Column: Who decides how United Way funds are spent?

Published 12:00 am Monday, June 11, 2007

This is the first in a series of columns about the United Way of Freeborn County, a local nonprofit organization that has supported social service programs since the 1930s. Each article will have a different United Way focus, some examples are: Explain who the partner agencies are and what do they do, who organizes the campaign, or who benefits from United Way dollars.

My role with United Way has changed since first participating in a campaign in the mid-&8217;70s as volunteer asking businesses to donate. In 2002 I had the privilege of serving as campaign chair and I became the full-time executive director of United Way of Freeborn County in July of 2006.

One characteristic of our United Way that continues to amaze me is it works so well with a small staff and hundreds of volunteers. Volunteers serve on the board of directors, help with the campaign, direct fundraisers, stuff envelopes and anything else the United Way is involved in.

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There is a formula to estimate a dollar value of volunteer time that is used when filing the organizations tax forms. Last year the value of volunteer&8217;s time for United Way of Freeborn County was $212,000! To anyone who has volunteered, thank you from the thousands of Freeborn County residents who have benefited from the United Way.

Two questions I am often asked are &8220;Who decides how the money is divided between the different agencies?&8221; and &8220;How does United Way decide how much money to raise?&8221;

The answer to the question, &8220;Who decides how the money is divided?&8221; involves 20 volunteers serving on a committee called the Allocations Committee. These 20 people make a recommendation to the board of directors that specifies how much money should go to each program for the coming year. The entire process is well-organized, very methodical, and spans 16 months!

The allocations process starts in September when the Allocations Committee reviews new programs. They determine if the programs serve Freeborn County residents in at least one of five targeted service areas: nurturing youth and children; assisting people in crisis, increasing self sufficiency; strengthening families; supporting older people.

If it fits within one of these areas they are sent an application in December, the same time nonprofit agencies already United Way partners are notified. The application is extensive and requires information about the agency, about the program, and detailed financial information.

The application must be completed and returned to United Way by the end of March.

The Allocations Committee meets in April and they break into teams of four or five. Each team analyzes four or five programs following a specific process.

They review the application, they meet with agency staff and question the program, and then they meet with the agency financial staff to ask financial questions.

The team members discuss the program and how it relates to what United Way does, they discuss if the amount of money requested is reasonable, and then they agree on a financial recommendation. The recommendations for allocations vary from nothing, half of the request, the full request, or more than requested.

The entire Allocations Committee meets in May when each team reports their recommendations. The committee discusses each program and then votes to follow the team&8217;s recommendation or modifies it. The allocations chairs make the recommendation for funding to the board of directors at the May board meeting.

The board will use the Allocations Committee recommendation to determine how much money needs to be raised in the fall campaign, which is the second question. The key word is &8220;needs&8221; &8212; the amount of money asked for in the fall is what is needed to keep the programs going. This formula is used to find out how much to raise:

United Way operating expenses + pledge loss + allocations recommendation = Need

January is the Allocations Committee last meeting. The campaign is completed and the amount raised is known, this committee has three possible responsibilities.

First, if 100 percent of the need was raised, they can vote to follow their original allocations recommendation. Second, if the campaign did not raise 100 percent of the need, they must decide which programs to cut. Third, if more than 100 percent was raised, they decide which programs to add to their allocation. Clearly the first and third choices are most desirable.

2007 will be a challenging year, there are more people asking for help from United Way supported programs. Campaign Chairwomen Karol Held and Angie Eggum are enthusiastic and positive our communities will see the value in what United Way does for their neighbors and they will provide the resources required, both financial and time. The theme Karol and Angie have chosen is &8220;Touch A Life,&8221; something we all do when we support the United Way. Watch for their articles in the coming months, they will highlight different services and needs that are addressed each day by one of the partner agencies.

United Way is an important part of our community, it works for the common good of all of Freeborn County, and it does what matters.

David Bonnerup is the executive director of the United Way of Freeborn County.