For agencies accustomed to United Way support, no more guarantees

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HANCOCK COUNTY — Changes to the way United Way of Central Indiana operates have partner agencies here scrambling to find alternate funding sources.

In late August, United Way of Central Indiana announced a new strategic framework that did away with guaranteed funding for its 85 partner agencies throughout the six-county region. The move instead encourages agencies to compete for grant funding, said Kiko Suarez, chief community impact officer for UWCI.

Traditionally, United Way has collected money from donors — often through workplace-giving programs — and redistributed it to partner agencies. That practice will continue, but how United Way decides to distribute the funding is changing. Agencies accredited by United Way will be able to apply for funds based on its goal of addressing poverty. The nonprofit will measure the impact of programs and will only fund those that deliver results.

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For agencies in Hancock County that have historically depended on UWCI for financial support, the new model could well mean less funding.

The change, in response to years of dwindling funding, is an effort to better serve people in need in central Indiana, Suarez said. He said the new framework, which focuses on providing competitive grant funding to partner agencies serving more than one generation, aims to assist people who are working but near poverty, known as “asset limited, income constrained, employed,” or ALICE families.

“United Way and its partner agency ecosystem need to do better for the people they serve,” Suarez said.

In Hancock County, agency directors are looking at ways of raising funds on their own. Many do so already, but the prospect of reduced support from such a major funder is uncharted territory for some of them.

Chad Hudson, executive director of the Boys & Girls Clubs of Hancock County, said the youth-based nonprofit has received the highest level of funding available, about $80,000 a year. In light of the news the organization would no longer be guaranteed that funding, Hudson immediately began seeking out other sources.

He went before the Greenfield City Council to request the deed to organization’s Jim Andrews Unit, at 715 E. Lincoln St., Greenfield, in order to leverage the property for credit if necessary, he said.

In addition, the organization, which operates a satellite club at Eastern Hancock schools, also started a capital campaign to raise $145,000 aimed at helping with operating needs and upgrades in safety measures for the building.

Hudson said the club has valued its relationship as a United Way partner, but the organization won’t rely on receiving funding from United Way’s new competitive grants to operate.

Two other Hancock County United Way partner agencies have adopted more of a wait-and-see attitude in regard to changes in funding.

Meals on Wheels of Hancock County receives roughly $20,000 a year, or about 12 percent of its annual budget, in funding from United Way, through grant funding and through donations directed to the agency from United Way’s annual campaign, said executive director Kathleen Vahle.

The organization’s board is working on its strategic plan, but it is hard to find grant funding for such a small organization, she said. Most state or federal grants are restricted to agencies with a regional reach, and this branch of Meals on Wheels serves only Hancock County, she said.

“We don’t have a plan right now,” she said. “We’re not looking for another grant, we’re not looking at adding another fundraiser.”

She said the answer will probably be for the organization to focus on community support and to pursue the competitive grants offered through United Way of Central Indiana.

She said Meals on Wheels of Hancock County, which is on track to serve 23,800 meals this year, will support UWCI’s initiatives and continue to support the organization through the partner agency relationship.

Bob Long, executive director of Hancock County Senior Services, which also operates Hancock Area Rural Transit, a low- and no-cost transportation service for county residents, said the organization will focus on building relationships with donors and being good stewards of donations in light of the loss of guaranteed funding from UWCI. Senior Services already has sent mailers to supporters asking for donations. The agency plans to acquire four new vehicles next year as some of its oldest vehicles rotate out of service, and it will have to raise money to pay its share of the cost.

“The future is unknown, but we’re not panicking,” he said. “We don’t know quite what to think yet.”

He said as a small organization, it behooves Senior Services to stay nimble and look for new funding sources.

The organization’s full allocation from United Way for this year was $71,389, which will reduce to at least $42,833 in the next fiscal year, which starts in July, said office manager Vicki Adams.

Long said he’s grateful UWCI has continued to work with partner agencies and offer them the opportunity to be part of the conversation as its framework changes.

Regardless of the challenges ahead, Long said he feels bolstered by the support of his organization’s leaders.

“We’ve got a passionate staff, board and volunteers,” he said. “It gives me a great sense of comfort to know we’re all pointed in the same direction … I’m optimistic. Regardless of how things shape up, we’ll adapt.”