Projo 7 to 7 News Blog

PROVIDENCE, R.I. -- Even the United Way, an organization that helps the hurting, is now feeling the economic pinch.

The United Way of Rhode Island announced Tuesday it had laid off eight employees due primarily to the loss in value to one of its major investments -- used specifically for administrative expenses -- the Rhode Island Charities Trust.

The agency also lost income from its mining of clay, a business operation bequeathed to the United Way by Textron founder Royal Little.

The cuts leave the United Way with 42 employees.

While contributions to the United Way are down only 2 percent, those funds have historically been reserved to provide services to the needy and cannot be used for administrative expenses, said United Way spokesman Alan Neville.

Half of the job cuts are coming by merging the United Way's Public Policy and Community Services departments. The four other cuts are coming from the elimination of one job each in communications, technical support, labor and research and development.

Anthony Maione, United Way president, said in a statement, "... We are taking these proactive and fiscally responsible actions to avoid using donor contributions to support fundraising and administrative expenses ...''

 Tags  economy Rhode Island

Comments

Paul said:

maybe the presedent should make less money per year and save a few jobs

Link | June 10, 2009 11:20 AM
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