United Way of Central Maryland faces $3 million deficit

Cash flow problems at the United Way of Central Maryland have prompted layoffs and a string of delayed grants to nonprofits that were promised them in the spring.

That’s because the organization, which works to improve the lives of residents in the community through education, health and financial stability initiatives, is experiencing a financial deficit, according to the nonprofit’s president and CEO Franklyn Baker.

Grantee and other outstanding payments, he said, will be made by the end of the month.

Many nonprofits are navigating “unprecedented economic challenges” around the country, and his organization is one of them, Baker said in a statement Thursday. While community needs in the region grew during the pandemic, “pandemic-era funding did not.”

“Faced with more limited resources, we implemented staff reductions and other organizational efficiencies as part of a broader restructuring focused on strengthening our financial foundation, improving efficiency, and maximizing community impact,” he said.

The organization’s deficit is about $3 million, Baker said in an interview Friday, and 11% of the staff — 20 people — have been laid off. He said that nonprofits regularly deal with an ebb and flow of cash each month, and that he’s confident the gap will be closed by next year.

He called layoffs “one of the most difficult things to do as a leader in an organization” and described the deficit as a “challenging period of cash flow.”

“We will continuously, in the best way we can, maintain high levels of responsible stewardship of the donor dollars,” he said.

In a letter sent to United Way’s partners, Baker explained some of the cuts. It included no longer managing call operations for Maryland’s 211 service, a helpline for food, housing and utility assistance, in the Central Maryland region. The nonprofit will still help fund the service and maintain the call center’s data but Community Crisis Services Inc., a food assistance nonprofit, will take over call intake.

United Way is an international nonprofit with 1,800 affiliates around the world. Its mission is to advance the common good by mobilizing others to donate, volunteer and advocate for others in the community.

In December, the Central Maryland affiliate opened applications for its United for Good Nonprofit Resiliency Grants. The goal was to provide relief to people and nonprofits that were impacted by the government shutdown and overall economic instability.

“To help meet these challenges, 501(c)(3) nonprofit organizations with annual operating budgets of $5 million or less that support the basic needs of families and individuals in Central Maryland are now eligible to apply for grants ranging from $2,500 to $25,000,” a December press release stated.

The grant was awarded to 28 nonprofits in Baltimore City as well as Anne Arundel, Baltimore, Carroll, Harford and Howard counties. While some groups, like Baltimore’s Adopt-A-Block and City of Refuge have received their grants, others did not.

The Women’s Housing Coalition, a Baltimore group “dedicated to breaking the cycle of homelessness,” was told in April that they would receive $25,000, said Beth Benner, the group’s executive director.

“On June 4th, we received an email stating that they were behind in distributing our grant payment by the last week of June 2026,” Benner wrote in an email Thursday. “We have not received it as of yet.”

HOPE For All, a Christian ministry that donates clothes and household items, and CASH Campaign of Maryland, which promotes economic advancement for low-to-moderate income individuals and families, also did not yet receive funding, they told The Banner.

“Some United for Good grantee payments have been delayed due to cash flow timing,” Baker said. “We have worked through this and all outstanding payments will be made by the end of this month.”

According to 2025 tax forms, United Way of Central Maryland brought in over $33 million in revenue. However, its revenue was nearly twice as high during the 2023 fiscal year and over $88 million in fiscal 2022. That year it received over $63 million in federal grant revenue. Baker annually makes about $392,000, the latest tax forms show.

Catherine’s Family and Youth Services, a nonprofit serving Northwest Baltimore, said they received their United Way grant money and it’s already making a difference.

“We are able to move forward with our project to enhance our food and diaper hub distributions that we host monthly that draw nearly 750-1000 families in great need of access to food, resources and baby essentials,” Valarie Matthews, the group’s executive director, wrote in an email.

This story was updated to correct United Way's involvement with the 211 helpline. The nonprofit is still providing funding to 211 but is no longer managing call intake.