United Way Agencies Due 10.5% Cuts

United Way of Orange County announced Thursday that the agencies that look to it for money can expect a 10.5% funding reduction during the first six months of 1987 because of the $2.5-million shortfall in this year’s $19-million fund-raising drive.

Merritt L. Johnson, president of the county United Way, said the 123 agencies will receive $681,727 less than they did last year. Three agencies that joined United Way in 1985 and have two-year funding contracts will not be included in the across-the-board 10.5% cutback, he said.

United Way had hoped to collect $19 millio n this year, an 8.6% increase over the $17.5 million raised last year. United Way officials have blamed the failure to reach that goal on a shift in the economic climate and a tainted public image resulting from a controversy involving loans by the Los Angeles United Way organization to five of its top employees.

Collections Fell Short

The Orange County organization was the fastest-growing United Way in the country from 1975 to 1985. However, last year only $17.5 million of the $18.4 million pledged was actually collected. This year, only $16.5 million was collected, 14% less than the goal.

This will be the first time that agencies depending on United Way of Orange County have received a net decrease from one year to the next in their funding. Last year they got a 7% increase, though a 5% cut was initiated at midyear when pledges were not fulfilled.

David Carroll, Pacific Bell area vice president and chairman of the 1987 fund-raising drive, said United Way would devise new formulas for next year’s campaign.

“We want to start with restoring the cuts,” Carroll said.

He said the number of volunteers working in fund-raising activities would be increased about 30% from the present 2,000 for next year’s drive. He also said he would set up geographic divisions to identify and broaden the United Way’s base of support.

Carroll added that a general plan would be devised to help United Way get more support from small businesses. More than 90% of United Way contributions currently come from large corporations and their employees.

‘Not Very Aggressive’

“We have not been very aggressive with new, small companies. We have not done enough to shake the bushes to find contributions,” Carroll said.

Johnson, who stressed that reversing United Way’s downward spiral was essential to next year’s campaign, said the agency also must begin “linking” with local chambers of commerce to find smaller businesses that will make contributions.

“We have to get back to the basics, get back to working in the communities,” he said.