1. Introduction to Community Impact
Strengthening Families and Reducing Poverty: Can We Achieve Both?
Alexander Sanchez Senior Vice President Community Impact Leadership United Way of America September 19, 2007

2. Introduction to Community Impact
United Way System
United Way has 100 year history of improving lives
1,297 local United Ways in the United States
Thousands of affiliates worldwide
United Way volunteers and partners work in 46 countries
United Way in the U.S. raises $3.8 billion from 14 million donors annually
Around the world an additional $830 million is raised annually

3. U.S. United Way System 1,297 Local United Ways
Introduction to Community Impact
U.S. United Way System 1,297 Local United Ways

4. Community Impact Model What is it we must do to be successful?
Paul C. Light, Rebuilding Confidence in Charitable Organizations NYU Robert F. Wagner Graduate School of Public Service, Public service brief, October, 2005
Only 19% of Americans said charitable organizations do a very good job running their programs and services, while just 11% said the same about spending money wisely. In addition, 66% of Americans said charitable organizations waste a great deal or a fair amount of money, while almost half said the leaders of charitable organizations are paid too much.
The survey also suggests that rebuilding confidence must involve sustained investment in strengthening the capacity of charitable organizations to achieve measurable impact toward their missions.

5. Community Impact Model What is it we must do to be successful?
Paul C. Light, Rebuilding Confidence in Charitable Organizations NYU Robert F. Wagner Graduate School of Public Service, Public service brief, October, 2005
Showing the impact involves more than pictures of need. Such pictures do little to reassure Americans that their contributions are being used wisely.
Charitable organizations must do a better job of producing measurable results, whether in lives saved and enriched, disease averted, housing rebuilt, pride restored, education enhanced, great art produced, and/or economies strengthened.

6. Community Impact Model What is it we must do to be successful?
Paul C. Light, Rebuilding Confidence in Charitable Organizations NYU Robert F. Wagner Graduate School of Public Service, Public service brief, October, 2005
Charitable organizations must do a better job of producing measurable results, whether in lives saved and enriched, disease averted, housing rebuilt, pride restored, education enhanced, great art produced, and/or economies strengthened.

7. Introduction to Community Impact
Mission of the United Way System
To improve lives by mobilizing
the caring power of communities
The mission of the United Way System is to improve lives by mobilizing the caring power of communities. Improving lives is always the bottom line of our work.

8. United Way’s Traditional Approach to Improving Lives
Introduction to Community Impact
United Way’s Traditional Approach to Improving Lives
Mobilizing communities
support services for individuals and families to 
that 
improve lives
Note to presenter: If you are using the animated version of this presentation, comments marked with the  symbol correspond with animated text.
Traditionally, United Ways have improved lives by
mobilizing financial resources of businesses and employees
to support programs that provide direct services to individuals and families
and thus improve the lives of the clients who receive those services.
This approach has a direct impact on the lives of these program clients.
This is important work, but we have come to understand that it is not enough.
financial resources of businesses and employees
of program clients
DIRECT IMPACT

9. New Model for Improving Lives Uses Two Approaches
Introduction to Community Impact
New Model for Improving Lives Uses Two Approaches
COMMUNITY IMPACT
people, time, talent, relationships, expertise, technology, money, etc.
create lasting changes in community conditions 
of community populations
Mobilizing communities
improve lives  to 
that 
support services for individuals and families
Thus, to the traditional, direct impact approach of
mobilizing the financial resources of businesses and employees to support direct services and improve the lives of program clients,
the new business model for United Ways adds a second approach -- one focused on:
mobilizing the community’s people, time, talent, relationships, expertise, technology, financial assets and other resources
to change the conditions in communities that create so many problems for individuals and families and thus
improve the lives – not just of program clients, but of community populations.
This second approach to improving lives -- by changing community conditions -- is what we call “community impact.”
financial resources of businesses and employees
of program clients
DIRECT IMPACT

10. Introduction to Community Impact
Most Direct Service Programs Address Only One or Two Factors
Community Issue
Direct-service programs, such as the ones United Ways typically have funded, generally focus on influencing . . .
individuals’ knowledge, skills, motivations and behavior, and . . .
family dynamics and resources.
Even when they do an outstanding job of influencing individual and family attributes, most direct-service programs are not designed, resourced, or able to create changes in the host of other conditions that are causing our communities’ pressing issues.
Personal choices
Family characteristics

11. Introduction to Community Impact
Addressing Those Pressing Issues Requires New Approaches and Additional Partners
Economic conditions
Public attitudes
Historical trends
Media messages
Public sector practices
Private sector practices
Neighborhood conditions
System relationships
Family characteristics
Personal choices
Health care system practices
Educational system practices
Community Issue
To address those community issues, we need to deal with the conditions that created the issues in the first place and are causing them to get worse and worse.
Changing those community conditions calls for a new approach as well as additional partners.

12. Introduction to Community Impact
Change #2 Who Helps Create Community Change?
Whoever can play a role
Agencies
Individuals
Corporations
Labor groups
Government
Foundations
Media
Academia
Institutions
Systems
Formal organizations
Informal associations
Neighborhood networks
Faith-based groups
etc.
This new filter lets us see that the answer to the question of “Who will help create community change?” is:
Whoever can help, depending on the particular issues and the specific strategies that we pursue to deal with them.
Agencies often will have a role to play, but
In this new work, our potential partners include every individual and organization in the community.
Again depending on the specific issue and strategy, we are likely to be engaged with a variety of individuals and organizations – some familiar to us, some quite new to our experience.

13. Introduction to Community Impact
Change #4 What Resources Will We Need?
Not only money
People
Relationships
Time
Talent
Wisdom
Expertise
Leadership
Influence
Technology
Financial assets
. . .
When we say “resources,” the first thought is “money.” Money, of course, will continue to be vital to our work.
However, mobilizing resources needed for creating community change is not only about raising money.
We will be mobilizing a range of resources: people, relationships, expertise, influence, technology . . .
Depending on the issue being addressed, the community change strategy being pursued, and the community that is pursuing it, the kinds of resources we need may vary widely.
It will be essential to think of resources broadly to be sure we do not overlook the need and opportunity to mobilize the range of non-financial assets that are available in our communities.
The importance of thinking about resources broadly is tied to another change in our thinking – about the United Way’s role in community work.

14. Introduction to Community Impact
Essential Steps in United Way’s New Business Framework
Develop impact strategies that improve lives
Turn them into investment products
Segment investor markets
Connect investor aspirations with needs/opportunities/strategies

15. Introduction to Community Impact
What Makes the New Business Model Viable?
 Occupies on an open niche (mobilizing community partnerships to achieve community change on pressing issues)
 Aligns with customer interests
 Relates to United Way’s traditional mission
 Builds on United Way strengths

16. United Way’s Strengths
Introduction to Community Impact
United Way’s Strengths
Relationships with diverse stakeholders (business, government, individuals, nonprofits)
Reputation as a neutral player
Ability to mobilize communities
Knowledge of community assets and needs
Focus on outcomes/results
17 million donors
$5 billion+ raised or leveraged
Locations everywhere

17. Introduction to Community Impact
Implications of the New Business Model
The new model requires new ways of thinking about:
Strategies
Partners
Ownership
Resources
United Way’s role
Resource development
United Way operations
The new mission puts United Way on a new road – the road to community impact. This new road brings changes in
Strategies, partners, ownership, resources, United Way’s role, investor relationships, and United Way operations
We’re going to explore each of these new directions.

18. Introduction to Community Impact
United Ways Implementing Impact Areas in their Resource Development Plan
Percent
Source: UWA Research

19. Introduction to Community Impact
United Ways Actively Positioning Impact Areas in their Resource Dev. Plan
Percent
Source: UWA Research

20. Community Impact Mission - Taking Hold
Introduction to Community Impact
Community Impact Mission - Taking Hold
United Ways that report they are actively communicating the Community Impact Mission are much more likely to believe it’s making a difference. They believe:
- the Community Impact Message is having a positive effect (72% vs. 48% system)
- the Community Impact Mission is resonating with their donors (73% vs. 47% system)
- it is having a positive affect on their ability to raise funds (40% vs. 24% system)
This is not just attitudinal; performance is better. Those United Ways that believe the community impact message is having a positive effect have stronger than average resource development performance.
We asked a few questions on the survey specifically about the CI mission. As we saw from the beginning of the presentation, a majority of UWs indicated the CI mission was a positive effect on the campaign. Larger UWs were more likely to say it was a positive effect, but at lower rates than last year. We specifically asked if the CI message resonated w/the donors, and a majority of UWs agreed.
When we looked at only those UWs who were actively communicating the CI mission, the results changed dramatically. Those UWs overwhelming believed that the CI messaging had a positive effect (72%) as well as believing that the mission resonated with donors (73%)
Source: UWA Research

21. Community Impact Model What is it we must do to be successful?
“Gallagher has worked to move the mission away from ‘How much did we raise?’ to ‘How much impact can we have in our communities?’
The new model is to focus on outcomes, not dollars”
-- Knight Ridder News, 10/19/05

22. United Way. Advancing the Common Good
Introduction to Community Impact
United Way. Advancing the Common Good
Creating the opportunities for a good life for all by focusing on:
Education
Income
Health
Maximized income
Increased savings
Financial assets for
long-term stability
Preventive / Everyday Healthcare
Healthier Teens: Drug-free, within weight and reduced pregnancy rates
Quality child care
School readiness
Academic completion
Draft Measurement Areas
Community & Volunteer Engagement
Community Investment
Donor Relationships
2-1-1
Strategies
Resource Generation
Public Policy
Partnerships
Inclusion

23. United Way. Advancing the Common Good
Introduction to Community Impact
United Way. Advancing the Common Good
Creating the opportunities for a good life for all by focusing on:
Education
Income
Health
Maximized income
Increased savings
Financial assets for
long-term stability
Preventive / Everyday Healthcare
Healthier Teens: Drug-free, within weight and reduced pregnancy rates
Quality child care
School readiness
Academic completion
Draft Measurement Areas
Community & Volunteer Engagement
Community Investment
Donor Relationships
2-1-1
Strategies
Resource Generation
Public Policy
Partnerships
Inclusion

24. Economic Challenges
Over 38 million Americans have incomes below the federal poverty level. More than fifty percent are employed.
Income Disparities – Top 20% control 85% of wealth; Bottom 60% control 4%
One out of three households reported using credit cards to cover basic living expenses.
The personal savings rate in 2006 (as a percentage of disposable income), was a negative 1 percent.
2 million people filed for bankruptcy in Approximately 50% of bankruptcies are caused by medical debt.
Average credit card debt among American households is about $9,300.

25. Building the Case Strategic Planning/Initiative Framework Development
INTERVIEWS
THOUGHT LEADERSHIP
RESEARCH
TASKFORCE
Partners, Funders, LUWs, key UW staff, and others
UWA and 25 Local United Way Leaders
New and Existing Research
UW Network and External National Thought Leaders

26. Introduction to Community Impact
Economic Drivers
Key economic factors affecting the ability of average persons to achieve long-term financial stability, include:
Lack of Economic Mobility
Soaring Personal Debt
Wealth Inequality
As evidenced in recent articles in:
The New York Times
The Washington Post
Wall Street Journal
Miami Herald
The Chronicle of Philanthropy

27. United Way’s Financial Stability Partnership™
A National Initiative Focused on Financial Stability
An initiative focused on financial stability leading to independence designed in steps to can help individuals and families to get off the financial tightrope, overcome basic subsistence needs, and allow them to plan for the future.

28. A Stepped Approach to Financial Independence
Introduction to Community Impact
A Stepped Approach to Financial Independence

29. Who Benefits From the Work?
Introduction to Community Impact
Who Benefits From the Work?
Low to moderate income workers by helping them develop and implement strategies that:
Increase Income
Build Savings
Gain and Sustain Assets
Employers by creating a stronger, more crisis-resistant workforce
Communities by increasing home and business ownership, and the financial stability of its residents
This Work Matters
Five years ago, Brownsville, Texas had the highest poverty rate in the nation. In just a year’s time, United Way worked with 1,000 Brownsville families to apply for the Earned Income Tax Credit, resulting in nearly one million additional dollars in that community.

30. Expanding Partnerships
Partnered with United Way and provided an innovative process and support in researching and analyzing Benefits Calculators which can scale and revolutionize access to public benefits system wide
Exploring partnership to support a national agreement for benefits calculator and other technology to advance financial stability work
Partnered with United Way to expand Earned Income Tax Credit (EITC) outreach to 33 markets across the country
Host partner for the EITC and Beyond: Leadership Summit designed to bring UW leaders and elected officials together to focus on EITC and other asset building strategies to strengthen communities

31. Introduction to Community Impact
National UWA Goals
System Wide Investment Over the next five years, the United Way will increase its investment by 50 percent to $1.5 billion by adding targeted, focused and proven strategies that impact financial stability.
Increase Income Through Expanded EITC Outreach Increase the number of eligible families currently not claiming EITC by 25 percent in 200 targeted communities over the next year. Increase the number of eligible families currently not claiming EITC by 50 percent in 400 targeted communities over the next five years.
Bank the Unbanked In 50 targeted communities, reduce by 10 percent the number of unbanked and under banked households over the next year. Across the United Way system, reduce by 25 percent the number of unbanked and under-banked households over the next five years.
Expansive Integration of Technology Through technology, increase enrollment by 25 percent of eligible families in earned public benefits in 20 targeted states over the first year. Through technology, enable all United Ways to enroll eligible families in earned public benefits in 50 states over the next two years.

32. National Launch Events
Introduction to Community Impact
National Launch Events
Brand Forum (Communications)
Los Angeles, January 24-26, 2007
National Public Launch
Washington, DC – Press Club, May 7, 2007
Staff Leaders Conference
Pittsburgh, May 16-18, 2007
EITC and Beyond: Leadership Summit
host partner National League of Cities
San Francisco, July 11-13, 2007

33. Strategies to Leverage Income and Build Assets
Introduction to Community Impact
Strategies to Leverage Income and Build Assets
Earned Income Tax Credit (EITC) Outreach
Volunteer Income Tax Assistance (VITA)
Individual Development Accounts (IDAs)
Financial Literacy Education
Freddie Mac Credit Smart Initiative
Freddie Mac Loan Prospector Outreach
Lending Consumer Rescue Fund
Don’t Borrow Trouble Campaign
FDIC Money Smart Train the Trainer
Partnerships w/ Financial Institutions
Marketing of Existing Financial Products & Services
Development of Alternative Products & Services
Multi-benefit Enrollment
Use of Benefit Calculators (N2L)
City of San Antonio, Department of Community Initiatives (Funding & Site Operations)
Annie E. Casey, Making Connections (Funding & Site Operations)
IRS (Software & Technical Assistance)
Catholic Charities (Volunteer Recruitment and Placement)
United of San Antonio & Bexar County (Funding & Outreach/Marketing)

34. Introduction to Community Impact
Breaking the cycle of poverty….. by helping individuals access information, save, and acquire assets with long-term value
Access to Information & Education
Financial Literacy
Introduction to Services
Community-based
Case Management
Working Families
Change in Behavior
Acquire Assets
I use this to illustrate the continuum of services, education, and (high touch) care that low income families need to eventually meet their asset goals –
You have to realize that no one comes as an empty vessel – you have years of assumed spending/saving behaviors and patterns that people either have to learn an/or unlearn.
This is about providing individuals and families with access to information and resources that allows them to make the most informed decision possible –
Let me ask you who doesn’t want Choice and Control over their hard earned dollar.
Let me caution you – there is an extreme difference between being in a Traditional versus non-traditional market – you have to create education and program opportunities that allow people to move between a traditional and non-traditional market and be sensitive to where people enter into the continuum
More informed consumer market – increased access to information and resources
Two way street (developing a untapped market) convenience/ facilitator of relationships between low-income families and traditional financial market
Financial Education and asset building programs are needed and effective complements to traditional welfare, adult education, workforce development, and work support programs, providing participants with tools needed to make sound financial decisions, participate in financial mainstream financial system, move up the economic ladder and achieve the American dream.
Essential elements to point our this is about creating programs and creating partnerships that leverage supplemental resources and assist individuals and families to use their IDA so that they can leverage other asset building opportunities.
Half of all wealth comes from generational transfers
Homeownership
Asset Development Strategies
EITC / CTC / Edu. Credits
IDAs
Credit Rebuild
Asset Building and Preservation Education Campaigns
Multi Benefit Enrollment
Marketing & Development of Financial Products & Services
Financial Literacy + High-touch
Case Management
Micro-Business
Higher-Education

35. EITC Return On Investment
Introduction to Community Impact
EITC Return On Investment
San Antonio
2002
2003
2004
2005
2006
Number of Sites 41 32 27 26 28
Returns Completed
10,400
15,244
20,850
25,962
30,000
E-Filed 3%
73%
93%
98%
100%
Returned to Community
$12 Million
$ Million
$30 Million
$40 Million
$45 Million
61% were female and 39% were males.
Eight in ten (81%) EITC filers identified as Hispanics, 10% as African Americans and 8% as White, not Hispanic.
Slightly over one-third (35%) of the EITC filers were homeowners, while nearly half (49%) indicated that they rent their residence.
55% of the VITA filers filled as “single”
44% w/ health insurance – 34% w/out health insurance
7% indicated that they receive Food Stamps
63% of the filers had checking accounts.
51% had savings accounts.

36. EITC Return On Investment
Bank of America, $500,000 investment in FSP
30 Communities
Tax Year 2005
Tax Year 2006
Total # of Volunteers
4,698
8,931
Total # of Volunteer Hours
100,386
276,329
Total # of Filed Tax Returns
161,635
225,824
Total Amount of EITC Returned to Clients
$61,905,252
$83,262,273
Total Amount of Tax Refunds to Clients
$199,306,955
$269,336,295
Bank of America, > $21,000,000 ROI

37. Community Impact Model What is it we must do to be successful?
Paul C. Light, Rebuilding Confidence in Charitable Organizations NYU Robert F. Wagner Graduate School of Public Service, Public service brief, October, 2005
Significant positive predictors of confidence in the sector:
Whether they have confidence in the United Way
Whether they believe charities do a god job helping people
Whether they believe charities do a good job spending money wisely
Whether they have higher levels of education
Whether they believe charities do a good job running programs and services
Whether they have confidence in the Red Cross
Whether they have higher income
Whether they are older
Whether they see less charitable waste
Whether they are female

38. Community Impact
When all of the pieces come together, not only does your work move toward greatness, but so does your life.
For in the end, it is impossible to have a great life unless it is a meaningful life. Perhaps, then, you might gain that rare tranquility knowing that you’ve had a hand in creating something of intrinsic excellence that makes a contribution.
Indeed, you might even gain the deepest of satisfactions: knowing that your short time here on this earth has been well spent, and that it mattered.
--Jim Collins, Good to Great

39. Introduction to Community Impact
These and other resources are tools for helping our United Way focus on what matters.

40. Introduction to Community Impact
Thank You