what percent of donations go to the cause in the united way

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United Way may refer to a number of charitable organizations throughout the world but in the United States, United Style generally refers to United Style Worldwide (formerly United Way of America) and/or one of the 1,800 local offices in 40 countries and territories. United Way Worldwide is the leadership and support organisation for the whole network which includes one,256 local offices (approximately 70% of the total number of offices) in the United States (including DC, Puerto Rico, and the Virgin Islands). Us with the most United Style offices include Texas (85), Ohio (71), Pennsylvania (64), Michigan (58), and North Carolina (57).

United Way Worldwideis a 501 (c) (3) – a non-profit system – and is required tosubmit an IRS Course 990 annually, equally does each of the local offices. The 990 is a tax return that provides details on revenue, expenses, avails and liabilities and is invaluable to those who want to know where their charitable dollars are being spent.

To understand the revenues and expenses of the arrangement as a whole, the 990 of United Way Worldwide and the 990's of the local offices need to be analyzed. Given the difficulty of examining all of the local 990's, (which are more often than not named United Fashion along with a geographic location:  i.e. United Way of Central Iowa), an analysis of the 990 submitted by United Fashion Worldwide volition provide the reader with a general agreement of where dollars are spent at the national level.

To understand what happens locally , an individual 990 from a specific local office must exist analyzed. Dollars will flow from the national level to the local level (in terms of grants) and vice versa (in the form of membership dues). Collectively, the full dues nerveless form a big portion of the total acquirement collected at the national level just amount to modest sums at the local level (both in terms of giving and receiving) considering contributions are the primary source of revenue at the local office. Continue in listen that the acquirement and expenses differ at each function considering resources and needs vary by location, but most importantly, know that a layer of management, program, and fundraising costs be at every local chapter function.

The most recent Form 990 (2014) submitted by United Way Worldwide reveals the post-obit:

$89.3 million was nerveless of which $52.5 one thousand thousand (59%) were contributions, $28.seven meg (32%) were dues (from the local offices),  $6 million (vii%) from course tuition, conferences, programme fees, and service income, and $ii.1 1000000 (2%) from investment gains, royalties, rental income, and the gain on the auction of assets. $one.7 million in non-cash contributions were too collected.

$80.2 one thousand thousand (ninety% of acquirement) in functional expenses were reported of which $33.iii million were grants and other contributions to organizations exterior the United states, $3.nine million were grants and other contributions within the U.s.a., and $43 meg of expenses were reported in the following categories:

1. $23.9 million (26%) in compensation, salary, employee benefits, and payroll taxes. $5.5 million of this amount was paid to fourteen highly compensated employees including $i.5 meg to the President and CEO, $524 yard to the Principal Operating Officer, and $450 yard to the President of the United Way Us.  79 people received more than $100,000 in compensation.
2. $7.7 million (9%) was paid to consultants (undefined).
3. $4.4 million (5%) was spent on travel, conferences, conventions, speakers, meals.
4. $iv.4 1000000 (5%) was spent on role expenses, occupancy, legal, bookkeeping, insurance, IT, fees, and temp staff.
5. $2.half-dozen (3%) meg in miscellaneous expenses and depreciation (a non-greenbacks expense).

Of the full corporeality collected ($89.iii meg), $43 million (48%) was spent on the above v categories, while $33.3 meg (37%) was given to organizations outside the US, $three.9 million (5%) was given to organizations in the US, and $9.1 one thousand thousand (10%) stayed within the organisation (on their balance sheet).

At that place are different ways of interpreting the above information but the well-nigh comprehensive way is to look at the total revenue and expense information reported past United Way Worldwide . In this case, each $i in revenue was used as follows:

 $1.00: Revenue

-$0.26: Compensation, employee benefits, etc

-$0.09: Consultants

-$0.05: Travel, conferences, conventions, speaker, etc.

-$0.05: Office expense, IT, temp staff, legal, bookkeeping, etc.

-$0.03: Miscellaneous Expenses

-$0.48: Subtotal Functional Expenses

 $ 0.52: Corporeality Remaining to give to organizations

-$0.37: Provided to organizations outside the US

-$0.05: Provided to organizations inside the United states of america

$0.10: Amount remaining (kept in the organization)

In summary, for every $ane in revenue, United Fashion Worldwide spent 48 cents and saved 10 cents for a total of 58 cents before distributing 42 cents to organizations.

450 organizations outside the Usa were provided $33.iii million (primarily via more than than 550 wire transfers) with the largest recipients in East Asia and the Pacific, and Europe.  The organizations are not listed just the geographic location, corporeality and purpose ("General Charitable Operations" is frequently written) are provided.

99 organizations (all 501 (c) (3)) in the U.s. were granted a total of $3.nine 1000000 with the largest recipients being:

1. Salvage the Children Federation:  $291,770
2. United Way of the Bay Expanse:  $167,500
3. Local Initiatives Support Organization:  $242,195
4. Half the Sky Foundation:  $116,794
5. Room to Read:  $125,000
6. Family Wellness International:  $173,206
7. United Mode of Central Iowa:  $110,000
8. United Way of Greater Atlanta:  $119,500
9. United Way of Northeast Florida:  $117,500
10. Valley of the Sun United Way   $117,500

Each of the above organizations and the overseas organizations (which also include United Way offices) also have their own staff and overhead expenses that relate to management, programs, and fundraising which means that every $1 in acquirement to United Way Worldwide is reduced by 2 sets of these costs (United Mode Worldwide and the recipient system). $1 in acquirement would go farther by bypassing United Way Worldwide and given directly to one of the 99 charitable organizations in the The states that United Way Worldwide gave contributions to or any of the overseas organizations.

Other interesting information from the 990 includes:

• 44 independent contractors received more than than $100,000 in bounty including $5.4 million to the meridian five contractors ($ii.7 million to Turner Construction, $1 million to the Advertising Council, well-nigh $700 g to the Gaylord National Resort – a premier hotel at National Harbor in Maryland, more than $500 k to OTJ Architects, and more than $500 thousand to Forum 1 Communications Corp for engineering science assistance).
• A not-compensated fellow member of the United Manner Worldwide Lath of Trustees also serves equally President/CEO of the Advertising Council,which was paid near $1 million for advertising services.
• Nearly $300 yard was spent on lobbying to influence public opinion and the legislatures.
• The balance canvas indicates that United Manner Worldwide has nearly $76 meg in assets – mostly in publicly traded securities ($28.5 one thousand thousand), real estate and equipment – more often than not buildings – ($xx.half dozen million), custodial funds, annuity, cash value of life insurance, and deferred bounty custodial assets ($12.iii 1000000), cash and savings ($7.7 1000000), receivables ($5.2 million), and prepaid expenses/other assets ($i.7 million).
• Liabilities total $37.3 million with $14.3 accrued pensions, mail-retirement benefits, and deferred bounty, $11.5 are planned gifts, $5.5 in accounts payable and accruals, $3 meg are custodial funds, $three one thousand thousand in deferred revenue and grants payable.
• The cyberspace assets or fund balance at year-end was $38.six million.

In summary, United Fashion Worldwide has a remainder sheet primarily made up of liquid assets and buildings. Their largest obligation is to employees in the form of pensions, benefits and deferred compensation followed by planned gifts which can lead a reader to conclude the arrangement is more than employee focused than assistance oriented. Because the loftier compensation of many employees, salaries, benefits, and organisation overhead expenses which totaled $43 one thousand thousand this past year (and that $37.vi million was given to other organizations while United Fashion Worldwide saved $9 million) and a contribution may feel like you're helping the people of the system get-go and the needy second.

The bottom line: Every $ane in revenue had 48 cents deducted out to pay expenses while 42 cents was given primarily to organizations overseas. 10 cents was kept by the arrangement (remember of it as adding to their savings account).

Questions that ascend include:

• Should the top executive of United Way Worldwide receive a bounty package valued at more than $1.v one thousand thousand?
• What exactly are the $1.vii million in post-retirement benefits carried as a liability on the residual sheet?
• Did United Manner really have to spend about $700 k at the Gaylord Resort?
• Why is United Way Worldwide spending nearly $1 million with the Advertising Council, whose President/CEO is on the Board of Trustees at United Way Worldwide?
• What international organizations received the funds and how much of the funds were spent on management, programme service, and fundraising?
• How many full employees work for a United Way system? And, what percentage of total revenue goes towards paying staff salaries and benefits, part, and overhead expenses?

To read the consummate United Style Worldwide 105-folio IRS Form 990 (2014) click here

To read an updated analysis:  "Where Does $100 to United Way Become," click hither.

To read about "Executive Compensation at United Way (2017)," click here.

Click on "Executive Compensation at United Fashion (2018)" for an update.

Click on "Where Does $100 to United Way Go (2018)" for an update.

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Source: https://paddockpost.com/2015/12/03/where-does-1-to-united-way-go/

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