Charities out $500,000 as United Way falters

WATERLOO REGION — Dozens of agencies that rely on the United Way are out $500,000 after community fundraising came up short for a second year.

The regional United Way has slashed funding to community groups by 13 per cent across the board, telling them it can no longer dip into its savings to maintain funding. Up to 90 programs are affected across three cities and four townships.

Charities say the United Way is faltering because fewer people are giving, more charities are competing for donations, and the workplace donation model is shifting.

“There’s fewer donors, more charities, and people wanting to give in a different way,” said Elizabeth Clarke, chief executive of the YWCA Kitchener-Waterloo.

The YWCA has responded with an emergency crowdfunding appeal online, seeking $30,200 to replace the United Way funding it lost for its women’s shelter in downtown Kitchener.

The United Way’s latest missed fund--

raising target was for just over $7 million, said Ingrid Pregel, co-chair of the United Way Waterloo Region Communities.

“We managed to dip into reserves in previous years so we didn’t need to reduce funding,” she said. “We’ve run out of that option and needed to, for the first time, make changes to our allocation to the community.”

The United Way met with affected organizations in May to tell them. Some organizations are working with the umbrella agency to mitigate impacts.

Pregel said the United Way is working to restore its appeal, understanding that it needs to show people how their donation makes a difference.

“All charities that are raising funds are experiencing this,” Pregel said. “Donors want to be engaged in a different way. We are working with workplaces to understand how they want to engage, what’s going to be meaningful for them.”

One way is to take donors on bus tours to show them programs in action. Another way is to invite groups to pool their donations and pick where their money will go.

The YWCA expected the United Way to trim its shelter funding but was caught offguard by the size of the cut, Clarke said. If compelled, the agency can dip into its savings to keep its shelter going this year, but that’s not sustainable and the agency can’t see how to trim shelter costs. Crowdfunding is not a long-term solution, Clarke said.

The 60-bed shelter on Frederick Street serves women and families. Some stay for just days. Others stay for months while the agency helps them find permanent housing.