United Way of the Bluegrass facing $500,000 shortfall. Agencies warned of big cuts.

United Way of the Bluegrass faces a $500,000 shortfall and could cut each of the 140 programs if funds by up to 20 percent if more money is not raised by July 1, officials are warning.

The United Way has seen a decline in workplace giving over the past several years. Instead of cutting funding to its agencies, it has tapped reserves and investment income to offset that drop. But the fundraising organization can no longer make up the difference, United Way officials said this month.

In early March, it sent emails warning about the shortfall to all 83 nonprofits that receive United Way funding for 140 programs. If the United Way can not raise the $500,000 by July 1, those agencies should expect a cut of between 15 and 20 percent.

Some of the agencies and programs the United Way helps fund include the Salvation Army of Central Kentucky, which runs a shelter for women and children and after-school programs; and Big Brothers Big Sisters of the Bluegrass. Funding supports programs in Anderson, Bourbon, Clark, Fayette, Jessamine, Madison, Montgomery, Scott and Woodford counties.

“It’s not too late to unite for our community. We will continue to work tirelessly to raise support for local partners serving the most vulnerable families and children in our region — but today we are asking for your help,” said Bill Farmer, president and CEO of the United Way of the Bluegrass. “United, we can fight for the basic needs, education and financial stability of every person in Central Kentucky.”

Katie Williams, vice president of communications for United Way, said agencies will be notified by early to mid-June if there will be a cut on July 1.

According to its 2016 tax forms, it raised $5.9 million and gave $2.6 million to partner agencies. Some of that $5.9 million was grant and other money earmarked for United Way-run programs such as 2-1-1-, which refers people to services. For the fiscal year that ended June 30, 2017, the United Way reported raising $5.0 million and gave $2.2 million to partner agencies. Agency officials said the public fundraising campaign raised $3.5 million that year. The remaining $1.5 million was raised from grants and other money.

Farmer, who is retiring next month, said the workplace-based annual giving campaign has declined over the years for a variety of reasons. United Way groups across the country are facing similar challenges.

A decade ago, United Way campaign volunteers would visit an office, give a short presentation and workers would then fill out forms with either a one-time donation or payroll deductions. Now, giving is done online or via computer. Many people don’t want to do that, he said.

It’s also hard for United Way volunteers to talk to workforce employees in one setting because of changes in workplace hours.

“We are also facing more competition in the fundraising marketplace,” Williams said.

With unemployment in Fayette County hovering under 3.5 percent, many people think there is less need for services.

That’s not true, Farmer said.

“What we have are the working poor,” Farmer said.

In 2014, United Way of the Bluegrass set a goal of making 10,000 families self-sufficient by 2020. They have exceeded that goal with 14,000 self-sufficient families, he said, but have set a new goal of helping 20,000 families by 2020.

“We are the victim of our own success,” Farmer said.

To donate, people can text UWBG2019 to 71777, or visit www.UnitedWeFightBG.com.

This story was originally published March 28, 2019 at 11:26 AM.