September 14, 2006 | Read Time: 5 minutes
United Ways raised $4.04-billion last year, a 0.4-percent increase over 2004, according to numbers released
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ALSO SEE: Chart: Largest Percentage Gains Chart: Donations Reported by 426 United Ways for 2005-6 |
by United Way of America.
The gain failed to exceed the 3.4-percent inflation rate for the year, but was an improvement over United Ways’ fund raising in previous years.
Fifty-six percent of the nation’s 1,326 United Ways increased their donations last year, compared with 42 percent that did so in 2003.
As has long been the case, donations from individuals accounted for most United Way gifts: They provided $2.91-billion (up 2.2 percent over 2004), followed by companies, which donated $1.02- billion (up 4.5 percent).
Brian A. Gallagher, president of United Way of America, in Alexandria, Va., says last year’s fund-raising results provide evidence that donors are reacting favorably to changes the organization has been making.
In recent years, many United Ways have been trying to emphasize their role in solving specific problems rather than as fund-raising conduits that simply pass money to a wide range of nonprofit groups.
Many United Ways — 90 percent, according to Mr. Gallagher — are now performing community assessments to identify major concerns and then working with local charities.
United Ways that are using such an approach, Mr. Gallagher says, are raising more money than groups that simply channel money to other organizations. “For the first time in 2005 we could, in a statistically valid way, say [to local United Ways], If you do this, you will do better,” Mr. Gallagher says.
In addition to fund-raising results, Mr. Gallagher says United Ways that have promoted their role in solving problems have seen improvements in measures of public trust and public perception of their work.
The United Way of King County, in Seattle, was one of the initial converts to the new mission, identifying lack of educational opportunities for young children and homelessness as two of the major challenges facing the metropolitan area, according to its spokesman, Jared Erlandson.
His organization, which enjoys corporate support from donors like Microsoft and Boeing, raised more last year from private sources than any other United Way: $98.7-million. That was a 5-percent decrease from the $103.9-million raised in 2004.
Despite the decline, Mr. Erlandson considers the 2005 results a success, saying a tight economy in the region and competition for donor dollars following natural disasters like Hurricane Katrina presented challenges.
Hurricane’s Influence
A United Way of America survey of affiliates shows Seattle isn’t alone in its challenges. Hurricanes were cited by 33.6 percent of United Ways as the biggest obstacle to their 2005-6 fund raising.
United Way of Southern Nevada, in Las Vegas, attributes the majority of its losses to Hurricane Katrina.
The organization, which suffered a 17.1-percent decrease, says few companies ran United Way campaigns last year.
Many Las Vegas corporations, like casinos and resorts, owned businesses in the hurricane- affected Gulf region. Those companies ran independent hurricane-relief campaigns to assist their employees, according to Dan Goulet, president of United Way of Southern Nevada.
Mr. Goulet’s organization lowered its campaign goal last year by $400,000, a decision he says “was the right thing to do.”
Other United Ways say the hurricanes bolstered their fund raising, especially United Ways nearest the affected region, or in cities with a large number of hurricane evacuees.
Atlanta’s United Way raised $97.7-million, 25 percent more than in 2004.
That was due in large part to a special fund-raising campaign that brought in $10.8-million designated to help hurricane evacuees who had relocated to the Atlanta area, according to Bonnie Cole, vice president of resource development at United Way of Metropolitan Atlanta.
Right in the heart of the Katrina response was the United Way in Baton Rouge, La. Donations rose by nearly 30 percent, which Ken Hinrichs, president of the Capital Area United Way, says was directly related to the national and local response to the hurricane.
A strong local economy was also a factor in the organization’s success, according to Mr. Hinrichs.
Oil companies fared well in 2005, and that was good for the United Way. ExxonMobil gave $1-million for hurricane relief in addition to the company’s annual corporate and employee contribution of close to $1.3-million.
Local Economies
Other United Ways were similarly affected by local economic forces.
“The number-one driver of growth for us is economy,” Mr. Gallagher said. He said cities like Boston and Flint, Mich., experienced declines in 2005 in direct relation to the local economies.
In the survey of fund-raising challenges, 20.6 percent of United Ways said their biggest hurdle was the economy. That was down from 48.1 percent in 2004, but still remained a key issue.
Mr. Goulet of the Las Vegas United Way, says his organization also experienced local economic difficulties in 2005 apart from those tied to Hurricane Katrina.
The group lost $1.2-million in donations due to the consolidation of major gaming entities in the area.
However, the charity was able to increase the number of big gifts it received from individuals, which he says helped offset some of the loss of corporate consolidations.
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