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 sign ificant changes in its methods of funds distribution. These structural shif ts in the Washington, D.C.-area United Way campaign created an environment of increased fiscal and organizational pressure for nonprofits as many scra mbled 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 environmen t associated with changes in the United Way campaign. Half of the groups su rveyed experienced moderate or large cuts in the amount of funds they recei ved through the United Way. Yet, a majority of the organizations that exper ienced cuts were able to adapt in ways that allowed them to maintain servic e levels. A number of these adaptations involved attempts to manage the env ironment in a manner consistent with resource dependency theory.