MINNEAPOLIS (AP) - Charities in the Minneapolis-St. Paul area are bracing for cuts as the local United Way chapter manages a big revenue drop-off.
The Star Tribune (https://strib.mn/2pewUBC ) reports the Greater Twin Cities United Way is telling 150 nonprofits their funding will be reduced or cut because of a $6 million shortfall in 2016 revenue.
Twin Cities United Way President and CEO Sarah Caruso said the organization raised a total of $87.6 million in 2016, exceeding its fundraising goal by $2.2 million. But that was still $11 million less than money raised in 2015, making 2016’s revenue the lowest in seven years. Last year also marked the second straight year of declining revenue for the organization.
Caruso said much of the shortfall was due to more donors designating specific charities rather than allowing United Way to decide how to spend their money.
“People are as generous as ever, but they want a clear line of sight between their passions, their philanthropic giving and their volunteer time,” she said.
Caruso said United Way-directed initiatives will be reduced this year by 9 percent overall and that every charity will experience some loss. She said Twin Cities United Way will give more than $75 million to nonprofits across the state this year.
Last week, nine United Way staffers were laid off and executive pay was frozen, totaling an 11 percent expense reduction. Caruso declined to comment on which staffers were cut or how much donors gave as designated contributions.
The chapter’s website says the organization spends about 12 percent of its budget on administration and marketing.
Information from: Star Tribune, https://www.startribune.com
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