City props up charities left in lurch by United Way shortfall
UW CEO says organization is changing its strategy by targeting investments
Hamilton councillors agreed to spend nearly $160,000 to keep about 30 local charitable programs alive after nearly 20 local organizations saw their funding dollars eliminated by the United Way of Halton and Hamilton.
“I don’t know why it always lands back on the taxpayer,” said Ancaster Coun. Lloyd Ferguson.
City councillors were left scrambling in April after the United Way of Halton and Hamilton decided to eliminate funding to 19 local organizations, while only providing about 80 per cent of the needed funding to four groups which in the past received money.
Overall, the United Way slashed more than $170,000 in funding to up to 24 community groups for 2018.
Brad Park, president and chief executive officer of the United Way of Halton and Hamilton, told members of the grant subcommittee June 11 that there was a combination of reasons for the funding cuts. He said the United Way’s fundraising efforts fell short in 2017-18, raising just over $10 million. Park said in Hamilton the decline was about $500,000 less than what had been raised the previous year.
When the United Way oversaw Burlington and Hamilton prior to its April 2017 merger, the group raised just over $6 million for the two municipalities.
Organizations that had cuts included Glanbrook Home Support’s Meals on Wheels program; about $32,000 to Dundas Community Services and more than $17,000 was eliminated to Flamborough Connects. It means, said Flamborough Coun. Judi Partridge, there is no organization in Flamborough that is directly funded by the United Way. Other groups that saw their funding eliminated included CNIB Hamilton, Hamilton Jewish Social Services, Lynwood Charlton Centre, the Navy League of Canada and St. Joseph’s home care.
Park told councillors that if the United Way had met its fundraising goals for 2017-18, “more likely we would not be standing here.”
In addition to the United Way of Halton and Hamilton’s amalgamation, it was implementing a new strategy on where to invest its dollars. Instead of providing funding to all groups that apply, Park said it is now “targeting” its funding.
“There are pieces of our focus that touches on poverty,” said Park. “But they are not the sole pieces. We can’t tackle poverty. We can’t tackle housing. It’s too big of an issue. There are only so many programs to fund.”
In 2017, said Park, the United Way received 82 applications, and 44 were approved. The organization is supporting 29 Hamilton organizations this year.
Park told councillors all the organizations that had received funding in the past were told a number of times there would be a funding shortfall.
Park defended the United Way’s grant process, its decisionmaking criteria and the 23 per cent cost it spends on salaries and administration. He said over the last three years the organization has eliminated four full-time employees.
Park said the United Way has provided about $30 million in funding to organizations over the last decade.
Councillors approved recommendations to give $15,000 for the Children International Learning Centre; an additional $10,000 to St. Matthew’s House’s food program; $22,309 extra to the YWCA and $39,119 to the Multiple Sclerosis Society of Canada, which all had their funding cut by the United Way. This year the city is providing just over $6.3 million to various charitable organizations.
By providing an additional $160,000 funding to the organizations through the City Enrichment Fund to top-up funding to those organizations that were rejected by the United Way, it has meant the grant reserve fund has dropped to $34,912.
“It has put more pressure on the city,” said Coun. Brenda Johnson. “It has also put those 30 programs (funded by the city this year) in jeopardy in 2019.”