You’re Wrong About . . . Donors

There are plenty of misperceptions about United Way donors. Let’s see how well you know your donors.

Before we debunk all of these misperceptions, you might be asking yourself “How does Perspectives know all about United Way donors?” Since 1989, we have worked with over 140 United Ways providing research-based strategic planning, guidance, and training. As part of our strategic planning, we have conducted donor surveys for United Ways large and small throughout the United States. All of the statistics and information we are sharing with you comes from hundreds of thousands of donors who have completed donor surveys throughout the years.

Here are some of the most common misperceptions about United Way donors:

Overhead/Administrative Costs

Most donors are concerned about your overhead/administrative costs. WRONG! On average, only 4% of all donors researched the overhead/administrative costs of their United Way before giving. Although you may hear from donors “all the time” who are asking about your overhead/administrative costs, keep in mind that 4% is a very small fraction of all your donors. Promoting your overhead/administrative costs is not necessary and only serves to draw attention to something the vast majority of donors don’t care about. Instead, put a link to your 990 from or audit on your website for the 4% who are interested and spend the majority of your effort showing donors the impact of their contribution.

Partner Agencies/Funded Programs

Your donors know what organizations and programs your United Way funds. WRONG! On average, less than half of all donors can name three organizations or programs funded by their United Way. Yes, you read that correctly, most donors can only name one or two partner agencies and/or programs. In fact, some donors connect their United Way to organizations and programs that their United Way does not fund. Donors are actually less concerned about the names and numbers of partner agencies or programs funded and far more concerned about how these agencies or programs are changing or improving lives in their community. If you are going to list your partner agencies or funded programs, be sure to include what each agency or program does like reduce poverty, increase childhood literacy, or halt hunger.

Designations

Donors designate because they disagree with how United Way allocates their contribution. WRONG! The most common reason donors designate is because they have a personal connection with the organization – they or their family have received help from the organization. The second most common reason donors designate is that they do not understand what United Way does. Quite simply, since they don’t know what United Way does, donors designate to an organization where they know what their contribution will accomplish. If you want to convince donors to give to your United Way instead of designating, you need to clearly articulate how the donor’s contribution will change or improve lives in their community.

United Way Purpose

Most donors want United Way to allocate money to a variety of local nonprofit organizations and programs. WRONG! When we ask donors if they would like United Way to allocate money to a variety of local nonprofit organizations and programs <or> if they would like United Way to focus on making measurable change addressing a critical social issue in their community, on average, 85% of donors want United Way to focus on making measurable change addressing a critical social issue in their community. This is especially true for the younger generation – nearly every donor under age 35 wants their United Way to focus on making measurable change addressing a critical social issue in their community.

Technology has made it incredibly easy for people to give money to local nonprofit organizations. People no longer need United Way to vet charities as they can do that on their own with Guidestar or Charity Navigator. People no longer need United Way to allocate their contribution as there are a variety of quick and easy ways for people to give to as many charities as they want. People no longer need United Way to tell them what local nonprofit organizations did with their contribution as most charitable organizations directly communicate their outcomes to donors.

United Way donors want three things. First, United Way donors want to know what issue their United Way addresses, such as poverty, third-grade reading, or homelessness. Second, United Way donors what to know what United Way is doing about their issue, such as Community in Schools, VITA, Dolly Parton’s Imagination Library, or funding programs targeted at addressing the selected issue. Third, donors want to know how many lives were changed as a result of their contribution, such as 17 families now have permanent housing, 458 children are now reading at grade level, or 78 women have completed their college degree and found employment allowing their families to be financially stable.

Issue Focus

When a United Way chooses to measurably address a critical social issue in their community, they are issue focused. Instead of allocating money to a variety of local nonprofit organizations and programs, issue focused United Ways look at how best to invest donors’ contributions to achieve a bold goal such as 70% of all children will read at grade level by 2025 or 3,000 families will be financially stable by 2030. People do not ask issue focused United Ways about their overhead/administrative costs because issue focused United Ways can demonstrate to donors how their contribution is measurably changing lives in their community. Since issue focused United Ways can show a donor how their contribution changes lives, they don’t need to list partner agencies or funded programs to convince donors to give. Designations drop at issue focused United Ways because donors understand that by giving to United Way their contribution will measurably address a critical social issue in their community.

Many of the challenges facing United Ways today are not going to be solved by doing more of what United Ways have always done. For United Ways to be relevant and sustainable in the future, it is essential to confront the fact that technology, workplaces, charitable giving, and what donors want and need from United Way have changed.  

When we are no longer able to change a situation, we are challenged to change ourselves.

- Viktor Frankl