United Way funding shrinks

Friday, Feb. 1, 2002 | 9:14 a.m.

Nonprofit agencies that fund youth and health education programs have been warned by the United Way of Southern Nevada to hunt for additional funding.

The umbrella agency is tightening its belt during the current recession and may have to reduce some allocations by up to 30 percent for about 100 of the 150 programs it helps fund, executive director Jim Kropid said.

Another 10 job placement programs face up to 13 percent reductions, Kropid said.

However, about 40 programs that deal with four basic needs -- emergency shelter, housing with life skills programs, food and utility assistance -- will receive full allocations, he said.

"I can't stress enough that these are worst-case scenarios," said Kropid, noting that the agency, which has an annual $10 million-plus budget, is giving nonprofit groups plenty of time to find alternative funding.

"This did not come as a surprise to many of the agencies, because they saw their own donations drying up."

Not all youth programs are being cut. Kropid said that while the Boy Scouts in general may be getting less money, the annual Scouting For Food drive that gathers tons of canned goods to feed the poor will remain fully funded, because that program addresses a basic need.

Mike Miller, spokesman for the Boy Scouts of America Boulder Dam Area Council, which oversees 29,000 local boys, said his organization will try to make up the roughly $100,000 difference through its annual giving campaign. The group also plans to step up efforts with community leaders and may hold more special events such as golf tournaments.

"We're happy for the heads-up," Miller said.

Mike Lubbe, president and chief executive officer of the YMCA of Southern Nevada, said his agency "will be more aggressive in our fund-raising."

The YMCA, which could lose about $50,000 from its $4 million budget, will apply for state and federal grants and try to get more out of its Strong Kids Campaign and special fund-raising events.

One agency that could lose 30 percent of United Way funding already has found new money. Lutheran Social Services of Nevada has received $22,500 from MGM MIRAGE Inc., for its Service in Youth Mentoring Program, which helps youths in the juvenile justice system.

Executive director Christine Springer called the United Way's decision to cut some funding "pragmatic. You do only what you can do and you have to prioritize as they (the United Way) have done."

MGM MIRAGE, formerly the United Way's largest contributor, last year opted to take control of its corporate giving and allow employees to make payroll deduction contributions to other groups in addition to the United Way.

Kropid said the MGM MIRAGE funding had accounted for 20 percent of the United Way's money.

While it was difficult for the United Way to cut back on youth services, it was even harder to reduce allocations for health programs such as Aid for AIDS of Nevada.

"That was one of the tough decisions," said Merlinda Gallegos, United Way community development manager.