United Way Business Model for Smaller United Ways

August 16, 2011

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Objectives

Show how our environment is changing and how that impacts our work

Describe the United Way business model and show how it helps communities tackle critical issues

Share effective approaches that help smaller United Ways become more relevant in their communities as well as increase revenue and the number of donors

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• Work of the traditional UW and the need for change

• United Way business model and practices

• Collaborating to increase resources for maximum impact

• Engaging with the community through community conversations

• Questions and answers

Agenda

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Why we exist and the value we add

Mission

To improve lives by mobilizing the caring power of communities around the world to advance the common good.

Value Proposition

We galvanize and connect a diverse set of individuals and institutions, and mobilize resources, to create long-term change.

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The traditional United Way business model no longer meets community needs

Two indicators

1. Problems in our communities are getting worse

2. Contributions to United Way have not kept pace with philanthropy in general

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Why are problems getting worse?

Our communities are changing:

-Aging population

-Widening wealth and income gap

•More complex community needs

•Many more agencies and coalitions working separately on related issues

•Less government support available

•Failure to address underlying issues

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Why are contributions to United Way falling?

More nonprofits competing –generally, and in the workplace

“Reach” of workplace campaign is shrinking

•With shift in mix towards service businesses, more people working in multiple, smaller businesses and locations

•More global companies that lack ties to local communities

Technology makes it easier to give without us

Donor expectations are shifting: want more control, more accountability for visible results

Traditional role doesn’t distinguish UW in donors’ minds

•“One campaign for all” and middle-man role no longer as valued

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Our environment

We face internal and external challenges

• We’re losing donors

• Companies moving to “strategic philanthropy” approach

• Overreliance on old economy business

• There is a large trust gap across age groups

• We have low public trust compared to other large nonprofits

But we also have real assets

• Strong brand

• Large footprint

• We can and do bring people together

• Millions of supporters

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What does this all mean?

• We are going to have to work very differently, building on our assets

• We have to do this with our communities

• Figure out what makes a difference, bring folks together to get it done, and raise money to do it

• We’ve always been an intermediary and we still are, but we have to add value

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to

Mobilizing communities

that

DIRECT IMPACT

COMMUNITY IMPACTpeople, time, talent,

relationships, expertise, technology, money, etc.

financial resources of businesses and

employees

of program clients

of community populations

support services for individuals and families

create lasting create lasting changes in changes in community community conditionsconditions

improve lives

New Model for Improving Lives Emphasizes a Community-level Approach

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United Way Business Model

Measured by :

Lives improved

Individuals engaged: giving, advocating, volunteering

Investor satisfaction and confidence

Long-term, sustained financial growth

Resources under management

Big Ideas :

Build impact strategies in education, income, and health that improve lives

Frame strategies as investment products

Segment and understand your markets

Connect investor aspirations with need/opportunity

Values :

Outward facing, engaged with the community, committed to community success

Accountability/ transparency

Operational Excellence

Customer-centered

Inclusiveness

Innovation/continuous improvement

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What will it take to become a United Way mobilizing for community impact?

A deeper focus on certain elements of the Standards of Excellence

If we wish to be effective, we will need to:

Executing on the United Way Business Model

Operate as an integrated

and aligned organization

Have the right skills,

competencies & leadership

Create & deepen

relationships with

individuals &institutions

Measure, evaluate &

communicate results

Engage and align with the community

Develop strategies and focus

actions

Mobilize resources

Align and execute on plans and strategies

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Engage and align with the community

What it means:

• Working with stakeholders to set community-wide goals and

priorities

What United Way does:

• Builds community knowledge through conversations

• Builds coalitions of multi-sector partnerships

• Communicates how people’s input is making a difference

• Identifies people wanting to do more – the “hand raisers”

What needs to change:

• Base United Way decisions on community priorities

• Listen first, and not just once

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Create & deepen relationships with individuals & institutions

What it means:

• Understanding and deepen relationships with individuals and

institutions aligned around long-term community goals

What United Way does:

• Puts processes in place to make relationships work

• Collects data on supporters and uses it

• Uses technology to track relationship interactions

What needs to change:

• Expand beyond institutional focus to include individual focus

• Building and managing relationships becomes a core

competency

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Develop strategies and focus actions

What it means:

• Using community and expert knowledge to set bold community

goals and build strategies with community partners that get at

the root causes of education, income, and health challenges

What United Way does with partners:

• Sets meaningful community goals

• Builds action plans

• Gets agreement on which partners will play what role

What needs to change:

• Strategies are community-wide, comprehensive strategies, not

United Way strategies

• Strategies have to get at root causes – we can’t direct service

our way into social change

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Mobilize resources

What it means:

• Identifying what it will take to get to your results and giving

donors, volunteers, and advocates a chance to support the work

What United Way does:

• Identifies the resource needs of the community change

strategies

• Develops multi-year plans to mobilize resources

• Gives supporters things to do that will lead to results –GAV

What needs to change:

• Create ways for people to do more than just give, especially in

the workplace

• Generate resources aligned to results

• Money is not the only resource that matters in social change

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Align and execute on plans and strategies

What it means:

• Aligning United Way activities and resources to deliver on our

roles in community change efforts; implementing community

strategies; and sharing accountability

What United Way does:

• Aligns operations and processes to support community strategies

• Execute in a cross-functionally aligned manner

What needs to change:

• Integrated execution replaces siloed behavior

• Creating community change is long-term with interim metrics of

progress

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Measure, evaluate & communicate results

What it means:

• Evaluating results of the community change strategies, adjusting

them, and sharing successes

What United Way does:

• Sets up a system of ongoing data collection and review

• Shares stories of progress to build public will

• Adjusts strategies as needed

What needs to change:

• Measure in populations improved, not just clients served

• Use storytelling to connect your efforts to the larger change over time

• United Way doesn’t take the credit-celebrate partners

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How business practices support each other for success

As we engage and align with the community:

• We identify natural leaders with whom to build deeper relationships

• We gain info that will strengthen our community impact strategies

• We build interest and commitment in supporting community causes through giving, advocating and volunteering on behalf of issues

• We therefore have people and grassroots organizations that will be eager to support implementation

• We communicate back to the community about what we have heard and learned

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How we execute against the Business Model

• Work on things that matter to people

• Connect with more people - get them involved

• Get agreement on strategies

• Give everyone a chance to support the plan

• Tell people about the results

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Some implications for our work

• New skills – change management leadership, grassroots organizing, issues management, strategic communications, advocacy, relationship management, social media

• New content expertise – education, income, and health

• Executing according to value proposition – conveners, “mobilizers”, “aligners” of efforts towards long-term community change

• Diversification of revenue streams – complex grants (federal, state, and private), individual gifts, etc.

• Technology – new platforms to enable individual giving, advocacy, and volunteering; new relationship management tools; back office/financial systems for a new era

• Full organizational alignment – functional teams must work seamlessly

• Network alignment – we must operate as a truly interdependent network that coordinates appropriately

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Brand positioning and promise

Execution to what end?

Advancing the common good by creating opportunities for a good life for all

Pillars or Focus areas

Target issues

Intended results

Indicators

EducationHelping children and youth achieve their

potential

IncomePromoting financial

stability and independence

HealthImproving people’s

health

e.g., academic achievement

e.g., Young people graduate from high school

e.g., Public on-time high school graduation rate*

*As measured by the averaged freshman graduation rate

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Start slow to go fast later because buy-inis critical

When making changes in your United Way’s business model take time to lay the necessary groundwork with:

• Your board and volunteers

• Your staff

• Your community

• Partner organization staff and volunteers

Articulate “what’s in it for them”

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Small size not necessarily a disadvantage

Smaller size often provides:

• Greater agility

• Quicker buy-in

• Greater reliance on community resources

• Closer relationship with stakeholders

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How can we deliver with scarce resources?

Be efficient

• Really leverage volunteer support

• Collaborate and share deeply with other United Ways built on a strong foundation of trust

• Use grant-funded positions

Engage the community

• Have the right investment opportunities

• Built on a case of urgency

• Relentlessly focus on improving lives in the community

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It’s all about managing risk

Risks of changing

–Stakeholders may not understand the new approach

–Possible short-term loss of donors and supporters

–Dissatisfaction of currently funded organizations

–Loss of staff

Risks of not changing

–UW not as effective in addressing priority community issues and changing lives

–UW becomes less relevant to the community

–Continuous loss of funds and donors

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Collaborating to Increase Resources for Maximum Impact

Julie Capaldi, President, United Way of Pickens County, jcapaldi@uwpickens.org

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Community ImpactCommunity ImpactUnited Way of Pickens County

EDUCATION & YOUTH DEVELOPMENT• Early Childhood Development• Academic Achievement and Graduation

FINANCIAL STABILITY• Employment Training and Job Connections• Financial Literacy and Independence

COMMUNITY BASICS• Families and Individuals in Times of Crisis• Victims of Interpersonal Violence• Clients with Disabilities and Special Needs

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The Need for CollaborationThe Need for CollaborationWorking collaboratively to achieve the common good

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What did we gain?What did we gain?The benefits of collaboration

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*As of 3-28-11; TY= Tax Year

VITA ResultsVITA ResultsFive-year trends

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VITA ResultsVITA Results2010 Tax-Year Results

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Tax Year 2006-2010Tax Year 2006-2010Taxpayers Helped

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Volunteer Partnerships: Furman University, General Electric, UWGC Women’s Leadership, Clemson University

VITA ResultsVITA ResultsVolunteer Involvement

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How do we start? Shared vision for what needs to change

Larger UW will take over! Build trust – Give up power

Who will have the power? Build it together

Who will get the credit? Share the media market/spotlight

How do we make it work? Roles, responsibilities, and accountabilities

Overcoming Barriers/FearsOvercoming Barriers/FearsChanging the business model – starting with impact

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UW volunteers and staff leaders must have vision.

Be willing to innovate and create new relationships.

Be willing to lead and take risk.

Change focus from competition around dollars raised to conversation about impact made.

Change takes time.

A few things to rememberA few things to rememberThis is long-term strategic work

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Building Community Engagement through Community Conversations

Katherine Freeman, President/CEO, United Way of Santa Fe County, katherinef@uwsfc.org  

Marte M. Murphy, Board Member, United Way of Santa Fe County, marte3m@comcast.net  

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Learning Opportunities

• Conference Call for smaller United Ways-Thursday, August 25, 4:00-5:00 p.m. Eastern Time

• Office Hours - Tuesday and Thursday 4:00-5:30 p.m. Eastern Time

• Webinar - Enhanced Workforce Campaign for Smaller United Ways, to be held in mid-September. Date to be announced.

• Webinar - Basics of Nonprofit Governance and Board Development, September 14, 2011, 2:00 p.m. Eastern

• New Presidents Forum - January 10-12, 2012

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In conclusion

Ask for help!

• Nearby United Ways

• United Way State Organizations

• Tools available on United Way Online

• United Way Worldwide staff:

• Roger Wood, UWW Small Cities Director roger.wood@unitedway.org

• Mike Wood, Vice President, Field Engagement michael.wood@unitedway.org

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Thank You