United Way finds fundraising success; other nonprofits wary of economy
Somehow, United Way of Dane County pulled it off. It boosted the amount of money pledged this fall at local workplaces to support social services, even as the national economy soured and sickened and infected Madison.
But the prospects for end-of-year giving -- a critical fundraising time for local service providers -- is murky as donors face the prospects of layoffs, investment losses and a gloomy economic outlook with no end in sight. Administrators of local nonprofit agencies are holding their breath, while philanthropic foundations take the long view. Some in the business of raising money for charities fear 2009 will be a very difficult year.
United Way, a local fundraising giant, resorted this year to new tactics -- including a motorcycle sweepstakes that had the campaign chairman riding into the celebration luncheon astride the prize Harley-Davidson -- and tapped 6,000 new donors to reach a projected $16.65 million in donations.
Movers and shakers in the local philanthropic community praise United Way's accountability in its allocation of the money raised and the generosity of the community with the success.
The economic climate for the campaign was grim, chairman Jim Riordan, president and CEO of WPS Health Insurance, told a gathering of 800 campaign celebrants at Monona Terrace Thursday.
"Companies moved headquarters outside Dane County and many were forced to downsize workforces," said a bike-leathers clad Riordan. "Some companies were deeply and immediately affected by the current economic situation. In times like these to raise the same amount would be a great accomplishment, but we knew this community would respond because these resources will attack the underlying causes of problems in this community," he said.
The campaign will gather a projected 4 percent more in pledges than it did in 2007.
"It was an amazing reaction from this community in tough economic times. At the time we set the goal no one anticipated the times we would be seeing today, and there probably is going to be even far more need than we anticipated," Riordan said.
Eileen Mershart, CEO of YWCA Madison, is not
yet sure what the response of her agency's supporters to the
economic downturn in the last few months will be.
Fundraising so far this year is at about last
year's level, but December is when many donors assess their
financial situations and decide on a gift.
"This last month will really tell the tale, because a lot of contributions do come in at the end of the year," Mershart said in an interview at the United Way bash. "So we're hopeful. This has been a very inspiring lunch, and I do think we have a very generous and giving community."
It's too early, too, to say how fundraising will wrap up this year for Community Shares of Wisconsin, a federation of the social justice nonprofit organizations, said Crystel Anders, executive director.
With only a 50 percent return so far on its campaign in private sector workplaces, results are similar to last year's, Anders said. "But that could change dramatically. By mid-December, we'll know more."
Results for member agencies' own campaigns are a mixed bag, Anders said. "Some of our members say the last quarter was very good," she said. "The presidential election may have a positive impact short term for social justice groups. There is a feeling of optimism."
Some national studies have reported a difference in giving between older donors, who give less because of concern over losses in the stock market, and younger donors, who may give more because of a sense of optimism about the future, she said.
A few major donors have indicated to Community Shares that they won't cut back, but will not be able to increase their gifts this year, Anders said.
"How long term that will be depends on how long the economic downturn lasts," she said.
"There is more concern for fundraising in 2009," she said.
"We want to ensure that all nonprofits have successful annual campaigns this year," said Kathleen Woit, president of the Madison Community Foundation. "So we're encouraging people to not necessarily set up permanent funds with us right now."
The foundation, a community trust that facilitates and manages long-term philanthropy, established 75 new, but smaller, funds this year, Woit said.
"We are in a holding pattern," Woit said. She estimated that the foundation's portfolio of investments representing its permanent funds is down some 25 percent. But with an endowment that covers operating costs on which a close eye is cast, "we'll do OK. We're set up for the long run."
"It seems to me in listening to people that they are contributing their regular annual support gifts, but the capital campaigns for which people need to raise many large gifts are slowing down," Woit said. "People are waiting to see what they have for major gifts."
"There can't be anyone who is not alarmed over every aspect of the economy," she remarked. "But the people in Dane County support charities and understand how charities work. I'd rather be in Dane County than almost anywhere else."
Woit's comments in an interview were imbued with the same heartening pride that inspired United Way president Leslie Ann Howard to tell the crowd of supporters at Monona Terrace:
"If you have any concern for the future of our community, I don't, because of you. You've made an investment in the future of our community."
Pat Schneider/Capital Times
Loaned executives, whose time toward fundraising is donated by local businesses, reveal the projected total of the 2008 United Way of Dane County campaign -- $16,652,011 -- Thursday at a celebratory luncheon at Monona Terrace.
