Formation
1887
Denver, Colorado, U.S.
Private non-profit
Active
701 N. Fairfax Street
Alexandria, Virginia 22314
Worldwide
Angela F. Williams
$5.196 billion (2021)[1]
Local United Way fundraising thermometer poster
United Way of Canada's campaign kick-off event where the annual campaign goal of C$31 million is announced
While each local United Way has its own programs and initiatives, there are some national and international initiatives that are formed between United Ways or by the United Way Worldwide body.
Tocqueville Award[edit]
Local United Way organizations offer an annual Alexis de Tocqueville award to recognize philanthropy or community activism in their communities.[87][88] Past recipients include New Orleans Saints linebacker Demario Davis, former Entergy chairman and CEO J. Wayne Leonard, and East West Bank president, CEO and chairman Dominic Ng.[89][90] Bill Tiefel, chairman of CarMax and chairman emeritus of The Ritz-Carlton Hotel Company, received the award in 2019, alongside his wife Norma.[91] Award winners are recognized for their philanthropic contributions and other charitable efforts.[92]
In United Way's history, it has been the subject of several local and national controversies.
Criticisms[edit]
Donation coercion in the workplace[edit]
While United Way's workplace fundraising campaigns may help encourage higher donation levels among co-workers, it may also lead to employees feeling pressure to take part. Some employees may feel coerced to donate to United Way by their co-workers or management soliciting contributions in their workplace.[104]
A reporter with the Atlanta Business Chronicle described it as this: "The problem with the United Way's methods is simple: When the CEO of a company gathers employees in a room and strongly encourages them to donate to the United Way, most of them are going to donate. And many will be doing so out of fear that there could be consequences if they don't."[105]
United Way lists guidelines on its national website to prevent coercion, including having non-managers lead the solicitation and discouraging setting campaigns with 100 percent participation goals.[104]
Role as an intermediary in the donation process[edit]
Some have labeled United Way a "middleman" since it raises funds and then passes them on to nonprofit agencies.[106][107] In 2007, Brian Gallagher said that critics who still see United Way that way have not followed more recent developments of the organization: "Six years ago we were much more focused – or split – on fund-raising. ... Instead of the model being 'one campaign for all; give us the money and we'll decide where it goes', we moved to a model where we identified issues, strategies and products, and segmented our markets so we knew what women and young people, and corporations and foundations, cared about." Addressing the middle man label directly he said that "nobody wants anything or one in the middle of a transaction that doesn't add value. ... Folks use the term middle man as a negative. It is not a negative if it adds value."[108]
Monopolistic practices[edit]
United Way has been criticized for its dominance over workplace giving and for making exclusionary funding decisions. In 1978, the National Commission on Neighborhoods released a report prepared by the National Committee for Responsive Philanthropy which found that United Way used "both fair and foul" practices to "monopolize solicitation of employees at the workplace." The report claimed that United Way is "an exclusionary group, designed to keep out most neighborhood groups and smaller charities." The report called for a repeal of the organization's policies "which insist on a monopoly of workplace solicitation."[109]
United Way of America senior vice president Robert Beggan responded to the allegations saying, "We neither control payroll deductions, nor do we exclude other organizations from seeking payroll deductions." Addressing the exclusionary allocations claim he said, "we allocate money [to member charities] on need not on emotion. ... There's a finite amount of money available and an infinite amount of need, and we have to be careful."[109] By the mid-1970s, just 13 nonprofits (including the YMCA, the Red Cross, the Boy Scouts and the Girl Scouts, and the Salvation Army) accounted for more than 57% of all United Way allocations.[36]
To limit competing with fundraisers from disease-related nonprofit organizations, some United Ways have signed contractual agreements with nonprofits guaranteeing them with a level of funding if they incorporate their fundraising efforts under United Way's campaign.[110]
By design, United Way aims to provide support for large, local human service organizations through a process of consensus decision making. The result inevitably favors funding of moderate and traditional agencies over civil rights and controversial causes.[110] Planned Parenthood, The Boy Scouts of America, counseling services for gay youth, and, initially, programs for people with HIV/AIDS have been excluded to avoid turning off potential donors.[111][112]