United Way Donations Increase 4.7%, to Record Level

United Ways across the country raised $3.4-billion in their 1997-98 drives, a 4.7-per-cent increase from the previous campaign season, United Way of America reported last week. The total dollar amount is more than has ever been raised by United Ways.

While the campaign set a record, the news was not entirely rosy. When inflation is taken into account, the latest numbers still lag behind 1989, when United Way had its most successful year, raising the equivalent of $3.9-billion in today’s economy. Furthermore, the increase does not measure up to the 7.5-per-cent jump in donations that Americans gave to all charities, as reported by Giving USA, a study published by the American Association of Fund-Raising Counsel Trust for Philanthropy, in New York.

Nevertheless, the growth is a sign that United Ways, whose campaigns benefit more than 45,000 charities, have recovered from the sharp downturns that many experienced in the early 1990s due to the economic recession and the scandal over the lavish spending habits of William Aramony, who was forced to resign as head of United Way of America in 1992.

“What surprised us was the breadth and depth of the good news,” said Betty Stanley Beene, president of United Way of America. “It was all across the country and in all sizes of markets, but particularly in our largest markets.”

Indeed, of the biggest United Ways — the 74 organizations that each raise at least $9-million a year — only Honolulu slipped back below last season’s campaign total, the result of a faltering economy there.

The average increase among the largest United Ways was 5.6 per cent.

Smaller United Ways also saw gains:

* United Ways that raise $4-million to $8,999,999 grew by 3.5 per cent, on average.

* Of those that raise $2-million to $3,999,999, the average rise was 5.4 per cent.

* Of those that raise $1-million to $1,999,999, the average increase was 5.5 per cent.

United Way of America bases its figures on reports from 1,900 United Ways across the country. The figures are primarily for campaigns that run in the fall and continue for several months, although a growing number of drives are run year round (The Chronicle, March 12.)

One big reason many United Way campaigns have seen gains is that they have become much more aggressive in seeking big gifts, both from participants in on-the-job campaigns and from other individuals. Contributions of $1,000 or more have become the fastest-growing category of gifts, rising by 18.9 per cent in 1997-98 and accounting for 20 per cent of all donations to United Ways.

Also fueling the rise in total giving was an increase in the size of donations made through on-the-job drives. Employees gave an average of $154 apiece in 1997-98, compared with $146 in each of the previous two campaign seasons.

Individually, local United Ways used a variety of techniques to deal with specific issues in their regions. Among the notable results:

Austin, Tex. The United Way there raised 25 per cent more than in the previous drive — the biggest increase of any of the largest United Ways. The charity cashed in on the city’s booming high-technology economy by keeping in close touch with donors throughout the year, letting them know periodically how their money was being put to work in the community. And at companies such as Dell Computer Corporation, where employees are comfortable with electronic media, the United Way sent weekly e-mail campaign updates during the drive.

The frequent communications, coupled with the company’s prosperity and its strong ties to United Way, which have been building since 1992, resulted in contributions by Dell employees of $854,000 — nearly four times what they gave last year.

Eastern Massachusetts. Giving in three counties in eastern Massachusetts has almost doubled since their three separate United Ways merged a year and a half ago, says Paul Mina, president of the United Way of Tri-County, in Framingham. Businesses with offices in several counties were frustrated dealing with multiple local United Ways during each campaign, he says.

The United Way brought in $3-million in the 1997-98 campaign, 47 per cent more than the individual ones raised altogether previously; meanwhile, administrative costs dropped from 18.7 cents of every dollar raised to 14.3 cents.

Los Angeles. As big companies in the metropolitan area have shrunk the size of their work forces, charity officials have begun to give more attention to smaller businesses. They have also been trying to solicit gifts from companies owned by members of minority groups, especially Asians and Hispanics. Copies of all campaign materials have been printed in both Spanish and English, and key Asian community leaders broadcast public-service announcements on an Asian television station.

As a result, giving in the 1997-98 campaign rose 120 per cent among Hispanics, and 21 per cent among Asians. What’s more, the United Way for the first time received major gifts from members of minority groups. Four Hispanics and four Asians gave $10,000 apiece.

Todd Rosin, director of communications at the United Way of Greater Los Angeles, said that while the percentage of money his organization receives from Hispanics and Asians is relatively small compared with that now donated by whites, the United Way believes that gifts from minorities will soon make up a much bigger share of campaign totals. “It’s just a matter of time before this thing rockets.” he says.

Miami. The United Way’s giving in this Florida metropolis rose by 20 per cent, to $32.8-million. Achieving such significant increases is a big challenge in a city with few large corporations to run employee drives; in Miami-Dade County, 91 per cent of businesses employ fewer than 50 people.

United Way officials have increased revenue and expanded the number of donors by naming two or three people to serve as campaign chairmen for each region, instead of just one. They have also encouraged companies that conduct on-the-job drives to include employees of vendors in solicitations. The campaign at American Airlines, for example, includes not only its own employees but also workers at companies with which the airline does business.

The United Way has also been holding special events to raise money from people whom the organization is unable to solicit through its traditional on-the-job drives. A cruise to benefit the campaign netted $400,000 in one night.

While United Ways nationwide have no plans to give up their tra ditional on-the-job campaigns, they may find it necessary to continue using new techniques — especially as they face continuing competition from other charities seeking to raise money from the same pool of potential donors.

The key to keeping the numbers climbing, says Ms. Beene, is flexibility — “the ability to implement change quickly and to risk doing things differently.”