понедельник, 24 сентября 2012 г.

TOUGH TIMES TEST UNITED WAY - The State Journal

These days, West Virginia's United Ways are building stronger communities with a little less cash in the bank.

Each United Way raises money for select charities and other agencies to benefit its local communities. United Ways have provided funding for Boy Scouts of America, American Red Cross, the Salvation Army and other organizations. They often provide health care coverage for indigents and lowincome families. And each United Way is independent, separately incorporated and governed by local volunteers.

West Virginia has 23 United Ways. But a tight and turbulent economy has taken its toll on local fund-raising efforts. Donations and other contributions have steadily declined in recent years, leaving the state's United Ways looking for new and innovative methods to raise funds during their annual campaigns. But making up for lost contributions from Weirton Steel or Flexsys is not always easy

Weirton

During its most recent fund-raising campaign, Weirton United Way fell short of its $315,000 goal, raising only $258,000. But one doesn't need to look far to see why - Weirton Steel declared bankruptcy last year. In the past, Weirton Steel made an annual corporate pledge of about $20,000 and then some.

'The company always sponsored any event or fund-raiser we had. But it's not just that,' said Cheryl Costello, financial officer for the Weirton United Way. 'The company had a special events committee to come up with their own fundraisers in addition to our own. So aside from their $20,000 pledge, they usually raised another $24,000 for us.'

But Weirton Steel's contribution didn't end there. Employees of the steel mill also made annual contributions. In spite of the bankruptcy filing, Weirton Steel employees contributed $28,000 this year, but even that is a 20 percent reduction from previous years.

The Weirton United Way also lost contributions from Weirton Steel contractors and suppliers and Weirton Steel retirees. In the past, contractors and suppliers contributed about $40,000. This year, they gave about $10,000. As for retirees, the United Way didn't even send donor brochures to them because they are dealing with reduced pensions and paying for their own health care benefits.

'The retirees were wonderful givers in the past, and we felt we could show our appreciation for all their generosity by not asking for any more. These are tough times for them.' Costello said.

In the past, retirees contributed about $13,000. During the latest campaign, they contributed $500.

All in all, Weirton United Way lost more than $90,000 in annual contributions for its 2003-2004 campaign.

'It's just the trickle-down effect. Everybody around here reacts to the steel mill, ' Costello said. 'We're in the process of determining our goal, and I can see it coming down quite a bit from previous years. Last year we had 19 agencies that we gave money to. We had one drop out because of a lack of funding, so now we're down to 18. It's just a sign of the times.'

While Weirton's situation may be the extreme, other local United Ways are feeling the crunch of a tight economy.

Upper Ohio Valley

The United Way of the Upper Ohio Valley, which includes Wheeling, fell short of its $795,000 goal, raising $718,570. Wheeling-Pittsburgh Steel, a significant contributor in the past, was under bankruptcy protection during the United Way's 2003-2004 campaign. Also, with the medical malpractice insurance debate under way in West Virginia, a noticeable number of doctors have left the state. In the past, physicians have been significant contributors to local United Ways.

'I don't want to point fingers or single out anybody,' said Jeff Knierim, executive director of the United Way of the Upper Ohio Valley. 'I don't think we should be singling out one company or one group. The overall economy in this area created a flat campaign.'

But the numbers may not be as bad as they seem. The United Way of the Upper Ohio Valley did reach 91 percent of its goal and actually surpassed the previous year's totals. Knierim said an expansion at Wheeling Island Racetrack and Gaming Center gave the campaign a boost. The United Way runs an employee contribution campaign at the racetrack, and this year's new hires meant more people were on staff to make contributions.

Mid-Ohio Valley

The United Way of the Mid-Ohio Valley, which includes Parkersburg, fell short of its $575,000 goal, raising $490,000 during its 2003-2004 campaign. In previous years, the campaign ran through May or June, but this year the United Way decided to end its campaign in April. The United Way ended the campaign early to give more time for the annual audit, but losing two months did hurt fund-raising efforts, said Joyce Mather, president of the United Way.

But two months of fund-raising isn't all the Mid-Ohio Valley United Way lost. Just as the United Way was kicking off its campaign in October, Schott Glass announced plans to close its plant in Parkersburg. While the plant won't actually close until later this year, the company and its employees did not make any contributions to the United Way's 2003-2004 campaign. The United Way also lost corporate and employee contributions from Big Bear. The retail grocery chain closed most of its stores in West Virginia last year. The closures, combined with a number of layoff announcements that included DuPont, took a toll on the local United Way.

'You always expect to have some contributors that will decrease donations, but this year seemed to be especially tough,' Mather said.

Central West Virginia

The United Way of Central West Virginia, which includes Charleston. fell short of its $3.25 million goal, raising $2.6 million for the 2003-2004 campaign.

The United Way did receive $173,350 from 43 companies that never donated before and 20 companies that had not made contributions in recent years. But those contributions did not make up for the 95 companies that decreased their donations by $469,242. Another 70 companies that participated in the United Way campaigns in the past opted not to make donations during the most recent campaign.

In the middle of the 2003-2004 Central West Virginia campaign, Flexsys, a chemical plant in South Charleston, announced it would close operations. The company made one final corporate contribution before shutting its doors, but that money won't be around next year.

'You just can't expect to raise the same amount of money from year to year when you're losing major employers,' said Paul Gilmer, interim director of the United Way of Central West Virginia. 'You can't just replace a Flexsys. But the sad thing is that these people losing their jobs may be coming to us for help down the road. That means we're having to help more people with less, and that's not an easy thing to do.'

As companies close, new ones are moving in but they are not providing the same kind of jobs. West Virginia's economy is slowly shifting from manufacturing to the service industry.

'That means more people are employed in lower paying jobs with no benefits,' Gilmer said. 'Those people don't have the means to contribute. Sometimes those people come to us for health care, meaning an even greater strain on our services.'

As times change, Gilmer said United Ways need to shift focus. For years, the emphasis has been on money.

'Next year I don't think we should even say how much money we raise. I think we should be talking about how many people we help with that money,' Gilmer said. 'For far too long we've been putting money up front. It's time we start talking about the people.'

For the United Way of Central West Virginia, 157,000 services were rendered using United Way funds last year. Gilmer said that is a much more important number than the $3.25 million campaign goal.

River Cities

But it's not all bad news. Major restructuring at Special Metals in Huntington meant the United Way of the River Cities did not receive its annual contribution from the nickel alloy manufacturer. Traditionally that has been Huntington's biggest supporter, but the United Way managed to reach its $1.65 million anyway.

'We actually would have been stuck at 98 percent of our goal, but at the last minute a foundation in New York made a $50,000 donation in honor of a former Huntington resident,' said Kheng YapMcGuire, executive director of the United Way in Huntington. 'If not for that, we would have been like most of the other United Ways. It has been a tough year.'

Just like others, the United Way of the River Cities was impacted by the closure of Big Bear stores and the Kroger strike, which resulted in decreased donations from the Ohiobased grocery chain.

While each United Way has many success stories, the most recent campaigns prove that even non-profits can fall victim to a recession. The McDowell County United Way didn't even run a campaign this year. The local United Way folded after failing to raise significant funds during the 2002-2003 campaign.