Is Your United Way a Fundraiser or an Impact Funder?

Fundraisers

Many United Ways are fundraisers. Fundraisers spend most of their time and effort conducting workplace campaigns and holding special event fundraisers to raise as much money as possible. Their goal is typically the campaign goal or how much money was raised, and whether or not United Way is successful is most often measured by how much money was raised. After the money is raised, fundraiser United Ways determine how the money will be spent through the allocation process.

Here are a couple of ways you can tell if your United Way is a fundraiser:

  • The campaign goal is announced publicly, and progress reports are provided 

  • Campaign kick-offs and celebrations are held to support fundraising

  • Incentives and raffles are often used to boost fundraising participation

  • Most staff positions/responsibilities are dedicated to fundraising

  • The annual report lists how much money was raised and the number of donors/companies

  • THE BIG TEST: More people ask if you made your campaign goal than ask what your United Way accomplished with the money raised

Impact Funders

Some United Ways are impact funders. Impact funders start by deciding what issue they will impact in their community. Their goal is typically lives changed, such as the number of people who will no longer be living in poverty, or the number of high school graduates. Once they know their goal, they determine what programs should be funded to address the issue and achieve their goal. Funding for these programs is then secured from a variety of sources such as grants, planned giving, sponsorships, special events, and workplace campaigns.  

Here are a couple of ways you can tell if your United Way is an impact funder:

  • There is a goal for what impact will be achieved and progress reports of lives changed

  • The programs to be funded are decided first and then the resources are secured to fund the programs

  • Community impact staff often include positions dedicated to achieving the impact goal

  • The annual report shares statistics and stories of how lives were changed in the community

  • THE BIG TEST: When asked what United Way does, the answer is always the results of the impact such as crush poverty, halt hunger, end homelessness, etc.

For most United Ways, it will be pretty clear whether you are a fundraiser or an impact funder. However, some United Ways will find themselves somewhere in between a fundraiser and an impact funder – a little bit of both. From our research and experience working with over 140 United Ways, we can tell you it is much harder to be successful as both a fundraiser and an impact funder. If you think your United Way is somewhere in between, and you want to talk about why this is so difficult and some options for moving forward, grab some time on our calendar for a conversation. The conversation is free – we talk to United Ways every day so consider this your personal invitation to talk with us.

Which is Easier?

I would never suggest that the work of a United Way is easy, but it is worthwhile to think about ways you could make your work easier. Let’s look at whether it is easier to be a fundraiser or impact funder:

Asking for Support

  • Fundraiser: Help us reach our goal of $1.5 million

  • Impact Funder: Donate to United Way and help your neighbors become financially stable

If you were asking someone to give to United Way, which seems easier to you?

Sources of Support

  • Fundraiser: Most of the money will need to be raised from workplace campaigns and special events

  • Impact Funder: Because you know your issue and what programs will be funded, it opens up grant, sponsorship, and planned giving opportunities

If you wanted to raise more money for United Way, which seems easier to you?

United Way Results

  • Fundraiser: United Way funded 34 programs that helped 75,000 people in our community

  • Impact Funder: Last year, your contribution helped 458 at-risk children enter kindergarten ready to learn

If you wanted to tell someone the results of their contribution, which seems easier to you?

Awareness and Understanding

  • Fundraiser: United Way improves lives by mobilizing the caring power of our community.

  • Impact Funder: United, we will lift 15,000 families out of poverty by 2028

If you wanted to share what your United Way does, which seems easier to you?

What do you think? Does it seem easier to be a fundraiser or an impact funder?

This is What We Do

At Perspectives, we help United Ways make their work easier by helping United Ways become successful impact funders. In 2011, we created the issue focus business model for United Ways which is centered around being an impact funder. We help United Ways increase their resources, create their own results and impact, diversify their funding to end reliance on workplace campaigns, simplify their messaging, and engage more donors and volunteers around a critical issue in their community.

Is impact funding and an issue focus right for your United Way? It could be, but you will never know unless you explore the idea further. Let’s have a conversation about your United Way, impact funding, and an issue focus. Grab some time on our calendar and we’ll talk.

Fundraising, Issue Focus ModelGaryfundraiser, impact, Issue Focus ModelComment