The Red Cross will lose $215,000 after the United Way Capital Area announced it will completely cut almost half of the funding they give to nonprofits.
Other organizations such as the Salvation Army won't lose all of their funding, but they taking a drastic cut. Last year the Salvation Army received $270,000; next year they'll get $65,000.
In all, United Way cut funding to 21 nonprofits that provide "basic needs" assistance to shift the focus to attacking the underlying issues that contribute to poverty.
"This is not a question of good agencies and bad agencies. They're all good agencies and if we simply had the money to fund all of them we would," United Way president David Balch said.
During a press conference Wednesday, Balch said the decision to cut funding to some was heartbreaking, but it simply came down to money.
"The bottom line is this community does not have enough money yet, from a fundraising standpoint, to meet all the demands," Balch said.
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Charitable giving
The city of Austin announced it will step in and help 21 nonprofits that had their funding cut by United Way.
 
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United Way will offer transitional funding and other ways to make up for the lost money. The city of Austin will also step in to make sure the funding cuts are made up for.
"We really are going to need to have a focused effort at the city. It may mean an emergency appropriation. It definitely means we are going to have a different approach to next year's budget," city council member Brewster McCracken said.
Balch also wishes more individuals would give to charities. A recent effort called "I Live Here, I Give Here" is trying to make up for the fact that Austin ranks 48th out of the 50 largest U.S. cities in per capita giving.
"We need to figure out how to engage this community, unite them to make a difference out there," Balch said.
The United Way is funding 14 new programs, including $130,000 for Goodwill and $90,000 for a child development center.
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Nonprofits that had their funding cut
American Cancer Society $50,000
Arc of the Capital Area $120,000
Austin Area Urban League, Inc. $45,000
Austin Children's Shelter $47,000
Caritas of Austin $72,000
Center for Child Protection $30,000
Easter Seals - Central Texas 30,000
El Buen Samaritano Episcopal Mission $40,000
Family Crisis Center-Bastrop $69,000
Girl Scouts - Lone Star Council $158,000
Highland Lakes Family Crisis Center, Inc. $30,000
Hospice Austin 55,000
Literacy Austin $42000
People's Community Clinic $105,000
Red Cross of Central Texas $ 215,000
SETON Healthcare Network Community Care $30,000
VinCare Services $30,000
Waterloo Counseling Center, Inc. $30,000
Women's Advocacy Project, Inc. $30,000
Wright House Wellness Center $30,000
YMCA of Austin 81,000
Nonprofits to receive first-time funding
AVANCE $30,000
Austin Families $60,000
Breakthrough $130,550
Businesses Invest in Growth, Inc. $100,000
Capital Investing in Development and Employment of Adults, Inc.
$80,000
Ebenezer CDC $90,000
Faith Presbyterian CDC $24,000
Goodwill Industries of Central Texas $130,000
The Care Communities (formerly Interfaith Care Alliance) $30,000
Trinity CDC $26,000
Williamson-Burnet County Opportunities, Inc. $65,000
WorkSource Board $75,000
Youth Launch $60,000
YWCA $20,000
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