Howdy!  I hope everyone had a delightful Thanksgiving!

If you (like myself) snuck in a bit of football watching on Thursday, you probably saw a United Way message being played during each of the pro games.  The halftime show at Ford Field in Detroit also celebrated the cause.  For years, the NFL and United Way have partnered to promote joint initiatives and bring visibility to one of the most vital non-profits in America.

As someone who is involved with The United Way (UW), I want to dedicate a post to what the organization does.  Chances are, there is a UW campaign at your office each year (if there isn’t we need to talk).  In orchestrating a few at my places of employment, it has become apparent to me that even though most people give every year, they do not necessarily know where their money goes.  Well, I am here to assure that your hard earned dollars are being utilized efficiently and appropriately.  However, as an informed donor, it is important to know why you give.  Here is a quick synopsis on how the UW operates.

National Structure

First of all, you probably give to a local branch of the UW.  Here in Birmingham, the United Way of Central Alabama (UWCA) runs its own campaign and is entirely self-supporting.  Although governed by the national organization (The United Way of America), very little of your donation (less than 1%) is actually designated for it and those NFL commercials.

Who They Represent

Quite frequently, I am asked, “How does a non-profit become a United Way agency?”  As you may know, not all charitable organizations fall under their umbrella.  Conversely, the audit process necessary to become a UW agency is rigorous enough to ensure that all funds and resources are being used appropriately.

Each year, all organizations receiving funding must justify their asks through a multi-step process.  In order to keep the allocations fair, balanced, and consistent with the concerns of the general public, the decisions regarding who gets what are dictated by local volunteers taking part in the “Visiting Allocation Team” program.  These teams are comprised of 600 of your peers, so if you are unhappy with how much they are allotting your favorite charity, then sign up to participate in this process next year.  The United Way of Central Alabama has approximately 80 partner agencies in 2009, and you can view their allocations here.

More Than a Middle Man

One of the uninformed criticisms of the United Way is that the organization is simply a middleman.  Why should you give money to someone who is simply passing it along?  I’ll give you a few reasons:  First of all, the UW provides more than just monetary assistance to their agencies.  They have a 2-1-1 hotline that helps match consumers with the care or assistance they require.  There are also a wide variety of essential programs orchestrated by the UW: from income tax assistance to after-school childcare, counseling and much more.

Another hallmark of the United Way is their extremely low overhead.  The UWCA is a five-star rated non-profit (the highest possible ranking) for their overall efficiency and impact.  This insures that your donation is utilized to the fullest.  If you need further proof: when Hurricane Katrina displaced thousands of people from the Gulf, the State of Alabama charged the UWCA with organizing the relief effort.  Simply put, they know how to get the job done with minimal resources.  Can your business do that?

Lastly, I give to the United Way because they distribute my money to organizations that need it most.  I am directly involved with several non-profits, and I give directly to their campaigns each year.  However, for all of those that I may be familiar with, there are plenty more whose needs are pressing.  The UW makes sure that your money does the most good.

How Much to Give

This is a tricky topic.  Unlike some companies, I do not agree with “mandatory giving” where a donation is automatically taken out of your paycheck.  This, in my opinion, kills the whole concept of spirited giving.  People should donate whatever they feel is appropriate and within their budget.  This being said, if you want to know the going rate, most employers consider a “fair share” to be about one percent of your after-tax income.  Some will give more, and some less, but this is fairly standard.  Any donation you can make is certainly appreciated!

Thanks for your time!  The United Way is near and dear to my heart, so I want to do my best to answer any questions you may have about the organization.  Just email me at matt@dogoodedness.com for further information.

If you or your company do not have a UW campaign and are interested in starting one, I will happily put you in touch with people that can make that happen.

DoGood!

matt