THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: WEDNESDAY, June 15, 1994 TAG: 9406150455
SECTION: LOCAL PAGE: B4 EDITION: FINAL
SOURCE: BY JEFF HOOTEN, STAFF WRITER
DATELINE: 940615 LENGTH: NORFOLK
United Way's 1993-94 fund-raising campaign raised $15.3 million, slightly over its goal. The allocations will go into effect July 1, the start of the 1994-95 fiscal year.
{REST} The announcement was welcome news for Samaritan House, a Virginia Beach shelter for homeless families and battered women that receives more than 10 percent of its funding from United Way.
``Needless to say, we're thrilled,'' said Ellen Cospito-Ferber, executive director of Smaritan House. ``In fact, we got a slight increase.''
Of the 70 agencies funded by United Way, 28 received increases, 31 held steady and 11 will receive less money for the 1994-95 fiscal year. This will be the first time in three years that significant cuts weren't required.
United Way officials offered three reasons: an improved economy, a successful fund-raising campaign and improved collections over past years.
Because United Way relies heavily on deductions from employee's paychecks, the agency factors in a ``shrinkage factor'' of 8 percent to 11.5 percent when estimating total contributions. The formula takes into account people who make pledges and can't follow through due to death, relocation or company downsizing.
``This year we beat that historical average,'' said Mike Hughes, president of United Way of South Hampton Roads. ``We did slightly better than we did the previous year in terms of collecting donations.''
Achieving the $15.3 million goal also was aided by lowered expectations. The campaign goal of $15.1 million was the United Way's lowest since the late 1980s.
About 20 percent of the contributions are earmarked for specific agencies. More than 100 volunteers often spend long hours deliberating how to allocate the rest.
``The volunteers make very tough decisions, based on the information we give them,'' Hughes said. ``They discuss with the agencies their programs and then reach a consensus.''
In recent years, fund raising has been hampered by a sagging economy and a controversy at the national level over former United Way of America president William Aramony. Dogged by charges of extravagant spending and mismanagement, Aramony resigned in February 1992.
Web Gould, executive director of the Boys and Girls Clubs of South Hampton Roads - which receives more than 35 percent of its funding from United Way - watched his agency's funding drop 7 percent a year, starting in 1992. That translated to more than $85,000 in the last several years.
``The impact of the decline on our agency was significant,'' Gould said. ``The first year we made the adjustment, but the second year hit really hard.''
After struggling through several years of declining support, the thought of simply maintaining their funding was a boon for many United Way agencies. Yet Gould isn't ready to declare the crisis passed.
``Even though our funding held steady, in essence it's still a decline against rising costs, so we still have that battle to fight,'' he said.
by CNB