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United Way Announces 1998 Campaign Results
Thursday, November 12, 1998 - Dayton, OH United Way of the Greater Dayton Area volunteers exceeded the challenging target of raising $700,000 in "new money" in 1998 by more than a hundred thousand dollars. First-time contributions and increases from past supporters resulted in $850,000 in new resources for the organization. Unanticipated losses of $700,000 after goal-setting caused the annual campaign to net out at 97% of the $19 million goal for a total of $18,453,309.
United Way is entering the second year of a two-year funding cycle, so the undesignated dollars from the 1998 campaign will be distributed to the agencies currently receiving outcome-based funding. The reduction will be spread equally across all funded programs in 1999.
"We knew at the outset that our renewable base of contributions was shifting to a greater degree than ever," United Way President Craig Chancellor said. "When we set the goal in September, we hoped that the situation would stabilize. But, unfortunately, it didnt. After we began campaigning, we learned of additional losses to the tune of $700,000."
When setting the goal, United Way volunteers and staff had identified $1.2 million in prior contributions that would not be renewed for the following factors: leadership giver retirement, relocation, and death $130,000; plant/store/bank closings, headquarters relocating, mergers, and acquisitions $210,000; federal privatization and downsizing $250,000; corporate restructuring and downsizing $450,000; and others such as one-time and matching gifts $160,000. This amount was double the average reduction to the base over the past few years.
The additional $700,000 in losses experienced during the campaign primarily were due to greater than anticipated effects of corporate restructuring, mergers, and downsizing as well as the related uncertainty it caused among existing employees. When meeting with medium-sized businesses, United Way volunteers also discovered widespread negative effects of these economic changes on local suppliers to the areas largest industries.
Chancellor praised Campaign Chairman Doug Deck, CEO of Good Samaritan Hospital, and all of the campaign volunteers for their hard work. "This is a tough and often thankless job," he said. "Our community is fortunate to have a person of Dougs caliber to take up the challenge."
"There are successes across the board which deserve to be recognized," Deck said, "from small nonprofit organizations like Choices in Community Living to new local economic bright spots like Bank One Private Label." Employee giving at these organizations rose 40% and 28% respectively.
With the uncertainty in many of the areas largest employers, the 1998 Campaign volunteers focused on increasing contributions from executives, professionals, and persons of high net worth and from small to medium-sized companies. "We were successful on both counts," Deck said.
Leadership Giving, Professional Services, Auto Dealers, and New Business Development all exceeded 100% of their growth goals. The biggest increases were achieved by: individual leadership givers, up 9%; the insurance industry and nonprofit sector, both up 10%; service-related businesses, up 11%; and contractors, up 13%.
"CultureWorks had a similar story in July," Deck said. "Gifts from individuals reached record heights, but it was not enough to offset corporate and workplace giving losses to reach goal."
"Obviously, no one wants to hurt the agencies that serve our neighbors in need or the other organizations that make our community a better place in which to live," Deck said. "Perhaps these campaigns can be a call to action in which the community pulls together to help the nonprofit sector weather the effects of the shifting economy."
Chancellor echoed the concern. "Well do everything we can to lessen the impact on the agencies receiving outcome-based program funding from the undesignated dollars," he said. "Although the United Way is already extremely lean, well tighten our own belt trim our own budget first."
"Were also hopeful that a very early trend which shows a three to four percent increase in dollars for the Focused Care Outcome Areas and a corresponding decrease in designations to specific agencies continues," Chancellor said. "This could provide a slight upward adjustment to the anticipated cuts."
"It is not too late to contribute," Chancellor said. "Individuals and companies can still contact my office at 225-3015 to receive a pledge card and other information. Or contributions can be sent to United Way at 184 Salem Avenue, Dayton, 45406."