United Way Feels Pinch of Slow Economy : Charities: The annual fund drive has been hurt because 23 businesses that gave last year have shut down or had big layoffs.

Stymied by a sluggish economy, fund-raising efforts for Ventura County’s United Way are lagging $800,000 behind expectations, and officials are worried that they will be forced to cut support to social service agencies.

Since mid-September, United Way volunteers have raised about $3 million--short of their $3.8-million midterm goal. Officials said they hope to raise $6.6 million by the time fund-raising efforts end in March, a 14% increase over the $5.8 million raised last year.

Last December, the local United Way chapter had already raised $3.5 million.

“It does scare us,” Executive Director Colleen M. Hunter said.

Contributing to the fund-raising problem is the fact that 23 businesses that gave to United Way last year have either shut down or laid off a large number of workers, a loss of 4,760 employees and possibly $343,000 in donations, Hunter said.

The largest loss came when the Newbury Park plant of the Northrop Corp. closed. The local office contributed $200,000 to United Way last year.

“We knew going into this campaign that it was not going to be easy,” Hunter said. “But it has been very difficult dealing with the individuals who have been laid off. We knew times were hard . . . going out and talking to people personalizes it.”

Recently, Clairol Inc. in Camarillo announced that it had raised $8,000 in pledges for the United Way campaign. A few days later, officials said they were closing down the plant.

3M Photodyne Inc., also in Camarillo, pledged $10,000 to the effort. Shortly after that, officials announced that the office was closing.

“We are running into a lot of companies that have less people or upcoming layoffs. We just can’t expect to raise as much,” said Barbara Barker, co-chairwoman of the fund-raising campaign. “People say: ‘I can’t ask my employees to have a campaign. I can’t do that to them.’ ”

But Barker said she urges businesses to try to find a way to give, even in the face of a plant closure. The people they lay off, she said, may be the ones who need the services the most.

As hard times keep a stranglehold on the county, demand for services from the agencies supported by United Way have increased dramatically, Hunter said.

The organization provides funding to 61 local agencies including the American Red Cross, Boys & Girls clubs, medical clinics, counseling services and substance abuse centers.

“Agencies are reporting seven to 10 times more clients are coming in for basic services” such as medical aid and food, Hunter said. In addition, the recession has placed more strain on people, prompting an increase in child and spouse abuse cases.

In addition, as the number of AIDS and HIV cases continues to increase, people are requesting more services from the county’s AIDS Care. The patient support agency received about $15,000 a year from United Way.

“This is the beginning of the real AIDS epidemic,” said Reese Welsh, executive director of AIDS Care. “But while the demand for our services is up, our fund raising is down. We depend on the United Way for stable money.”

Brian Bolton, the director of the American Red Cross in Ventura County, agreed.

“Our fund raising is down 10% from last year,” he said. “The economic climate is difficult for everyone.”

He said the Red Cross depends on United Way for 40% of its $832,000 budget.

“If they have a decrease, we feel it,” Bolton said. “It makes it harder to meet the needs.”

Hunter said officials will not know until March which agencies, if any, will have their United Way funds cut.

The county United Way’s problems are mirrored by its parent organization, United Way of America. “It’s a tight year,” Tony De Cristofaro, United Way of America’s chief spokesman, said in a telephone interview from Alexandria, Va.

“During the ‘80s, we were experiencing a real dollar growth of about 9%,” he said. “Now, we are looking at a growth of less than 5%. There are some cities that have not raised the same amount of money they did last year.”

While problems with fund-raising activities last year were confined to a few regions, this year almost everyone seems to be having problems, De Cristofaro said.

Some cities, like Cleveland and Cincinnati, have seen a drop in pledges compared with last year.

“The economy is having a greater impact,” De Cristofaro said. “The effects of the recession are spreading.”

But while overall fund-raising efforts in Ventura County are down, some companies have come through with more money than officials had expected.

For example, federal government workers so far have raised $1.16 million dollars, $100,000 more than their goal.

Also, officials say that 60 businesses in Ventura County that had not contributed to United Way before have agreed to raise funds from their employees.

“The issue is getting to those businesses who don’t run campaigns,” Barker said. “There are many affluent people who could afford to donate.”

Added Hunter: “We are hoping that those of us who are working will be more generous.”

United Way Fund Raising

Since mid-September, volunteers are short of their projected mid-term goal of $3.8 million.

Goal: $6.6 Million

To Date: $3 million