United Way cuts funds to area agencies

AUSTIN (KXAN) - Nonprofit organizations in Austin rely heavily on United Way. But now some of those nonprofits are looking for ways to survive after United Way for Greater Austin announced more than a million dollars in cuts.

The news came late last week that nearly two dozen nonprofit agencies will each lose thousands of dollars.

United Way officials said they had no choice but to cut $1.2 million -- money that went to help everything from education and health care to the elderly.

For nonprofit agencies in Austin the search for funds is a priority. Angela Atwood with Family Eldercare was one of 22 agencies hit by a big surprise after United Way decided to cut its donations.

Family Eldercare, which provides services and in-home care for Austin's rapidly rising senior citizen population, lost $64,000 in funds.

"Our contract with United Way was to begin July 1 and we were notified end of business [day on] July 19,” said Angela Atwood, CEO of Family Eldercare.

It's money the agency had already spent providing fans for the elderly, who in this Texas heat, are without air conditioning.

"The electric [bill] has gone up so high you can't afford the a[ir] c[onditioning],” said Rose Naylor, Family Eldercare client.

It is a decision that has affected all kinds of nonprofit organizations.

Capital Idea, an agency that works to stop poverty, lost all $100,000 in funding. So did Meals on Wheels And More , which lost $76,500. Austin Groups for the Elderly lost $72,500. Others like LifeWorks received a reduction, losing $140,000.

United Way says it was forced to make tough decisions.

"Donations to the United Way went down, and so with the campaign down we had to make some decisions that we could no longer sustain funding out of our Rainy Day Fund,” said Lauren Payver, spokeswoman for United Way for Greater Austin.

That fund had already been tapped into covering $3 million in costs. They have also tried other measures like layoffs and pay cuts, but it still was not enough.

"It was a really tough decision, but we wanted to focus on where our measurable results were coming from the most, and that was in our education area," Payver said.

They are cuts that have United Way asking for help in hopes of continuing to provide service that thousands who need it.

"We are really hoping this is a call to action and a rallying cry for Austinites, we want to be able to increase funding,” said Payver.

View this page to make a donation to United Way for Greater Austin.