Another United Way Closes

LOCAL UNITED WAY DISSOLVING

The headline read “Local United Way dissolving, issues final grants.”

Regrettably, this isn’t really news because United Way closings have become all too common. Over the past 20 years, the number of local United Ways in the United States has plummeted from over 1,400 to less than 1,000.

What makes the closing of United Way of Coastal Georgia notable, compared to nearly every other United Way closing, are the comments attributed to their chairman of the board William Fallon.

According to The Brunswick News, “Fallon said nonprofit organizations are better stewards of donations than in years past and that United Way’s function as oversight on the efficiencies and effectiveness of the organizations is not as needed as it has been in years past.” Fallon was also quoted in the article as saying “Many of our major commercial donors now have their own foundations and others have trust in the organizations they help fund directly.”

SAYING WHAT FEW HAVE SAID

Fallon’s statements are commendable because he said out loud what has been obvious for years. United Ways are no longer needed to vet nonprofit organizations as resources like Guidestar and Charity Navigator are available at the donor’s fingertips. His comment about others having trust in the organizations they help fund directly, speaks to how most donors have found it just as easy to support their chosen nonprofit organizations directly without the United Way middleman.

THE QUESTION YOU NEED TO ANSWER NOW

Before your United Way is facing the need to close, the question your board needs to ask, and answer, is “Why does your United Way exist?”  

There is no question in my mind that United Ways are needed now more than ever before. But the answer to the existential question of why does your United Way exist is dramatically different today. The role United Ways must play now is one of uniting communities to make change.

The goal can no longer be how much money is raised. The goal now should be community change such as increasing the number of high school graduates, reducing the number of homeless, or halting hunger. Your United Way has the unique capability to convene your community, donors, volunteers, nonprofits, workplaces, governments, schools, and religious organizations to make measurable change on a social issue in your community.

We refer to the new role for United Ways as issue-focused. Issue-focused United Ways address a single issue, with a long-term bold goal for how their community will change the issue. For example, a United Way focusing on the issue of early childhood education may be leading a bold goal such as “All children enter kindergarten ready to learn.”

CHANGE OR CLOSE?

For most United Ways, change is inevitable – but that does not mean your United Way must close. The first step to determining the new “why” for your United Way’s existence starts with our New Directions Board and Staff Retreat.

During this half-day retreat, we will explain the three types of United Ways, how their business models work, and why each type of United Way exists. During the retreat, we’ll give your staff and board time to ask questions about each type of United Way, and more importantly, time to have a conversation about which type of United Way is right for your community. When is the last time your board and staff sat down together and talked about why your United Way exists?

Let’s have a conversation about “why” your United Way exists and how our New Directions Board and Staff Retreat will help you set the future direction of your United Way. You can grab some time on our calendar here or send us an email and we’ll talk.