United Way’s New Funding Criteria Adds Recipients Buts Cuts Others Out

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For the first time in its history, half of the United Way of Greater Los Angeles’ local partners are agencies that have never before received funding from the organization.


After years of funding the same groups, the United Way of Greater Los Angeles opted in March to redistribute some of the money it gives to non-profit organizations.


Of the 139 partners chosen last week to receive money out of United Way donations not earmarked for a specific cause 50 percent are new partners for the umbrella funding organization.


The organization shifted away from its longtime model of giving money to a set of traditional partners each year and instead required non-profits to compete for the funding. The overall aim is to work on eliminating poverty in Los Angeles.


Past recipients who applied for but did not receive funding included the Greater Los Angeles Agency on Deafness and Boys and Girls Club of Long Beach, both of which applied for funding. The Salvation Army and the Volunteer Center of Los Angeles, which had been awarded money in the past, did not apply for funds.


Organizations were evaluated based on outreach to the target population, measurable results and a successful track record, fiscal stability and geographic reach. The new effort directs funds to three areas the organization believes are vital to stem the growing number of Angelinos living in poverty: basic needs (including food, healthcare and shelter), education and financial stability.


The funding criteria are applied to donations given to United Way not earmarked by the donor for a specific cause. The amount of money that met those criteria last year amounted to $15.6 million.


Under the new scheme, groups like Jewish Family Services Los Angeles, which received about $300,000 from United Way last year, have to compete to maintain that funding source. Jewish Family Services qualified for funding again under the new plan.


“The reality is that Los Angeles County is at a crossroads that can no longer be ignored,” said Elise Buik, president and chief executive of the United Way of Greater Los Angeles, in a statement. “Sixty percent of households with two working parents do not earn a living wage to adequately support a family of two children, nearly one in four persons have no health insurance and 30 percent of our workforce does not have a high school diploma.”


Nearly 500 groups seeking United Way funding submitted proposals by April 23 and were evaluated by organization officials.


First time funding recipients in the Los Angeles area include Saint Joseph Manor, Wilmington Community Clinic and the Corporation for Supportive Housing.


Longtime partners that will receive funding include Boy Scouts of America, the American Red Cross, Salvation Army and the YMCA.

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