Last year the Summit County United Way raised more than 11 million dollars, but more than a million went to fundraising and the finance, accounting and marketing expenses called "back room" costs. Summit President Bob Kulinski says it's those back room expenes a consultant to be hired by the Akron, Cleveland and other area United Ways will address.
Kulinski: "That means less going for duplicative overhead operations and more for unique programs in each community, So I think by and large our donors and our business community get it and support it."
The consultant will be paid 70 thousand dollars, which Kulinski says will not come from pledges. He adds that whatever consolidation the agency agrees to will not be attained through job cuts. However, approximately 38 employees of the 17 agencies whose jobs are designated as "back room" positions would likely not be replaced if they left.
Kulinski "Surely we would need fewer of those. On the other hand maybe we'll need two more donor choice specialists. I don't know long term what that would look like, but I think everyone would be disappointed if we weren't able to streamline the operation."
Charities have been under pressure to figure out ways to stretch resources for years -- but the problems were magified by the increase in fundraising after 9/11. In a failing economy with gas prices on the rise, the problems haven't abated. Stone Payton, a Colorado corporate consultant, says he gets requests for proposals from more and more nonprofits.
Payton: "I think there's certainly that aspect of donor fatigue, so there's increasing pressure on the donated dollar. They are taking a very serious look at what do I need to do, what do they need to do to restructure. If that means outsourcing some of these other functions, and if that means substantially shifting the way that we conduct our work we want to seriously entertain that."
A year ago, area Red Cross chapters were ordered to find a way to consolidate expenses. In Medina County, the Red Cross was already sharing office space and support with other social service agencies, including the United Way. Executive Director Beth Kilchenman says she now pays the Summit County Red Cross for financial help on her annual report -- expertise she doesn't have in-house.
Kinchenman: "The main thing is we know that there is a lot of us out there, and we're all asking, and we all know the public only has so much to give.All of us are looking for ways to maximize the use of the dollar that is donated to us."
Kinchenman says the important thing is save enough money on nonessentials so that offices are still located in the community.
Kinchenman: "You can't live real far away and try to take care of house fire victims."
The United Way is expected to receive proposals from consultants by July 1. A report on ways to combine area services should be completed by the end of the year.
Kymberli Hagelberg, 90.3