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Frequently Asked Questions: Discontinuation of Funding by the United Way to The Salvation Army of Greater Philadelphia

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Released 12 September 2008

UNITED 
WAY CUTS FUNDING TO THE SALVATION ARMY: FAQs

When did The United Way of Southeastern Pennsylvania* notify The Salvation Army of Greater Philadelphia of its decision to discontinue funding?

June 2008.

What is the size of the reduction?

As recently as 2006 The Salvation Army of Greater Philadelphia received $1.2M from the United Way of Southeastern PA (UWSEPA).  In 2007-2008 this was reduced to $879,000, following a long-term trend of declining allocations to The Salvation Army that is common across the country.  In recent years, the cuts have been more severe.

The Salvation Army was notified in June that it would not be funded for the 2008, 2009 and 2010 fiscal years (the United Way's grantmaking cycle). Instead, the UWSEPA's Board of Directors awarded the Army and other eligible defunded organizations a one-time $300,000 "transition grant."  The transition grant is distributed on a monthly basis and final payment is scheduled for November 2008.

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Why has the United Way of Southeastern PA discontinued funding The Salvation Army of Greater Philadelphia?

Of the $54 million raised by the United Way during its most recent campaign, $11 million was allocated to non-profit organizations "who help the United Way further its community impact agenda." Of this $11 million,the United Way decided to allocate only approximately 10 percent to safety net organizations like The Salvation Army. The United Way's website notes the organization is "shifting its focus towards prevention-giving people the tools to build stable lives for themselves and their families so they don't fall into the safety net in the first place."

The United Way is focusing its grantmaking in three specific areas:

  • Preparing children to succeed in school and in life

  • Building financial stability and independence for families

  • Keeping seniors healthy and safe at home
The United Way is now (1) focusing its giving priorities on more narrowly defined program categories, with an emphasis on single-purpose organizations, (2) opening up its allocations to many new organizations, and (3) as explained above, decreasing the percentage of funds it allocates to safety net services like emergency assistance.
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Does this decision by the United Way mean The Salvation Army is not delivering high quality services?

No. When announcing the organizations chosen for financial support the United Way said: "As a consequence of our more focused agenda and of opening up our process to competition from throughout the region, operating support for a number of strong, high-quality organizations that had been funded by United Way for many years will be reduced or eliminated. That an organization is not receiving funding through this process is in no way a comment on the quality of that organization."
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Didn't the United Way give The Salvation Army notice that these changes were coming?

The United Way has been transitioning from its decades-old model of working with community partner organizations to functioning essentially as a community foundation for a number of years. The Salvation Army, which had achieved the highest "Community Impact Partner" status through UWSEPA's new agency review process, actively participated in meetings to provide input as the United Way changed its application and evaluation process and community impact priorities. The Salvation Army respects the United Way's prerogative to move in new directions and change to its processes and funding priorities. It obviously deeply regrets, however, the United Way's decision to discontinue our decades-long partnership in positively impacting the lives of those needing emergency support in our community.
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Is The Salvation Army the only agency defunded by the United Way?

No. The size of The Salvation Army's funding elimination is probably the largest (by virtue of previous allocation size), but other organizations have also been defunded, including Boys and Girls Clubs of America, the YMCA, Girl Scouts, Settlement Music School, Urban League, Germantown Settlement, Big Brothers Big Sisters, and others. Approximately 33 organizations, including some, like The Salvation Army, who helped to establish the original United Way and had been partners for decades, were defunded.

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How long has The Salvation Army been supported by the United Way?

Since the early 1900s. The Salvation Army was a founding member of the United Way.
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What does this loss of funding mean for The Salvation Army?

The operating budget for city services is approximately $6 million. The loss of nearly $900,000 in United Way support translates into a 15% loss in operating revenues. The Salvation Army allocates 91 cents of every dollar directly to programs benefiting needy families, maintaining a very low administrative cost. Because our resources are already stretched as far as possible to "do the most good" in people's lives, we are unable to absorb major funding cuts, which unfortunately have an immediate impact on the level of services provided and on staffing.

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What effect has this had on services offered by The Salvation Army?

The Army is no longer able to provide utility assistance, help with rent, food, and clothing to hundreds of needy individuals and families on a daily basis at five community centers. Thirteen caseworker and child care positions have been eliminated, and we have had to close our child care program in Darby, Delaware County.
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How many people in need are affected by the United Way's decision?

The Salvation Army serves tens of thousand each year in Philadephia. One recent indicator of need is that, as of late August, approximately 100 people per day are turning to The Salvation Army at our central divisional headquarters location seeking food and other forms of emergency assistance, but we simply do not have the funds to provide this help or to cover the salaries of the case workers responsible for providing assistance. We are experiencing similar levels of requests at our four other neighborhood-based centers where we were forced to eliminate staff and emergency case work services. The loss of United Way funding for these vital emergency services is having a devastating impact on many of the most vulnerable members of our communities.
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Does this mean that The Salvation Army is no longer helping people with their basic needs?

No, The Salvation Army continues to provide a comprehensive range of emergency supports as well as preventive and character-building programs for all ages through nine community centers and eight residential programs in Philadelphia. We provide shelter; counseling; food; drug rehabilitation; in-home support, community integration and job coaching for developmentally disabled adults; emergency / disaster response; before- and after-school programs and summer day camp; summer camp in the Poconos; child care; job training in the culinary arts; life skills development; parenting education; community service projects; Christmas assistance (toys, food); senior citizens programming; music, film-making and dance education; sports and recreation; spiritual programs; and more.

Unfortunately, the severity of this cut from an $879,000 allocation to zero means we simply can not afford to provide all of the front line emergency assistance very much needed in the neighborhoods where we are located. Should we receive new and increased private, corporate and foundation contributions, we hope to restore some or all of these safety net services in the future and as quickly as possible.

Thanks to a $50,000 challenge gift from the Sheller Family Foundation, The Salvation Army is able to restore emergency assistance and casework services at one community center location for several months. With this generous gift the Sheller Family Foundation is providing a challenge to the community to raise an additional $100,000 to restore these services at this one location year-round. To accept the challenge call Chaz Watson at 215-787-2842.

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Why should I support The Salvation Army in particular? There are so many good organizations out there.

For those who want to maximize their charitable impact in people's lives, The Salvation Army represents one of the best investments you can make. 91 cents of each dollar you contribute to The Salvation Army will be applied to programs and services that directly help those who are most in need.

The late management expert Dr. Peter Drucker stated the following:

"The Salvation Army is by far the most effective organization in the U.S.. No one even comes close to it with respect to clarity of mission, ability to innovate, measurable results, dedication, and putting money to maximum use."
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How can I help?

  • Make a secure credit card donation on-line by clicking here
    or by calling (215) 787-2847.

  • Checks payable to The Salvation Army of Greater Philadelphia may be mailed to:

    The Salvation Army of Greater Philadelphia
    Attn:  Development Office
    701 N. Broad Street
    Philadelphia, Pennsylvania 19123

  • Designate all or a portion of your United Way workplace contribution this year to The Salvation Army of Philadelphia... Agency #107.
  • Consider a year-end gift of stock, making a charitable impact while reducing your taxes. Please call 1-800-262-2523 for wire transfer instructions or to have your questions answered.
  • Consider a planned gift, such as a charitable gift annuity, charitable remainder trust, or bequest commitment, that will help the Army strengthen its long-term financial sustainability by building up its program endowment and capital reserves for pressing needs. Please call 1-800-262-2523 for a confidential, no obligation discussion with our planned giving specialist, Mr. Jerry Rohrbach, and he will be glad to provide further information.

For more information please contact Mr. Chaz Watson, Director of Development, by calling
215-787-2842.

* All information regarding the United Way is available via www.uwsepa.org.

 


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