Merrick Community Services has unveiled a new logo and website touting its nonprofit community roots — caring for St. Paul's East Side since 1908 — and a menu of services, from a food shelf to career counseling.
The idea is to draw attention, share its work and step out of the shadow of Greater Twin Cities United Way, which channeled money its way for years. With United Way's revenue down by nearly $25 million in three years, organizations such as Merrick are learning they have to make their own pitch to a broader base of donors or risk cuts to services.
"We are looking for ways to diversify our funding," said Brandon Griffin, director of development at Merrick, which used to get a quarter of its $2 million annual budget from United Way. That aid has been cut in half in the past decade. "It's hard. It's a very different landscape."
United Way has been a giant in charitable fundraising through its workplace campaigns for decades; its Twin Cities chapter is one of the largest in the nation. Smaller nonprofits have relied, in part, on its grants rather than competing for donors' attention. Now that model is under stress as United Way's giving at the office campaign falls out of favor with donors, who are turning to new tools, including online giving and donor-advised funds.
"People seem to have a more vested interest in controlling their money," said Patina Park, executive director of the Minnesota Indian Women's Resource Center, which decided to rely less on United Way grants after seeing others struggle with cuts.
United Way's revenue has dropped from $101.9 million in 2014 to $77 million last year. The drop in available grants has shaken the Twin Cities' huge nonprofit sector.
Greater Minneapolis Crisis Nursery has lost more than half of its United Way funding this year. In St. Paul, Neighborhood House's United Way grants dropped by $126,000. Phyllis Wheatley Community Center in north Minneapolis has lost a third of its United Way funding in three years.
United Way officials say their role has evolved from simply a grantmaker to public policy advocate, with emphasis on programs for children, immigrant families and job training. They are also trying to broaden their fundraising.