United Way funding sources demystified
How is Inland So Cal United Way & Inland So Cal 211+ funded?
Funding Sources:
Workplace Campaigns
Individual Donations
Corporate Donations
Bequests
Governmental Grants
Partnership Grants
Non-monetary sources:
Donations of materials
Donations of time
Workplace Campaigns, Individual Donors, and Corporate Donors have the following options in giving to Inland So Cal United Way (ISCUW):
Giving to ISCUW to support its work and mission in the community.
Giving to ISCUW with giving restricted to community grants awarded to NGOs through an application process.
Giving to ISCUW with giving restricted to the donor’s charity of choice.
Giving to ISCUW with giving restricted to a specific program or type of program e.g., education, financial stability, health, or housing.
Governmental and Partnership Grants, by law, are only able to pay for the program specified in the award and cannot pay for community grants administered by United Way.
How has United Way giving changed over time? How does that impact grants given from Inland So Cal United Way to local non-profits?
Across the United States, workplace campaigns have decreased over time. Fortunately, in Inland Southern California, with the increase in population, our regional campaigns have been increasing. Many years ago, most employees, companies, and individuals supported their local United Way through unrestricted giving. As time has changed and donors have changed their giving patterns overall, more donors restrict their giving to a charity or program of choice. This has resulted in stagnant, if not sometimes decreasing, growth in the unrestricted grant funding pool available to award non-profit grants. This means there is more funding that is designated directly to non-profits through donors’ restricted designated giving.
In 21/22, of the $5M given through our workplace campaigns, individual donors, and corporate supporters, 35% of that is given to designated or restricted organizations and programs.
Workplace Giving
Does United Way directly run their own programs?
Yes. Here’s why:
Large federal, state and local contracts have been going to other large metro areas. Some of our local contracts even go to LA, OC, or San Diego counties, simply because there is not an agency in this region that applies or is qualified to apply. We want to bring more funding directly to the region, but also know that usually only midsize/larger organization qualify or have the infrastructure to take on bigger projects. These projects are program specific, directly benefiting individuals.
We also create programs where that program, in that region, scope and size, does not already exist.
Workplace giving campaigns typically will have administration rates that are lower than our full administration rate. Therefore, when a donor makes a gift that is designated to another non-profit, that type of giving is not a sustainable fundraising model for our organization. With designated giving on the rise, we are providing programming that our donors may want to support with a financial gift. This giving allows us to continue to fundraise and offer donor choice to our workplace partners.