Designations

In Defense of Designations

The issue of designations can be controversial. While some United Ways promote designations as a way to encourage donors to give, others discourage designations by placing restrictions on which organizations can be designated to or by requiring a minimum designation amount. Still, there are other United Ways that do not allow designations in any form.

While some United Ways insist that allowing designations runs in opposition to the spirit of the United Way movement, others insist that promoting designations embodies the historical roots of the United Way movement.

The reality is that every United Way and every community served by a United Way is unique. Therefore, there is no single, definitive answer for how all United Ways should handle designations.

With that in mind, there are three tenets that a United Way must consider when determining how to address donor designations: 

  • Donor designations are not inherently good or bad.

  • The value of designations depends on the individual United Way’s priorities and community.

  • Therefore, United Ways should select their approach to designations based on their unique situation.

These three points may not seem ground-breaking, but they are essential in determining whether or not designations are right for your United Way. Take for instance the question of whether or not your United Way should allow designations to any 501(c)3 in your community.

It’s easy to understand why a United Way might not want to allow designations to any local nonprofit. A United Way that accepts designations of this type has no control over where those donated dollars are invested in the community. Not only that, but it takes a tremendous amount of work to process donations when donors are designating to everything from the regional food bank to local churches.

If designations of this type limit a United Way’s ability to make strategic investments in the community and cuts into already limited staff time, when would a United Way want to consider allowing donors to make designations to any local nonprofit agency?

Allowing such designations makes sense when – above all else – a local United Way sees itself as a fundraiser. If a United Way prioritizes mobilizing as many dollars as possible during campaign, the best way to do that is to allow donors to give to whatever local nonprofits they want.

In the United States, there are examples of United Ways that have double and tripled their campaigns by encouraging donors to do all of their charitable giving – including church tithing – through United Way! For United Ways that define success according to the amount raised during campaign, there is no better way to maximize success than by allowing donations to be directed to any local nonprofit.

Of course, not every United Way defines success according to campaign. For United Ways that determine success according to measurable impact made in the community, the investment of staff time to process designations is likely not the most effective way to support impact work.

Every United Way is unique, so there is no single right answer when it comes to handling designations. Whether your United Way allows designations with no questions asked, places restrictions on designation amounts or recipients, or bans designations completely, your United Way needs to make the choice that best supports your goals.

If your United Way is focused on implementing community impact, you should assess whether or not staff time currently spent processing designations could be better spent working on impact initiatives. If your United Way wants to raise as much money as possible, you will be well-served to consider redirecting staff efforts to encouraging designations.

Whatever your United Way’s priorities, it is worth looking at your relationship with designations and assessing whether or not that relationship supports your United Way’s goals.

Three New Year’s Resolutions Your United Way Should Keep

newyearsfireworks.jpg

Tis the season! It’s that time of year again when, with ample confidence and overwhelming exuberance, we prepare our New Year’s resolutions. As you contemplate your personal New Year’s resolutions for 2019, there is no reason not to prepare a New Year’s resolution or three for your United Way as well. In the spirit of holiday giving and sharing, we have three resolutions that your United Way should keep.

1. Stop Using Jargon. Why put it off any longer? You know jargon is bad for you, your donors, your community, and your United Way. Make 2019 the year you put an end to using words and phrases that confuse, bemuse, and bewilder anyone outside of your office walls. United Ways are so effusive in their use of jargon that we had a jargon contest in 2016 just to see if United Way staff could tell “real” United Way jargon from “computer generated” United Way jargon.

While words like “allocations process,” “collective impact,” and “core service investments” may cause excitement that borders on hysteria among your staff, your community and donors have no idea what these words mean. Their eyes glaze over at the sound of “fund distribution,” “investment products,” and “key influence sectors.” Using these words outside of the office only serves to push donors and the community further away. You can – and must – tell your United Way story without jargon.

In 2019, make it your United Way’s New Year’s resolution to stop using jargon outside the office. Appoint someone to be your office “Jargon-Buster” responsible for ensuring that your campaign brochures, emails, website, and other communication materials are jargon-free.

2. Help Your Donors Succeed. You would hardly think United Ways need this resolution, until you realize that many United Ways go out of their way to make it difficult for their donors to succeed. When donors succeed, they feel like they have made their community a better place.

Do donors support your United Way because of how much money it raises? No, so examples like thermometers don’t help donors succeed and have got to go.

Instead, show donors how they make a difference by contributing to United Way. Donors will succeed when United Ways share the issue they address, the actions they are taking to address the issue, and the results they are achieving.

When you allow donors to designate their contribution, what does that mean for United Way? It means that other nonprofit organizations are doing a better job at making your donors successful.

Our research has found that there are donors in every community who designate but would consider supporting United Way instead if they understood what United Way accomplishes. Focus the message of your United Way so that donors will successfully recognize the opportunities to make a difference in your community.

In 2019, examine everything your United Way does to make sure it helps your donors succeed. Stop doing what doesn’t help donors succeed and start doing what donors need to succeed. After a year of helping your donors succeed, we can talk about more mundane resolutions like losing weight.

3. Understand Why Your United Way Exists. The eternal, existential question of why your United Way exists is a question you must be able to answer to know when you are successful.

Sadly, most United Way boards cannot tell you why their United Way exists or the purpose of their United Way. Well, let me refine that a little. If you ask a board of 20 people why United Way exists, you are likely to get 20 different answers. On a single board, it is not uncommon for board members to offer a variety of reasons for why their United Way exists, including: to help people, to raise money for local organizations, to provide donors a single place to make their charitable contribution, to make sure local nonprofits are accountable and effective, to understand and address the community’s needs, to help families, to end homelessness, to halt hunger. The list of purposes board members might identify goes on endlessly.

If boards of directors express such a diversity of belief as to why their United Way exists, is it any surprise when donors or the community do not know what their local United Way does? The reason your United Way exists could be entirely different from the United Way in the next county, which makes it even more important to be able to clearly articulate your answer. For your United Way to succeed, your board must have a clear consensus as to why your United Way exists.

Make understanding why your United Way exists one of your resolutions for 2019. What you will find, once your board agrees on why your United Way exists, is an incredible focus in your work. Your board will be able to go out and talk with one voice about why people should give, advocate, and volunteer at your United Way. Your staff will understand what the board values and expects United Way to accomplish. Your donors will support United Way knowing what their contribution will be enabling. Your community will understand how United Way fits into the larger fabric of the nonprofit and social service organizations in your area.  

Those are the three resolutions that we think your United Way should keep in 2019. However, we know that sticking to resolutions isn’t always easy, so our next blog post will share with you our guide for staying resolute in your resolutions.

We wish you a Merry Christmas and a Happy New Year! Best wishes for a successful and rewarding 2019! Now, go get a head start on those resolutions!

Gary 2017 Blog Signature NEW.png
 

Who Cares?

whocaresquestionmark.jpg

Your donors do NOT care about . . .

  •  The number of partner agencies that receive funding from your United Way
  •  The number of programs funded by your United Way
  •  The number of hours spent by volunteers to determine your allocations
  •  Your number of Facebook likes or Twitter followers
  •  The number of priority areas of investment or targeted goals at your United Way
  •  How many of your workplace campaigns had 100% participation
  •  Your total number of donors and the average amount contributed by your donors
  •  How much donors designated to other nonprofit organizations
  •  How many people used your volunteer connection website
  •  The number of people in your leadership giving society and how much they contributed
  •  How much money was invested in each of your priority areas of investment
  •  How much money was raised at your social fundraising event
  •  The amounts contributed by your top 20 workplace campaigns
  •  How many people are on your board of directors
  •  Your campaign goal

. . . because none of these things tell a donor why they should give to your United Way.

Your donors care about . . .

1)  What issue does your United Way address?

2)  What is your United Way doing to impact your issue?

3)  What results has your United Way achieved to impact your issue?

. . . because when your donors know these three things, they will know why they should contribute to your United Way. Learn more about the power of one issue and one bold goal to attract donors by becoming issue-focused on our website here.

Successful United Ways tell donors what they want and need to know.

Gary 2017 Blog Signature NEW.png