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During the pandemic, the United Way of Greater Rochester and the Finger Lakes extended its grant cycle, providing $45 million in funding to 193 agencies.
That has changed. After the pandemic, funding for the nonprofit sector has dropped by $2 million to $5 million annually, despite making great efforts to secure investments and donations.
“This is a painful reality that we cannot provide money that we simply do not have. It shines a light on this unfortunate trend that is a societal problem and that we must come together on because it is simply not sustainable,” said President and CEO Jaime Saunders.
United Way is a nonprofit organization committed to improving the community by addressing inequities, investing, and providing resources to residents and local businesses. In 2021, following the impact of the COVID-19 pandemic on local businesses, the United Ways in Genesee, Livingston, Monroe, Ontario, Wayne, and Wyoming counties merged to form the United Way of Greater Rochester and the Finger Lakes.
As one of the first locations in the country, the organization is considering how to evolve its funding for nonprofit support and sustainable growth. United Way agencies recently met at its Rochester location at 75 College Ave. to discuss the ongoing impact of the pandemic and its impact on the nonprofit sector.
“We recognize that the aftermath of the pandemic is still being felt in many ways: increasing community needs, massive changes in giving and work culture, and exacerbated community challenges,” Saunders said.
To ensure the future longevity of the new grant cycle, United Way plans to “right-size” its funding and responsibilities in three ways:
- A move away from the previous model where the campaign was 100% funded by multi-year grants, to a model where just over half of the campaign is funded by multi-year grants.
- Building your donor naming program
- Expansion of available grant types
With these changes, they hope to provide more flexibility, secure donations, and provide organizations with multiple sources of funding.
Impact of United Way cuts on the community
In response to the funding changes, several Monroe County nonprofits released a statement “to demonstrate our unwavering commitment to the community we know and serve so well and to address the issue of this significant decline in long-standing funding.”
The statement said the cumulative funding cuts at the 16 agencies named in the letter could affect up to 40,000 individuals or households, with funding losses amounting to more than $5 million in essential services.
The joint letter states that the cuts affect specific programs, with individual agency losses ranging from $60,000 to $815,000 per year. Some examples of programs that have lost all of their United Way funding include:
- A loss of $710,000 that enabled the Baden Street Settlement to provide essentials and after-school programs to families in the poorest communities in the city of Rochester.
- $250,000 that Foodlink distributes to smaller food distribution centers, a community response to food shortages
- $100,000 to support JFS Rochester’s work with older people, including Holocaust survivors, who require specialized, ongoing support in the final years of their lives
“The magnitude of United Way’s funding cuts is creating an unintended crisis in our community, as this funding has long been a critical pillar for the entire service system,” the statement said. “We have already come together to work together to push for systemic solutions to this crisis.”
The letter was signed by:
Action for a Better Community, Inc.Baden St. Settlement of RochesterBoys & Girls Clubs of RochesterCatholic Charities Family and Community ServicesCenter for YouthCharles Settlement House and Community Place of Greater Rochester EnCompass: Resources for LearningFoodlinkIbero-American Action LeagueJFS RochesterLifespanMary Cariola CenterSalvation ArmySt. Joseph’s Neighborhood CenterThe Rochester School of the Holy Childhood, Inc.YWCA of Rochester and Monroe County
Despite these cuts, FoodLink plans to continue operating the emergency food system and supporting member organizations with food and funds. “We are confident that we can raise funds to offset these cuts and maintain our level of service. Nonprofits like Foodlink face our community’s greatest challenges every day and need continued financial support and volunteers to do so,” said Julia Tedesco, CEO and President of FoodLink.
The Center for Youth has seen a 75% funding cut. This will directly impact homeless programs and the Critical Child Care Center, but work with United Way and other funders will continue.
“I think we should look at this as a community crisis and find ways to make sure every baby, every child, every young adult and every elderly person has shelter, food and safety,” said Executive Director Elaine Spaull. “I think as a community, if we do it together, we can do this.”
Generosity crisis
Monroe County Legislature Vice President Mercedes Vazquez-Simmons and County Representative Rachel Barnhart are calling for the remaining $4.3 million in American Rescue Plan Act funds to be allocated to these organizations by year’s end to close the funding gap.
“This is something we can do immediately to meet the deadline to spend the ARPA funds and ensure that these vital services continue,” Vazquez-Simmons said. “Many of these services are in my district. We have the power to act and we must do so.”
Last week, Vazquez-Simmons and Barnhart proposed an amendment to a $6 million fund for youth and senior services at community centers in suburban areas.
The amendment sought to add $2 million and expand access to the city of Rochester. In support of the amendment, lawmakers highlighted the United Way’s recent cuts to youth and senior services.
“Unfortunately, the amendment was defeated. It was painful to watch my fellow Democrats argue that the city had already received enough ARPA funds,” Barnhart said. “Now we have a chance to right the wrong. Obviously the need is great. Let’s do it.”
For the second year in a row, the philanthropic research foundation Giving USA reported a decline in the number of Americans giving to nonprofit organizations; adjusted for inflation, the total amount donated is declining.
Some in the philanthropy sector are talking about a “generosity crisis” because fewer than half of American households now give money to charity. In 2016, 20 million fewer households gave than in 2000. And donations are increasingly coming from a small group of extremely wealthy individuals.
Genae Shields is the business and development impact reporter. For questions, comments or concerns, contact [email protected] or on Instagram: @genaebriphoto. Thank you for your continued support!
