United Way

One of the mainstays of the American fundraising landscape is the United Way. The initial purpose of the United Way was to have a combined volunteer based fundraising in the workplace and community for all member agencies. Member agencies provided a range of services from aid to the elderly, to health education, to youth and seniors recreation to fighting poverty to helping to sustain those caught in the grips of poverty. Regardless of one’s two or three philanthropic issues, there were several organizations, both small and large, that were addressing those issues.

Combining resources allowed smaller organizations to be supported and have their organization become known in the community via the combined effort. The United Way allowed small and medium organizations to have a reach into the community, marketing as well as financial, that was beyond their capacity and capabilities. The United Way workplace giving program allowed all employees to be solicited once a year in the work place by their peers. Individuals could give a one time gift or they could arrange for an amount to be deducted from each paycheck.

Though individuals could designate their gifts to a handful of groups if they so wished, most gave to the United Way in general as through it they could help support a range of their philanthropic and community interests. Employees liked the breadth of organizations and causes. They also loved the idea of giving $10 or $20, or $50 a pay that they would never miss and have it add up over the year to something much more significant than if they had to cut a single check. Employers liked having only one annual campaign. Small and moderate sized organizations liked the process as it extended their reach into the community and helped raise more funds than they could competing against hundreds or thousands of other organizations.

Undesignated funds were allocated in grants to a host of its member organizations. The amount granted was based upon balancing the amount raised against the budget of the organization, nature of the programs offered by the organization and the scope of the services provided. Volunteers from the community sat on panels, reviewed requests, listen to presentations and then decided what to award. Though the process involved tough decisions, and though rarely did a member receive its full funding request, most member agencies felt it was on a whole a balanced and fair system. As agencies and volunteers had confidence in the fairness of the system, the United Way was held in high regard which made for a relatively easy solicitation process.

For the last ten years the beloved system has been changing into a system that moves directly away from its roots. The United Way is moving to become a super-foundation with a narrow focus. It’s goal is to fund only programs that provide meaningful results in three areas, a) improving health, b) lowering school drop-out rates, and c) fighting poverty among low-wage workers.

The United Way started to make these changes because income has decreased and people are expecting a greater level of accountability. Donors are looking at making a difference and the United Way believes it is better to make a difference in a narrow scope of issues rather than provide meaningful assistance across a broad array of issues.

Some organizations while providing the same services are rewriting their service descriptions and counting their statistics differently in order to retain funding. Other organizations are receiving a significant increase in funding since they are focused in that area. Other organizations such as those who provide shelter and food, or who provide clothing to the poor, or who help shelter fire victims or provide latch key programs to keep children safe and out of trouble will no longer receive support. A latch key program in an impoverished area with high drop-out rates may well receive funding if it has a strong tutorial program and mentoring program that are designed to help keep teens from dropping out of school.

The three priorities will eventually change. Lowering school drop-out rates is a hot issue today but in seven or ten years, if it is not a hot issue it will no longer be a funding priority. It does not mean that the fighting drop-out rates will be no less important to the social fabric of the community, it just means that it is no longer a hot issue that can be used to secure donations. In other words, the United Way funding priorities are chasing the easy money.

I liked the old United Way. I could give to my environmental and poverty causes through the United Way. I enjoyed learning about small organizations that were making a difference, like the one in DC that trains cooks for local restaurants. I could support that organization. I could have a nice amount deducted from my pay that would help a host of organizations. I liked being able to support a group that had a five year goal to clean up a local creek and develop a walking trail along a three mile stretch. Becoming aware of such organizations, let alone giving to them via the United Way is no longer possible.

The United Way has changed. Its funding priorities do not match my philanthropic interests. As such, I will not be giving to the United Way this year.