By Shavonne Potts
spotts@salisburypost.com
Many organizations have been hit hard during the recession, and the Rowan County United Way is no exception.
The agency’s recently submitted 990 tax forms show the percentage of its funds spent on fundraising and administration in 2008 was 12.7 percent.
The previous year, that percentage was 7.7 percent.
Lower donations in 2008 are the main reason for that change, United Way officials say.
“We have changed nothing here at our office regarding salaries, expenses, etc.,” Jackie Harris, campaign and marketing director, said in an e-mail. “… However, we have lost so much revenue due to companies closing, layoffs and earnings being down.”
Over the past five years, the agency has averaged 9.9 percent in administrative and campaign costs, said Treasurer Guy Hoskins.
“It’s difficult to look at any one period and stake your claim on it,” Hoskins said. During the year in which costs were below 8 percent, he said, Food Lion made a special gift that was a big boost.
“Here we are in this economy, and the pledges come down,” he said.
The Rowan United Way’s average of 10 percent in administrative and fundraising costs is low compared to most nonprofits, Hoskins said, because so many volunteers work on the campaign.
“That’s incredibly powerful,” he said. “If you can net 90 percent, you’re doing darn good.”
In 2007, the United Way’s total revenue was $2.55 million, with administrative and fundraising costs of $197,593.
Revenue fell by nearly $600,000 in 2008. The agency’s latest 990 shows administrative and fundraising costs of $248,442 and revenues of $1.95 million.
Alan King, 2009 campaign chairman, said the 17 United Way agencies face great needs.
“My primary concern, if there is one, is the fact that we had less revenue to give to our agencies,” King said. “We need to work even harder to continue to provide to our agencies.”
King said the staff is making efforts to save any way they can.
“I think our people are working extremely hard with a small staff,” he said.
Harris said changes in expenses on the tax form came from increased accounting fees, changes in IRS rules concerning dues, and the inclusion of the car giveaway as a fundraising cost.
Local United Way agencies are Abundant Living Adult Day Care, Rowan County Literacy Council, American Red Cross, The ARC/Rowan, Rowan Vocational Opportunities, Boy Scouts, Communities in Schools, Girl Scouts, YMCA, Rowan County Rescue Squad, The Salvation Army, Rufty-Holmes Senior Center, Meals on Wheels, Adolescent & Family Enrichment Council, Family Crisis Council, Rowan County Youth Services Bureau and the 211 information service
Elizabeth Cook contributed to this story.