Area nonprofits respond to United Way funding model changes

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Local nonprofits have responded to the new funding model for the United Way of Greater Rochester and the Finger Lakes, which they say amounts to more than $5 million in funding cuts for services.  

Sixteen local non-profit human services organizations released a joint statement Monday morning, noting they have collectively mobilized to demonstrate their commitment to the community and to problem-solve around the drop-off in long-time funding.  

“Our collective response and the related sense of urgency is not solely rooted in concerns about individual agency losses; it is equally expressive of deep concerns about the impending diminishment in the capacity of our region’s system of human service delivery,” they stated. “We think it’s important that the public understands what these reductions mean in human terms because we need the help of the community now more than ever.” 

Earlier this month, the United Way of Greater Rochester and the Finger Lakes announced it was evolving its funding model after recent challenges due to several recent factors prompted the organization to revise its strategy. 

The change meant that the full roster of organizations that received multiyear Community Impact Funding from the United Way in past years will not all be funded this time around. Such funding has been crucial to many organizations in the region.  

Jamie Saunders, president and CEO of the United Way of Greater Rochester and the Finger Lakes, noted at the time that, like any business, the 106-year-old nonprofit has been affected by recent economic and environmental impacts, driven largely by the COVID-19 pandemic, which changed the face of the workplace.  

Those changes resulted in business closures, furloughed employees and altered or faltered workplace campaigns that supported the United Way, she explained.   

The release from the local agencies stated that the cumulative funding reductions among the 16 agencies represented could impact over 40,000 individuals or households currently served by affected programs and amount to more than $5 million in services.  

The agencies acknowledged and appreciated the $2 million bridge funding announced by United Way late last week, noting it will be helpful with planning and the implementation of necessary program changes. 

They added they have been speaking with foundations, individual donors and partners in government to locate and obtain replacement funding for the services.  

The loss of the United Way funding will also put in jeopardy critical matching grants from partners like the state and federal governments, with which the agencies have contracts, they noted. 

Additionally, at least 100 jobs are at risk, with the funding reductions impacting specific programs, with individual agency losses ranging from $60,000 to $815,000 per year. 

Some examples of programs that have lost their United Way funding in its entirety include: 

• A loss of $710,000 that has allowed Baden Street Settlement to provide access to necessities and after-school programming to families in impoverished communities in the city of Rochester.
• $250,000 that Foodlink passes through to support smaller food pantries.
• $100,000 that supports JFS Rochester’s work with older adults in our community, including a sizeable group of Holocaust survivors who in the final years of their lives need specialized ongoing support.

Other agencies received some funding from United Way, however experienced dramatic reductions from previous grants. Some examples include:  

• Funding for the Salvation Army was reduced from $600,000 to $85,000 in programs that meet basic needs for 8,500 individuals.
• Catholic Charities Family and Community Services sustained a loss of 89%, or $570,000, across several programs serving vulnerable older adults through transportation, care management and social programming as well as programs providing for the basic needs of residents of Northeast Rochester.
• Charles Settlement House & Community Place of Greater Rochester will be reduced by a combined $815,000 for the Family Services (basic needs) and After-School programs.

“The breadth of United Way’s funding reductions creates an unintended crisis in our community because that funding has long been a critical pillar for the entire service system,” the agencies’ stated.  

The affected agencies are meeting in collaboration to address the issue and welcome input from the United Way, local government and other philanthropic partners to work toward solutions.  

“This problem will require systemic solutions, and we are energized to lead the way toward a better outcome for our community,” the release stated. “We are determined to ensure that the people of Monroe County continue to receive the care and support that makes a difference in their lives.” 

In addition to the bridge funding, the United Way of Greater Rochester and the Finger Lakes announced late last week that it was allocating more than $8 million in multi-year program grants and bridge funding support to nonprofits across its six-county service area. There were 97 programs representing 89 nonprofit organizations funded with support from 30,000 donors.  

Funding distribution beings in January.   

“The multi-year grants are one component of a robust support strategy for our nonprofit sector,” Saunders said. “We recognize that the needs of our neighbors are significant and immediate – they can’t wait for our full strategy evolution, thus we are not only committed to supporting the 2025 multi-year recipients but also supporting any transition of important services provided by our current multi-year partners today.”   

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