The United Way of Central Maryland is sweetening the deal to encourage more businesses to support their local nonprofits.
“The biggest need we have is getting more companies involved,” said Larry Walton, president of the United Way of Central Maryland.
The group has increased the amount of money local United Way partnership boards receive from businesses holding their first fundraising campaigns.
The boost to the New Business Incentive was one a few changes United Way made in response to concerns over funding levels.
Frustrated by funding cuts and a lack of input from local United Way boards, Howard County Executive Ken Ulman earlier this year threatened to form a rival organization to United Way.
Howard created a task force to address the concerns, resulting in several proposed changes, to which United Way agreed.
Under the business incentive program, local boards can keep 75 percent of the money raised the first year of a new business fund drive. The second year, the boards keep 50 percent, and 25 percent the third, Walton said.
The remaining money, and all the funds after the first three years, go to the general pool United Way distributes around the region.
Previously, local boards got only a one-time share of 50 percent of new campaigns, said Susan Rosenbaum, director of Howard?s Department of Citizen Services.
“They can keep companies at all three of those levels every year,” Walton said.
In Howard, 18 percent of businesses with at least 50 employees participate in United Way fundraising, so regionally there is a large pool of untapped financial resources in businesses, he said.
United Way also doubled each area?s discretionary funds, which help pay for emergency needs throughout the year. In Howard, Baltimore and Anne Arundel, this fund was increased to $76,000, and in Carroll and Harford, the fund is closer to $56,000, Walton said.
Local human services directors also will have more input on funding through meetings to address local needs.
Ulman this week said he supports the changes. He encouraged more businesses to participate, saying, “that is the only way this new revised plan will work.”
