BANGOR, Maine — The United Way of Eastern Maine announced on Thursday plans to cut financial support for local nonprofits and social service organizations because of dwindling financial resources.
The United Way last week notified the groups it works with that their funding allocations for 2014-15 would be cut by about 2.5 percent, or $20,000. The 2015-16 allocations could be cut by 25-35 percent, more than $200,000, if the organization can’t raise $200,000-$300,000 between now and June 30, the organization cautions.
United Way provides grant funding to health and human services programs across Hancock, Penobscot, Piscataquis, Waldo and Washington counties. It serves as a vehicle to raise funding and distributes it among nonprofits and community services, reducing the need for those agencies to compete among themselves for limited grants. Regular recipients include the Bangor Y, Bangor Area Homeless Shelter, Spruce Run and Bangor Literacy Volunteers.
The organization raises much of its funding through “workplace campaigns,” seeking contributions from employees of large employers across the region.
Since the recession of 2008, its traditional fundraising campaigns have yielded diminishing returns, according to Adam Lacher, director of community engagement for United Way. As more major area companies and employers have struggled with their own finances, so have their employees.
The organization dipped into its reserve funds in past years in order to maintain its ability to support other agencies.
“We had hoped our traditional workplace campaigns would rebound as we distanced ourselves from the recession, but they have not,” Lacher said. “It is not prudent for us to use our reserves at this rate any longer.”
United Way recently lost two major contributors when the the Verso Paper mill in Bucksport shuttered and L.L. Bean’s Bangor call center announced its plans to close. Together those companies contributed about $130,000 per year, according to Lacher.
Lacher said the organization has tried internal cuts to shore up its finances, cutting staff down from 15 to 11½, freezing hires, relying more on volunteers, and halting investments in “innovation” and new programs, but financial problems persist.
In an effort to right the ship, United Way is reaching out to smaller businesses, especially in the downtown area, in an effort it’s calling the 100 Club. The organization is asking for donations from businesses it’s never reached out to before, according to Lacher.
Emera Maine has offered to match up to $10,000 of the funds raised through this program.
United Way is taking these other steps as well:
— It is building on existing relationships with workplace campaign companies and seeking out new campaign participants.
— A Big Night Experience fundraising event will be held, where United Way will auction off police ride-alongs, skydiving packages, Disney trips and other big-ticket items.
— It will seek grants to help support its efforts to support other agencies.
— It will build its endowment and planned giving campaign.
— It will improve fundraising capabilities on United Way’s website, as well as social media sites.
In the meantime, United Way is seeking donations, which can be made at www.unitedwayem.org, in workplace campaigns or at one of the upcoming events.
Follow Nick McCrea on Twitter at @nmccrea213.