Where Does My United Way Money Go

Many people who are considering donating to the United Way often wonder, "Where does my United Way money go?" Even those people who sign up to have United Way donations automatically deducted from their paycheck may not realize exactly how United Way funds are distributed.

How to Value a Charitable Donation

It is important that everyone who donates to the United Way understands how that money is filtered down through the organization and eventually dedicated to the various causes that the United Way supports. Whenever anyone donates to a large organization like the United Way, there's always a concern that administrative costs use up all of the donated funds, leaving very little for the charities that actually need it. Fortunately, with the United Way, this isn't the case.

The national United Way serves as the umbrella organization, maintaining and organizing all of the local United Way branches that directly support local communities. While having local branches of the United Way helps to ensure that only valid charities receive donations, and that community charities are well organized as a cohesive group, the national organization also maintains a strict set of standards that every local United Way must meet. The most important of those standards are as follows.

• Be created as a Section 501(c)(3) tax-exempt organization
• Have a governing body that ensures policies are followed and financial resources are used wisely
• Pay a membership investment to the United Way of America to "support the United Way system"
• All volunteers and staff must provide full and fair disclosure of management, publicity and fundraising practices
• Must undergo a full annual audit by a certified public accountant
• Must self-assess its own impact on the community, finances, and decision making every three years
• Must submit an bi-annual financial report to the United Way of America
• Must charge fees only based on actual expenses, and no fees for gifts from another United Way organization

With such a thorough set of rules and oversight, no donor should ever be concerned that any of their donated funds are getting squandered. Furthermore, with this level of organization and structure, donors to the United Way can feel confident that their funds are being managed fairly and ethically.

When you make a United Way contribution, where your money goes depends on where you want it to go.

Write-In Option: When you fill out your United Way pledge form, you have the option to write-in any specific charity name and address information of the community organization that you want your funds to support. If you do choose to support a specific charity, or list of charities, then the United Way coordinates with your employer to deduct your donating from every paycheck, and route those funds to the charities of your choosing, after the small 10 to 15% administrative fee. To search for a list of charities in your area, use the United Way search form to find your local branch. Then contact your local United Way for the list of local charities they work with and ask for the charity codes that you can use on your pledge form.

Critical Community Needs: Many people choose to let the United Way decide where funds are most need to support the community. In this case, the funds you donate go to a "Critical Community Needs" fund where the United Way volunteers who work with community charities and organizations make educated judgments regarding where funds are most needed. These funds cover things like emergency food and shelter, family counseling and health services, disaster assistance, and even youth education and recreation programs. United Way volunteers carefully examine member agencies through in-person visits and monitoring how the agency uses United Way money to serve the community. If charities do their best to serve the community, they can depend on a certain allocation of United Way funds in order to keep their community services going. This is the central reason why United Way is so important; it organizes annual donations into a fund that charities can budget against every year.

The national United Way lists three core goals that they strive to achieve in every community. Those goals are to:

1. Help children achieve educational achievement
2. Provide families in the community with financial stability
3. Helping to improve the health of families in the community

These are noble goals, and the United Way has been successfully helping families struck by natural disaster, job loss, and educational struggles for many years. While people often choose not to donate to the United Way by rationalizing that they'd rather donate directly to their local charities, most people forget. Or they provide a one-time donation and then fail to continue supporting that organization every year. By donating through the United Way with an automatic deduction from your paycheck, you are pledging that you refuse to forget the critical needs of the community where you live. You are promising that you're there to help your neighbor when they are in need, just as they will be there to support you if you ever need it. Donating to the United Way makes more than just good sense; it's an ultimate expression of support for the many volunteers who dedicate their lives to making your community a better place to live.

For additional information about the charitable organizations, read the following LoveToKnow articles:

• List of Nonprofit Organizations
• Check Out Charities
• Non Profit Salary Review
• Purple Heart Charity

• Tracking Charitable Donations for Taxes
• Fundraising Strategic Plan
• Request for Donation Letters

• List of Nonprofit Organizations
• Furniture Donation Pick Up
• Sample Letters Asking for Donations
• Samples of Non Profit Fundraising Letters
• Samples of Thank You Letter for Donations

• Charitable Contributions Federal Deduction Tax Form
• Charities Take Used Furniture
• Charities Administrative Expenses
• Furniture Recycling Charities
• Non Profit Salary Review