The effects of expanded donor choice in United Way campaigns on nonprofit human service providers in the Washington, DC, metropolitan area

In January 1994, the United Way of the National Capital Area announced significant changes in its methods of funds distribution. These structural shifts in the Washington, D.C.-area United Way campaign created an environment of increased fiscal and organizational pressure for nonprofits as many scrambled to make up lost ground. This article reports the findings of a survey sent to 258 D.C.-area nonprofit service providers. The survey was designed to determine how nonprofits adapted to changes in their funding environment associated with changes in the United Way campaign. Half of the groups surveyed experienced moderate or large cuts in the amount of funds they received through the United Way. Yet, a majority of the organizations that experienced cuts were able to adapt in ways that allowed them to maintain service levels. A number of these adaptations involved attempts to manage the environment in a manner consistent with resource dependency theory.