United Way cutting costs in face of declining pledges

As a result of campaign pledges coming in below expectations, the United Way of Southeast Missouri has had to re-evaluate its operating costs and make some changes.

The local not-for-profit has eliminated one member of its four-person staff. John McGowan, who served as director of community impact for the United Way for the past five years, was let go Nov. 11 in an effort to cut administrative costs at the agency.

After a $115,000 decrease in donations last year and $45,000 less in anticipated pledges this year, executive director Nancy Jernigan said it is clear the cuts are too deep for the organization to be able to continue operating at the same level.

This year's fundraising goal is $950,000, down from last year's unmet $1.01 million goal. To date, the United Way has received campaign pledges equal to about 50 percent of this year's goal, Jernigan said.

"Many campaigns are up, but the two big hits we've taken these past two years have overshadowed the increases in our other campaigns. We've had to cut our agencies, and we can't expect them to take cuts and us not," she said.

Right now, about half of the local companies conducting United Way campaigns have turned in their pledges. Of those, 56 percent have increased their donations from last year's levels, Jernigan said.

Still, there is concern that the United Way will not meet its goal this year, said Kevin Greaser, campaign co-chairman and a member of the United Way board's finance committee.

"We feel as a board it would not be responsible of us not to make adjustments in our overhead if indeed the campaign was coming up short," Greaser said. "It was extraordinarily difficult to make this decision."

In his role as community impact director, McGowan worked with the more than 30 agencies in Southeast Missouri that receive United Way funding. He oversaw the organization's funding allocation process and worked with agencies to broaden their reach.

"I still firmly believe in the mission," McGowan said. "I'm just sad I'm not going to be there."

He said he is proud of the organization for making such a difficult decision.

"If we are going to impact the community, we need the money to be getting into the programs," McGowan said. "Once our administrative costs start getting too high that's not helping the community and it's not helping the agencies and it's not helping the United Way."

Jernigan said she hopes the staffing reduction doesn't decrease the quality of the services the United Way provides.

"We'll just have to work harder and smarter," she said. "We can't keep cutting our agencies at a time when the needs are so great. There are more people in need than ever. We're doing everything we can."

Jernigan said after last year's funding shortfall, they went through their administrative budget line by line for cuts, including reducing employee benefits and no longer paying for office cleaning services.

Both Jernigan and Greaser are hopeful the United Way will still come close to meeting its $950,000 goal.

"We know that there are a lot of campaigns out there that are done but just haven't been turned in. Hopefully they will turn those in as soon as possible. Some campaigns are still underway," Jernigan said.

Procter & Gamble, the United Way's largest contributor last year, has yet to turn in its campaign pledges, she said. Neither has Southeast Missouri State University, which was the fourth-largest contributor last year.

For the first time, the United Way will hold a "United We Rock" New Year's Eve bash at The Venue in an effort to bring in revenue.

"We're actively seeking sponsors to cover all of the costs," Greaser said. "We're really optimistic that it will contribute to the bottom line, but this is the first time for it and we couldn't count on it to rescue us from the perceived shortfall of the campaign."

The event will include two bands, prize raffles, food, drinks and a Champagne toast at midnight. Tickets are $50. For more information, call 334-9634.

mmiller@semissourian.com

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