United Ways Should Not be Toaster Ovens
Can you picture a toaster oven? The first and only toaster oven I can think of is in our vacation cottage. It is small, just big enough to toast two slices of bread side by side or reheat a single slice of pizza. It looks like it came from the 1980’s or even the 1970’s and despite the historical look, it still works. You open the glass front door, throw in whatever you are toasting or baking, turn the knob to whatever seems to be the right setting, and wait for it to ding. I have found it impossible to predict when it will ding as it seems to have a mind of its own. I am also amused when it toasts the first two slices of bread perfectly, while it scorches the second two slices of bread on the same setting for some reason.
Most United Ways are like toaster ovens. They try to raise as much money as they can for partner agencies and funded programs, while also trying to make meaningful community impact addressing things like education, income, and health. Just like toaster ovens, United Ways have a limited capacity to raise money to fund programs and limited capacity to create meaningful community impact. When United Ways try to raise money and create community impact, they can do both, but there are always compromises.
For example, United Ways often raise money to fund a lot of programs – think of the phrase “a mile wide and an inch deep” which means it is really hard to find any kind of measurable community impact. Community impact ends up being statements like “In 2016, $898,368 was invested in education, income, and health programs.” Donors know their United Way contribution funds programs and that their contribution was invested in education, income, and health – just like a toaster oven that toasts and bakes, but only two slices of bread or a single slice of pizza at a time.
For some people, there is value in a toaster oven that does toasting and baking in one appliance. It will probably come as no surprise, however, that more toasters are sold each year than toaster ovens, and more ovens are sold each year than toaster ovens.
Do donors want or need a United Way that is like a toaster oven? With the internet and the ability to easily research and give directly to any charity, many donors no longer need or value United Way allocating contributions and holding charities accountable. Donors that want to see exactly how their contribution makes a difference can contribute to other charities that explain how many people are no longer homeless or how many children are entering kindergarten ready to learn. Donors who only want to fund local programs, or address a specific local issue, are unlikely to support a United Way that tries to do both but does neither one exceptionally.
The future of United Way looks more like an oven. Most donors are looking for United Way to be exceptional at impacting their community. When donors are given the choice between a United Way that raises and distributes money to local charities, and a United Way that focuses on making measurable impact on a specific issue, the results are not even close. On average, 85% of United Way donors want their United Way to focus on making measurable impact on a specific issue.
A United Way that focuses on making measurable impact on a specific issue is called an issue focused United Way. Issue focused United Ways choose an issue like hunger, kindergarten readiness, poverty, or homelessness, bring together the community to impact the issue, and allow donors the ability to change lives in their community by giving to United Way. Issue focused United Ways do not try to be a toaster oven, rather they are like “impact ovens” that bake more impact than any toaster oven United Way could ever do. Learn more about an issue focus by watching our free webinar United Way Survival Guide: How to Keep Your United Way From Dying.
The future of United Way is not a toaster oven trying to be everything to everyone, while not being exceptional at anything. The future of United Way is an issue focused oven that provides donors exactly what they want – the ability to change lives in their community and does so exceptionally well.