United Way Will Ask Non-Profits To Meet Its Goals

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With the gap between rich and poor growing locally, the United Way of Greater Los Angeles has decided to redistribute some of the money it gives to non-profit groups.


The umbrella fundraising organization is shifting away from a model that funded a set of traditional partners each year to one that will require non-profits to compete for the funding all toward the aim of eliminating poverty in Los Angeles.


“We’re moving away from relationships based on history and moving toward relationships that are aligned with our new mission,” said Elise Buik, president and chief executive of the L.A. chapter of United Way. “Now, all of the funding is going to be tied to measurable results.”


The new funding criteria will be applied to all donations given to United Way not earmarked by the donor for a specific cause. That amounted to $15.6 million last year, while another $33.6 million given with earmarks will not be affected.


Buik acknowledged that some of the organization’s traditional partners may not favor this change, but she contended the early response has been mostly positive.


As a partner organization under the old funding scheme, Jewish Family Services Los Angeles received about $300,000 from Untied Way last year. Though the group will now have to compete to maintain that funding source, Chief Executive Paul Castro said he supports United Way’s new mission.


“Everybody would like to have unencumbered operating support, but I also realize that United Way has to look at how they can have the greatest impact in the community,” said Castro, who was among those consulted by United Way about the new funding plan.


Some other traditional partners include Boy Scouts of America, American Red Cross, Salvation Army and YMCA. Groups interested in receiving funding will need to submit proposals by April 23, which United Way officials will individually evaluate.


The new effort will direct 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.


Buik said the plan came about in response to the increasing disparity among the rich and poor in L.A. County.

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