United Way’s Figures Don’t Tell Full Story of Employee Campaigns

To the Editor:

The Chronicle’s August 27 article on the results of the fall 1997 United Way campaign (“United Way Donations Increase 4.7%, to Record Level”) continued a pattern of reporting on workplace giving that falls far short of discussing and analyzing new data and significant trends that paint a very different picture of United Way campaigns.

A growing number of Fortune 500 companies — includ ing Sears, Mobil Oil, Fidelity Investments, Microsoft, I.B.M., John Hancock, CNA Insurance, and Dell Computers, among many others — as well as about six million federal, state, and local government employees, no longer have a traditional United Way campaign. These employers conduct their own campaigns, which also provide the choice of America’s Charities and/or other federations of charities that are preferred by their employees. Employee satisfaction and total giving increase in campaigns with added choice.

The United Way typically counts all of the funds raised for other federations and charities as part of its campaign. Yet while the national United Way takes credit for the increases, most local United Ways still oppose the inclusion of other charities in these campaigns.

Clearly, more employee contributions than ever are not going to the United Way but to other federations and charities. The evidence? Federal employees now give 70 per cent of the $200-million they donate through the Combined Federal Campaign to federations other than United Way, compared with 32 per cent 15 years ago. In campaigns at six major corporations that include the choice of America’s Charities, United Way, and other federations, employees are giving 57 per cent of their contributions to groups other than the United Way.

A few United Ways around the country have gotten the message that employees want charity collaboration and more choices. United Ways in Washington, San Francisco, Philadelphia, and Rhode Island have led the way in responding to employee interests by working collaboratively with America’s Charities and other federa tions.

However, the biggest story is that workplace campaigns are vastly underproductive. The “United Way campaign” has lost several million individual donors since the scandal in volving former United Way of America President William Aramony. A growing number of employees don’t give. Reaction to the scandal, mistrust of United Way, and increased employee resistance to high pressure are several of the leading causes.

Leadership and a new vision are needed to generate the additional $500-million each year that can be raised with incremental increases in employee participation across the country. Of course, responding to employee and employer concerns and desire for charity choices are keys to reaching this goal.

Workplace campaigns belong to employers and employees. Only by working together can the United Way, America’s Charities, and other federations strengthen our connection with the true “owners” of workplace campaigns. We must address their interests and goals, not ours. We need to work collab oratively, not competitively. When, and if, that happens, we can achieve new, higher levels of giving and caring in workplace campaigns.

Don Sodo
President
America’s Charities
Fairfax, Va.