered training programs to help organizations better understand United Way's new standards and the best way to meet them. The organization has sent aside $150,000 for training and technical assistance for agencies, Mr. Nelkin said.

Mr. Nelkin said he has heard from agencies who are disappointed with the new approach. But, he said, a competitive grant process is not new for human service agencies.

"They often have to compete for government funds or foundation funds," he said.

"We are not entitled to the funding," said Walter Smith, executive director of Family Resources, a Pittsburgh-based charity that works to prevent child abuse and to heal abuse victims. Family Resources was not selected for funding this year.

"It's not like we take the position, 'This is ours,' " he said. "These are public dollars we are glad to get, and sorry to lose. But because we believe in our cause we are going to fight harder for them."

The application process will begin for organizations that address the needs of vulnerable seniors and adults with disabilities in July. In January, United Way will accept proposals from organizations that help financially struggling families and individuals, as well as the second round of applications for youth programming grants.

Mary Kate Malone can be reached at mmalone@post-gazette.com or 412-263-3858.
First published on July 2, 2008 at 12:00 am
Featured Homes
Featured Rentals