About UWSEPA
Frequently Asked Questions
Q. Where does the money go?
A. Approximately half of the funds raised from individual and company donors are directed to United Way’s Community Impact Fund, which makes strategic investments in Education for Children, Income for Families and Health for Seniors. The other half of funds raised are directed by donors to individual agencies of their choice.
Q. I get asked for money by so many organizations. Why should I give to United Way? How is United Way different from other non-profits?
A. There are many reasons to choose United Way for your charitable contributions:
- Our experience in the region – we have been helping businesses and donors with their philanthropy since 1921 -- all dollars used locally in the Greater Philadelphia region.
- With a single gift to United Way’s Community Impact Fund, you support a broad range of services that you know make a measurable difference with measurable results.
- United Way actively monitors the use of your Community Impact gift, selecting highly effective agencies and holding them accountable for results.
- When donors pool their money through United Way, they not only fund local services, but also help to attract national funding to the community.
- United Way listens to the community and works hand-in-hand with community leaders to make quality services available where they are needed most.
Q. I am personally involved with a particular organization. Why shouldn’t I just send my money directly to them instead of paying United Way’s overhead charges?
A. To those donors who faithfully give to an organization of your choice every year, we thank you. We simply ask that you give in partnership with United Way so that we have the capacity to reach out to the nearly half a million others who need for us to ask. In this way you help to leverage gifts from others that might never be made otherwise, and build philanthropy community-wide.
Q. What are United Way’s administrative fees? How much of the money goes to the community?
A. Administrative fees are charged against all agency payments to recover the cost of United Way fundraising and administration. All non-profits have fundraising costs and – at 12.5% -- United Way’s are among the lowest in the business. As a result United Way is able to pass over 87 cents of every dollar received through to community services.
Q. If United Way deducts an administrative charge and the agency then deducts more overhead, doesn’t this duplicate overhead costs?
A. United Way’s fee recovers our fundraising costs. The agency may have additional overhead expenses related to their delivery of services but we have saved them the expense of fundraising. Thus there is no duplication.
Q. How can the organization I am involved with get money through United Way Donor Choice Program?
A. Simply making a pledge and writing an agency’s name on the form will kick off the eligibility process. If a donor designates an agency that is not currently in our program, we send an application for eligibility to the agency. Agencies can also apply directly to this program for a small fee to cover handling costs. All agencies that have been reviewed and found eligible for donor designations are listed on the United Way web site at www.uwsepa.org . The most common reason that agencies are found ineligible is because they do not provide human health or social services.
Eligibility Requirements for an agency to receive Donor Choice funds:
- Provide Human Health and/or Social Service programs;
- Have federal tax exempt status 501(c) 3;
- Comply with the US Patriot Act; and
- Provide services to residents of PA, DE, and/or NJ.
Q. Why hasn’t the agency I designated my gift to last fall been paid yet?
A. Donors generally make their pledges in the fall but their gift is deducted out of their paychecks over the course of the following calendar year, beginning in January. These deductions are remitted to United Way by the donor’s employer at 1to 3 month intervals. Final payments of payroll deductions made in December of the year following the campaign, may not be made until the March that comes fifteen or more months after the pledge was made. United Way can only pay out these funds as they are received, cutting checks every two months. In addition, some donor information comes to United Way tagged “anonymous” so that agencies don’t necessarily know whose gifts are included in the checks they receive from us. Please consider whether you truly want to remain anonymous, as the agency to which you give will not then know your name.
Q. In what measurable ways has United Way made the community better this past year?
A. United Way directed the $22 million invested through our Community Impact Fund to improve the lives of people throughout the region. These investments supported the work of a regional network of high-quality agencies in providing services that prepare children and youth to succeed in school and in life, building financial stability and independence for families and keeping seniors healthy and safe at home.
- Over 53 United Way-funded programs provided 4,300 children with preschool education. United Way was also able to link 5,000 youths with mentors last year, while 52,000 children and youth attended United Way-funded after school and youth development programs.
- United Way-funded agencies provided workplace training programs for 3,500 low-income individuals, offered adult basic education instruction to more than 2,900 adults, and connected thousands of individuals and families to emergency assistance such as rent, mortgage, utilities, food, emergency shelter and temporary housing.
- United Way-funded agencies helped more than 50,000 elderly neighbors remain independent by connecting them to services that allowed them to socialize, remain active and prevented them from being isolated.
Q. Wasn’t there some kind of scandal associated with United Way a few years ago?
A. Although there were incidents at other United Way organizations (2003 United Way of the National Capital Area and in 1992 at United Way of America), our volunteer-driven United Way was not involved in any way. Each United Way is separately and locally incorporated and governed. United Way of Southeastern Pennsylvania continually examines its own practices and maintains the highest standards of accountability. These practices and procedures are in line with the practices, values, and guidelines of United Way of America and United Way's national system.
Q. If United Way did not exist, what mechanism would replace it to assure that organizations providing essential human services obtain the resources they require?
A. Unless a new organization were formed to do what United Way does, each of the more than 9,000 tax exempt, charitable health and human service organizations in the Greater Philadelphia region would have to solicit corporations and their employees on their own.
Additional Information for United Way Supporters and Volunteers
Q. What is United Way of Southeastern Pennsylvania's Mission?
A. To improve people’s lives by mobilizing the caring power of donors, volunteers and communities.
Q. What is the history of United Way of Southeastern Pennsylvania?
A. In 1921, leaders in the Greater Philadelphia business community were committed to helping those in need. They established United Way as a vehicle to improve the efficiency and success of several overlapping fund drives.
Q. What regions does United Way of Southeastern Pennsylvania serve?
A. United Way of Southeastern Pennsylvania serves a four county region including Philadelphia County and parts of Chester, Delaware and Montgomery Counties. This region has approximately 3 million residents. According to the most recent U.S. Census, 12.3 percent of this population lives at or below the federal poverty level. 19.4% of children below the age of 18 live in poverty in this region. View service area map.
Q. How does United Way use the funds given to United Way itself and its Community Impact Fund?
A. After considerable research by expert staff and volunteers, the United Way Board of Directors has invested the $22 million raised for the Community Impact Fund in the 2007-08 Campaign as follows: $11 million was awarded in grants of general operating support to 137 community agencies across the region and another $10.8 million in community investments directed towards specific projects and initiatives. The result of a competitive process open to more than 9,000 non-profits throughout the region, this slate of investments is aimed at advancing the United Way Agenda for Community Solutions (see Appendix 1). By delivering on this agenda, United Way is ensuring that donor dollars will be invested in achieving concrete results – through defined, evidence-based strategies for change – that will achieve lasting solutions to a tightly focused set of pressing problems in our region.
The priority goals and strategies set forth in the Agenda for Community Solutions are focused on the root causes of our region’s challenges, rather than the symptoms. They emphasize areas in which United Way has unique strengths and capabilities that add to the value of donor dollars and leverage the value of our relationships with the business and non-profit communities across the region. These priority areas are the Education for Children, Income for Families, and the Health of our Seniors. The Agenda also provides for a safety net of basic services across the region and capacity-building efforts that will strengthen the nonprofit community as a whole.
Q. Who decides where the money is directed?
A. In developing the Agenda for Community Solutions, United Way undertook a thorough process, incorporating research, statistical analysis, and meetings with hundreds of experts and practitioners, to determine where and how United Way could have the greatest impact on our region. Non-profit agencies from through-out the region were invited in January 2008 to share information with United Way on their work in relation to the Agenda, along with fiscal and organizational best practices.
Staff and volunteer experts from business and the community then reviewed agency qualifications to advance the Agenda, assessing each agency’s demonstrated performance in service delivery and the extent of their service to targeted populations in need. The work of staff and volunteers is overseen by United Way’s 60- member Board of Directors (also volunteers), which must approve all community investments, an action usually taken at the June Board meeting.
Q. Which agencies are funded through United Way’s Community Impact Fund?
A. A list of agencies, organized by strategy and including those funded for both general operating support and directed investments, is included on our page devoted to Investing in Results. View the list of funded agencies.
Q. How does United Way help to strengthen the human service sector in addition to funding?
A. In June, 2007, the Board of Directors of United Way of Southeastern Pennsylvania adopted the Agenda for Community Solutions, which calls for United Way to focus its community investments in a few strategic priorities through a sound business strategy, accountable for achievable and measurable goals that can be demonstrated and communicated to United Way’s 100,000+ annual donors. The Agenda also calls on United Way to be a leading change agent in the region, identifying and advocating for solutions, addressing human needs through partnerships and collaborations, convening key stakeholders, setting standards for human service agencies and services, and influencing public policy.
Our new Agenda seeks to accomplish more by taking full advantage of all of United Way’s unique capabilities, not just our fundraising capacity. These capabilities are based upon our unique relationship with the corporate and government sectors, our credibility built on decades of experience and impact, our integral partnerships with thousands of health and human service agencies, and our relationships with hundreds of workplaces that make it possible for tens of thousands of people to donate their time and money to improving the quality of life of their fellow residents. With these assets, United Way is exceptionally well-positioned to:
- Identify and educate the community about human services needs;
- Mobilize the community to volunteer to support the work of the regional network of human services agencies;
- Develop and sponsor innovative solutions and quality improvement efforts aimed at strengthening the effectiveness of social service systems;
- Convene and lead collaborations with business, government and community organizations;
- Provide leadership in public policy advocacy focused on using public resources more efficiently and effectively to meet human needs;
- Raise funds through relationships with individuals, corporations, government and foundations; and
- Provide and monitor direct financial support to organizations.
Applying all of these capabilities to some of the most pressing needs of the community is, we believe, the path to achieving measurable results.
Q. How does United Way mobilize volunteers? How can individuals and companies get involved in volunteering?
A. United Way coordinates two large-scale community service days each year – Days of Caring in September and Martin Luther King Day of Service in January; as well as numerous other volunteer initiatives including – volunteer tax preparation for low-income families to help them access the Earned Income Tax Credit, Stuff the Bus to provide school supplies for homeless children, and youth mentoring.
United Way also mobilizes volunteer efforts in response to special circumstances, such as the increased need for weatherization services in light of the dramatic rise in the cost of home heating (Project Warm Heart). United Way maintains a year-round web site at www.volunteerway.org that lists opportunities for would-be volunteers, and organizes group opportunities as requested by companies that run workplace Campaigns with United Way’s support. Companies interested in organizing a special volunteer opportunity for their employees can contact United Way’s Director of Public Engagement for consultation.
Campaign Results; Where Our Money Comes From
Q. What is United Way’s Campaign goal?
A. The Campaign Cabinet set, and the Board of Directors approved, a Campaign goal of $54 million for the 2007 Campaign. The 2008 Campaign Goal is $54,025,000.
Q. How much did United Way raise in the last campaign?
A. United Way of Southeastern Pennsylvania raised $54 million in pledges to our Fall 2007 Campaign. This does not include restricted grants from foundations and government, which we track but do not count in funds raised. See the following chart for an analysis and comparison of the past four campaigns.
| 4 Year Campaign Statistics | ||||
| 2004 | 2005 | 2006 | 2007 | |
| Total Annual Campaign | ||||
| Raised | $48.6M | $49.2M | $52.0M | $54.0M |
| Ind/Emp | $34.8M | $35.6M | $38.1M | $39.6M |
| Corporate | $12.2M | $11.9M | $12.2M | $12.7M |
| Foundations | $1.6M | $1.7M | $1.7M | $1.7M |
| Leadership Giving ($1000+) | ||||
| Raised | $17.5M | $18.4M | $18.8M | $21.1M |
| Members | 5,669 | 6,231 | 6,575 | 7,121 |
| % Ind. Giving | 51% | 52% | 49% | 53% |
| % Tot. Campaign | 36% | 37% | 36% | 39% |
| Tocqueville Society ($10,000+) | ||||
| Raised | $8.2M | $8.9M | $9.96M | $10.2M |
| Members | 430 | 477 | 490 | 529 |
| % Ldr. Giving | 47% | 48% | 53% | 48% |
| % Tot. Giving | 17% | 18% | 19% | 19% |
| Administrative Fee | ||||
| % Cost Donor Agencies | 11.9% | 12.3% | 12.6% | 12.6% |
| Specific Agencies (Donor Choice) | ||||
| Raised | $22.7M | $21.9M | $21.6M | $22.6M |
| Net Community Impact Dollars from the Campaign (net of United Way costs & services) | $19.6M | $20.1M | $21.3M | $22.2M |
Q. What does United Way count when it reports total funds raised (i.e., does it count money raised by other United Ways? Does it count the value of volunteer time, etc.?)
A. United Way of Southeastern Pennsylvania reports only pledges received from workplaces located in our four county region, in compliance with United Way of America guidelines. We track but do not count in Campaign results the value of donated goods, volunteer time, and dollars raised from outside of our region.
Q. What kind of fee does United Way charge against gifts?
A. United Way will recover its costs through a fee of 12.5% for the 2008 Campaign. With 87.5% of contributions going directly to benefit the community, United Way ranks among the top non-profit agencies in the country.
Q. How does United Way use the dollars recovered through this charge against gifts?
A. The cost recovery rate is used to support an infrastructure that raises and distributes over $50 million each year for the community. It covers such costs as fundraising, marketing, finance, technology, pledge management, and donor services.
Q. What value do agencies receive in exchange for paying this cost recovery rate?
A. The art and expense of fundraising is such that for many, if not most agencies, the opportunity to raise significant sums of money is close to impossible. United Way’s fundraising affords access to venues that most of our 3000+ agencies would not be able to otherwise reach. The United Way Campaign provides unrestricted funding, the most difficult revenue for a non-profit to raise. These funds allow agencies to leverage millions of dollars of program support from government and foundation grants.
Q. How many companies run United Way campaigns in the region?
A. 1,200 companies and organizations run Campaigns, ranging in size from those with two employees to those with tens of thousands.
Q. What benefits are there to the company in running a United Way Campaign?
A. Running a campaign gives both the employer and employees the opportunity to give back to the community in which they live and work. The Campaign brings employees together as a team working for a common cause. It generates goodwill for the employees and the company while improving conditions in our region. The convenient payroll deduction system makes it easy for donors to give. In addition United Way offers companies and employees opportunities to volunteer and participate in community service projects geared to build team spirit and improve conditions in the community.
Q. How can donors make a gift to United Way if they are not connected to a company?
A. Individuals can make contributions via our Web site or by sending a check or money order directly to Individual Giving, United Way of Southeastern Pennsylvania, 1709 Benjamin Franklin Parkway, Philadelphia, PA 19103.
Q. How many individual donors does United Way have (categorized by inside and outside the workplace)?
A. Approximately 97,430 individuals give to the United Way Campaign in this region – 92,827 as part of a workplace campaign and 5,189 from home. Another 12,292 give to the Combined Federal Campaign, which is managed by United Way of Southeastern Pennsylvania under contract, for a total of 109,722 donors altogether.
Q. Can donors make gifts other than cash or payroll deduction to United Way?
A. United Way has systems in place to accept credit card gifts, gifts of stock, and non-traditional gifts such as of real estate as a convenience to donors. Gifts of securities to United Way may be made through your broker, which is the easiest method of donation. United Way has a brokerage account with Vanguard that was established to accept donations of securities. Please contact Karen Cleary, Vice President of Finance, at 215- 665-2488 or kcleary@uwsepa.org, for more information on donating stock to United Way.
Complete instructions are available on United Way’s website at www.uwsepa.org/stocks.
Q. Does United Way accept donations of clothing, furniture, cars, etc.?
A. United Way operates a Gifts in Kind program that brokers donations of quality surplus merchandise and equipment, and distributes it to health and human service agencies in the Greater Philadelphia community. Through corporate generosity, The United Way’s Gifts in Kind Program brings about $2 million dollars worth of items such as ADOBE® software, Avon® products, Office Depot® office supplies, Carrier air conditioners and children's books to disadvantaged neighborhoods. Small individual donations are usually referred to other organizations. The same procedure is followed regarding automobile donations. They are forwarded to organizations that are equipped to receive pre-owned vehicles.
United Way’s program is generally designed to broker larger corporate merchandise. Questions about giving articles to Gifts In Kind can be directed to Camara Jordan, 215-665-2468. Governance and Accountability
Q. What is United Way’s operating budget?
A. United Way of Southeastern Pennsylvania has an annual operating budget of $9.5 million, including depreciation. This does not include expenses covered by time-limited foundation and government grants.
Q. Where can donors see a copy of United Way’s Tax Return?
A. United Way’s Informational Tax Return (990) can be viewed on our website at www.uwsepa.org . To receive a copy from United Way, donors should email nelliott@uwsepa.org typing “Informational Tax Return” in the subject line. Donors should include their full mailing address in the body of the e-mail, including zip code. If they do not have access to e-mail or have any further questions, they should call 215.665.2643.
Q. How many staff does United Way have? How many volunteers?
A. United Way of Southeastern Pennsylvania has approximately 100 staff. United Way has approximately 11,000 volunteers, 10,000 of whom work to raise funds in their workplaces. The other thousand include volunteer tax preparers for the Earned Income Tax Credit initiative and the 500 volunteers who serve on United Way’s Board and standing committees. Another 30,000 volunteers are mobilized by United Way each year to carry out community service projects.
Q. What is the size and composition of United Way’s Board of Directors?
A. The board is composed of a cross-section of individuals from the community who represent the diversity of the community. The board consists of 50 - 60 elected board members from public, private, and non-profit sectors, who serve for three-year terms. Ex-officio board members, who are chairs of standing and key committees, are appointed for the term of their office, which are on average about three years. As of July 2008, the United Way board has 21 women and 18 members of minority ethnicity.
In addition, UWSEPA has the following standing committees: Executive, Finance, Audit, Campaign, Community Impact Strategy, Marketing and Communications, Nominating and Board Development, and Professional Advisory. These committees are responsible for reviewing and reporting activities of the organization to the Board of Directors.
UWSEPA bylaws require that Finance and Audit Committee members have appropriate financial, legal, and/or management experience.
Q. Does UWSEPA adhere to a locally developed and adopted code of ethics, which include provisions for ethical management, publicity, fundraising practices, and full and fair disclosure?
A. Yes, UWSEPA employees and volunteers are required to verify their compliance with a Board-approved Code of Ethics. The Code covers issues relating to conflict of interest, acceptance of gifts, confidentiality of information and other matters relating to ethical practice.
Q. What is UWSEPA’s privacy policy?
A. UWSEPA’s privacy policy is covered in the Code of Ethics document, as follows:
“Confidentiality is a hallmark of professional conduct, and a cornerstone of United Way’s value and integrity for our customers, with whom we have a relationship based on trust and effective stewardship of contributions and information provided to us. Donors, corporations, our partner and member agencies, and other funding organizations rely on our ability to utilize and manage information with the highest degree of confidentiality. Each United Way employee must:
- Ensure that they do not disclose inappropriately any and all information which is confidential or privileged, or which is not publicly available.
- Ensure that all non-public information about other persons or firms, which is acquired by United Way personnel in the course of their work on behalf of United Way, is treated as confidential and not disclosed outside of United Way.”
Q. What is United Way of Southeastern Pennsylvania’s relationship to other United Ways?
A. There are approximately 1,300 affiliated United Ways nationwide. All United Ways are independent, separately incorporated, and governed by local volunteers. United Way of America is the national organization, supported by dues from the 1,300 local United Ways, that sets standards, policies and best practices for the network.
Under the oversight of our volunteer Board of Directors, United Way of Southeastern Pennsylvania continually examines its own practices and maintains the highest standards of accountability. These practices and procedures are in line with the practices, values, and guidelines of United Way of America and United Way's national system.
Q. Does UWSEPA comply with generally accepted accounting principles and have an annual audit conducted by an independent certified public accountant whose examination complies with generally accepted auditing standards?
A. Yes. Under the oversight of UWSEPA’s audit committee, an independent audit firm conducts an annual financial audit of the corporation. UWSEPA bylaws require that audit work be put out to bid every five years. The independent auditors annually present all audit results to the Audit Committee for review and approval, and the Chair of the Audit Committee annually reports such results to the Board of Directors. The Audit Committee also recommends appropriate action in response to any management letter comments made by the independent auditors. The IRS Form 990 (UWSEPA’s tax return) prepared by our auditors and based on our audit is publicly available, either through guidestar.org or through a direct request to UWSEPA.
Q. What is the difference between overhead and administrative fees, (sometimes called donor choice fees)? How much does UWSEPA deduct from donor contributions to cover administrative fees?
A. Overhead is the cost of fundraising, marketing and administration for UWSEPA. This includes all costs excluding community services and is often measured a percentage of total dollars raised. UWSEPA’s overhead rate, as calculated on our IRS Form 990, for the fiscal year ended June 30, 2008 was approximately 13%. [Note that this is NOT the amount deducted from a donor’s gift due to UWSEPA’s ability to offset these costs with revenue such as rental and investment income.]
Donor Choice administrative fees are the fees that are deducted from dollars designated to agencies as part of our donor choice program; the flat rate charged for payments to agencies for the 2008 campaign will be 12.5% charged to agencies, and 4% charged to other United Ways for whom we do the processing. The charge is less than the gross overhead cost of approximately 13% due to the ability to offset such expenses with investment income, rental and other miscellaneous revenue.
Q. How much of my gift ultimately gets to my designated agency?
A. 12.5% is the only fee charged by UWSEPA – we charge no other fees. If we received all dollars pledged, every agency would receive 87.5 cents on the dollar. However, not all pledges are ultimately collected. UWSEPA’s uncollectible rate has historically been approximately 6% on donor-designated gifts, similar to industry average and primarily due to changes in employment of our donors. Since we can only pay these agencies the funds we receive and this amount will vary by agency depending on the actual experience for the donors who specifically designated to that agency, an agency may sometimes receive less than 87.5 cents of every dollar.
Q. How often does UWSEPA payout donor choice funds? Who receives the interest on that money that UWSEPA holds between payments?
A. Payments to donor choice agencies occur generally on a monthly basis for alternating campaign years based on cash received. Payments must be received before the end of any given month to be included in the next month’s payout. The payout schedule is generally as follows:
- Current campaign – payouts will be in December (during the campaign), March, May, July, September, November, (first year after campaign)
- Prior year campaign – payouts in February, April, and June.
- Third Year after campaign – payouts scheduled as needed based upon the cumulative dollars collected since the last payout. All investment income received on donor designated funds awaiting payment is used to offset donor choice administrative fees.
Q. Do all donors receive tax receipts?
A. The IRS requires that all individuals who itemize their deductions on their federal tax return have documentation that substantiates all contributions, regardless of amount. United Way mails tax receipts in February of each year to all donors and companies that made payment in the prior calendar year through any method other than payroll deduction and securities. Tax receipts are mailed to all donors of securities within 30 days of donation.
Please note that the IRS does require separate substantiation for payroll payments. Required documentation includes 1) a pay-stub, W-2 OR other documentation furnished by the employer that indicates the amount withheld during the tax year for payment to a charitable organization; AND 2) a copy of the pledge confirmation letter from United Way. Note that continuous and rollover givers must provide the same documentation as other tax payers to substantiate donations for tax purposes. Additionally, irrespective of payment method, United Way sends a letter to every donor acknowledging and thanking them for their pledge and indicating “no goods or services” were provided in exchange for their pledge. This confirmation letter must also be kept by donors to substantiate their pledge.
A complete discussion of United Way’s policies on tax substantiation may be found here.
Information Technology
Q. What safeguards does UWSEPA use to protect sensitive donor information on its computer systems?
A. UWSEPA has policies that govern confidentiality, data retention, and data security. Employees are required to sign and adhere to these policies. UWSEPA utilizes security tolls that are sanctioned by technology and security standards.
Q. How does UWSEPA secure its donor information gathered via electronic pledging tools?
A. Customer data is stored in a SQL database and secured through NT/SQL security. UWSEPA adheres to standards set forth by Microsoft, SANS Institute (System Administration, Audit Network Security) and related vendors. By utilizing proper data encryption and browser management techniques, improper access to donor information is prevented.
Q. How does UWSEPA audit its computer system networks?
A. UWSEPA has a formal audit policy and a yearly Information Technology audit is conducted by an outside firm.
