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Nonprofits that have relied on United Way funding to support their work are reeling from the group's decision to change how it funds community groups.

They are looking at cutting staff and services after United Way of Salt Lake axed contributions completely or by more than half.

"We were quite saddened to hear we weren't going to receive any funding at all. That's going to be quite a hit," said Erin Trenbeath-Murray, director of Salt Lake Head Start.

The group, which provides early childhood development programs, had received $100,000 for the past three years from United Way. Most of the money was used to extend the federally funded, half-day preschool program to a full day for about 220 families. That allowed parents without other day-care options to go to work or school, she noted.

The extended-day program will end in June because Trenbeath-Murry doesn't believe other donors will step up. The cut "means that a lot of parents that are in poverty and trying to climb out ... we won't be able to help facilitate that," she said.

On Thursday, the United Way board unanimously voted to focus more effort and money on certain low-income neighborhoods, believing they can have a greater impact on improving the health, education and financial well-being of the neediest people.

But the new direction — which also focuses on youth from birth to age 8 — leaves less money for groups that provide services outside the target areas.

"We love their work. We wish we could support it all," said Tom Love, United Way's board chairman.

But he said even if United Way had continued to fund a variety of groups throughout its service area — Salt Lake, Davis, Tooele and Summit counties — it has 20 percent less funding than in the past three years.

For the 2012 fiscal year, which starts July 1, United Way expects to raise $11 million. After subtracting fundraising and administrative costs, "pledge loss," and the $2 million that donors dedicate to specific groups, the agency will have $5.4 million to dole out, it says.

Some $3.3 million will be spent to create or expand centers in low-income neighborhoods, leaving $2.1 million for food, shelter, health and safety needs throughout the community.

And for the first time, United Way capped its allocation at $100,000 a year per group.

That means the YWCA of Salt Lake will receive only that amount next year instead of the $330,000 it got the past three years.

"We are really grateful for what we have received from United Way," said Anne Burkholder, chief executive officer. But "that is a hard loss for us."

It comes not only at a time fewer people are donating because of the economy, but after the YWCA expanded its domestic violence services, tripling bed capacity, she said.

Plus, the group is seeing more violence related to the recession: women coming in with worse injuries because they have stayed longer in abusive relationships and more child sexual abuse.

"I desperately do not want us to cut back on services," Burkholder said. "People are in danger when they come here."

United Way's contribution to Volunteers of America, which operates homeless and substance-abuse treatment programs, will drop from $267,000 to $100,000.

VOA President Kathy Bray said her $7 million budget may be better able to absorb the cut. But it nevertheless will likely result in layoffs and a drop in the number of people served.

She said nonprofits have known the change was coming, but it is still difficult to absorb. "We didn't think the cut would be this steep," Bray said. "We want to support the United Way in their efforts to build healthier communities."

The Boys & Girls Clubs of Greater Salt Lake is considering whether it will participate in the new neighborhood-based focus. It received an offer of $50,000 to work in Salt Lake City's Poplar Grove neighborhood — a $200,000 cut from last year.

"It certainly is going to be a challenge for us, and I'm sure for others, to try to secure additional resources to do what the United Way used to do for us," said CEO LeAnn Saldivar.

Pioneer Adult Rehabilitation Center will receive $25,000 — about $100,000 less. The money has been used mainly to help the mentally ill keep their jobs, by providing such support as transportation and coaching.

Executive director Robert Daniels said the cut means that fewer than 10 adults will get that help, down from 40 to 50.

United Way funds were "the safety net for an individual so they wouldn't lose their job and go on Medicaid," Daniels said. "We will be able to do a little of that, but it's almost like a token."