United Way Takes Steps to Combat Expected Deficit

Facing a financial crunch from unpaid pledges and sluggish donations, United Way of Ventura County issued a call to arms Thursday.

United Way plans to lobby its most loyal donors and work to generate new ones to forestall the threat of a deficit that could grow to $300,000 by mid-1998, said spokesman George Phillips.

Unchecked, the deficit could greatly hamper United Way’s power to support 50 agencies, which range from counseling services and shelters to food pantries and small nonprofit charities, he said.

“We see a problem on the horizon, and we’d rather change course and avoid it than run into it,” Phillips said Thursday. “Obviously, by having a very successful campaign, that’s the best solution, and it works out best for the community. We avoid looking at a deficit, and we’re able to support services that are needed out there.”

United Way reached its 1996-97 pledge goal of $5.35 million, he said. But the umbrella charity is projecting a 14% rate of unpaid donation pledges--up from the 8% rate of unpaid pledges three or four years ago, he said.

United Way also lost some momentum last year when a few companies decided to pay gifts directly to the recipient agencies instead of donating through United Way, he said.

Several top United Way board members are making personal sacrifices and are donating part or all of their salaries back to the charity to fill the void left by the resignation last month of Ernest Thurmond, United Way of Ventura County president, he said.

This year, board member Cathy Brudnicki gave up her board role and put her insurance business on hold to take the job of acting chief administrative officer, at about two-thirds of the monthly $6,250 salary earned by Thurmond.

Roy Oliver and Spencer Garrett volunteered to fill the post of chief financial officer at no cost to United Way, which otherwise would have had to pay up to $57,000 for those services, Phillips said. Garrett is the general partner at Pierpont Racquet Club in Ventura, and Oliver recently retired his post as partner in charge for compensation and benefits at KPMG Peat Marwick.

United Way also will be asking its usual donors to make bigger, earlier gifts and to recruit new donors to help boost the proceeds, he said.

As of Thursday, United Way had $275,975 in its accounts, but was making plans to campaign hard for bigger gifts in the 1997-98 fund-raiser, Phillips said.

Without donors’ help, he said, some agencies will suffer. “They operate on such shoestring budgets,” he said. “Suppose they lost $1,000 from United Way. That $1,000 is going to represent some direct services to somebody. It might be counseling, it might be food, it might be shelter. Even though they’ll be survivable cuts, they’ll be quite serious.”