Hurt by a slow economy and news of scandal at its sister charity in Washington, the United Way of Central Maryland expects giving to fall $2 million short of last year - the first decrease in seven years.
Charity officials are asking companies to extend their workplace campaigns, most of which ordinarily would have closed by now, to ask employees who haven't given to change their minds. They have also persuaded a number of companies, such as NeighborCare Inc., to start new, late campaigns in December and January.
Unless pledges pick up considerably, United Way will raise about $43 million this year - a 4.4 percent decline from last year and $4 million less than the campaign's goal of $47 million.
"When you take all of these things together, it has just been a horrendous year," said Larry E. Walton, president of the local United Way. "We had more external factors hit us in the campaign that we have no control over than at any time I have been in this business."
Walton estimated the charity has lost $800,000 in corporate gifts from companies that gave in the past but have filed for Chapter 11 bankruptcy. Others have cut their work force, leaving fewer to contribute - though those who are left have tended to pledge more, he said.
Many wealthy givers, most of whom donate stock, have delayed commitments while they assess the gyrations of the ailing stock market. And donors of all types have asked Central Maryland officials pointed questions about accounting after news that the United Way of the National Capital Area, serving Washington and neighboring counties, is under federal investigation for financial irregularities.
"A number of people haven't made their decisions about what to give, because they aren't sure what's going to happen," said Freeman A. Hrabowski III, the University of Maryland, Baltimore County president who is campaign co-chairman with his wife, Jackie, a vice president at T. Rowe Price.
"The economy has continued to go south, and the national media have continued to focus on problems in Washington, D.C.," he said.
The Washington stories - followed by a recent article in The New York Times that detailed questionable accounting practices at several United Ways across the nation - have cost the Central Maryland charity, even though its leaders say it has none of the same problems.
"We all get painted with the same brush," said Walton, who estimates the negative publicity will deprive his group of $400,000 to $500,000 in donations.
Walton also blames the sniper attacks that gripped Maryland suburbs for several weeks in October, saying United Way campaigns in Anne Arundel and Howard counties virtually stopped during that time because activities were canceled.
Hrabowski, known for fund-raising success at UMBC, said he has found the United Way job surprisingly hard. He said he and his wife are trying to focus on stories of the needy to show people how their gifts would help.
But in this economic environment, even that approach is difficult. At the university, he said, donors "can come and see how this place is growing and developing." With United Way, "often you're giving money to children that you'll never see."
In anticipation of the shortfall, Walton cut $692,000 last week from his administrative budget for the next six months. He also eliminated nine of 105 positions, all but two through attrition.
More cuts are expected this spring, he said.
The local United Way board plans to meet at the end of January to discuss how it will spread the decrease among the charity's 127 member agencies.
Walton said the shortfall will especially pinch agencies that depend on allocations from the United Way "community safety net," a pool of money that donors allow the umbrella group to spread among its members. More of the money United Way is raising now is being designated to specific charities, meaning less than usual - as much as $2 million to $3 million less - will be available for the "safety net," Walton said.
Chrysalis House, a drug and alcohol treatment center for women in Crownsville, is already preparing to take a hit. United Way funding makes up just 3 percent of its $1.2 million operating budget, but the $35,000 grant pays for much of the residential facility's operating expenses - and, more importantly, comes regularly and reliably, said executive director Lorene Lake. "It gives us the ability to manage" when other grants are late, she said.
Already, Lake has received a letter from United Way telling agencies to expect a 6.5 percent cut in funding for the coming year. "I'm hoping this isn't just the opening salvo," she said.
The fund-raising problems are not unique to the local campaign. Across the country, United Ways are reporting they will have a hard time meeting goals, said Philip Jones, a spokesman for the United Way of America.
"I think everyone will agree that this certainly is a challenging year," Jones said.
But in Central Maryland, Hrabowski said he is determined to improve the total.
"You can't afford to get discouraged," he said. "Why? Because the cause is noble."