Finding Your Data and Dollars: An Overview of Global Corporate Leadership and Membership Requirement M.

Finding Your Data and Dollars: An Overview of Global Corporate Leadership and Membership Requirement M

United Way Global Corporate Leadership
Global Corporate Leadership (GCL) Mission: To deliver impact in communities through philanthropic relationships with national and global corporations. Goals: Increase the following: Resources Under Management Revenue Number of Donors Individual Information ( s, interests, etc.) Loyal Contributor Programs Timing of Reporting Results CSR Grants Cause Marketing Opportunities The key statement here is to be the strategic philanthropic partner of the corporate partner. This goes beyond the campaign. An underlying theme here is the fact that the team is now Corporate Relations with part of the purview to manage partnership with members of the Global Corporate Leadership program with the larger purview being for Fortune 500 companies

Typical Characteristics of a United Way Global Corporate Leader
Annual corporate and employee contributions total a minimum of $2.5 million with at least 50% and/or $1.25 million invested in United Way’s community impact work Partners with United Way beyond the workplace giving campaign Commits to partnering in the U.S. and a minimum of two to three additional countries 25,000 or more employees around the world Currently engaged with United Way in headquarter city The GCL Program has been in existence since 1976 – (367Years)!!! Additionally, in 2012, GCL again reviewed the program and several companies were removed from the GCL program. The HQ UW is managing the campaign There will be another assessment of the companies in the program in 2013

GCL Benefits for Companies
One-stop communication with United Ways worldwide Best practices and benchmark techniques Expert advice for multi-location campaigns, employee volunteer programs and other philanthropic issues Networking opportunities with leading “community-minded” corporations Recognition: Spirit of America Awards, ads, PR, website and more Communication & marketing resources: newsletter, online toolkit with campaign materials, messaging, etc. (liveunited.org/gcltools) Increased efficiency through technology assistance Access to research, government relations, labor participation activities In case you were wondering the value to a company for being in GCL– this lists out some of the key reasons Corporations do not have time or resources to respond to hundreds of calls or s from LUWs They like the one-stop shop Networking with large corporations of similar size or industry is another value-add that they would not normally get at the local level. Again these are just of few of the reasons – but you get the gist

United Way Global Corporate Leadership
3M Abbott Accenture Aetna Inc. Agilent Technologies, Inc. Air Products Alcatel-Lucent Allstate Insurance American Express AT&T Automatic Data Processing, Inc. Avery Dennison Bank of America Best Buy Co., Inc. BMO Financial Group BNY Mellon The Boeing Company Bristol-Myers Squibb Company C&S Wholesale Grocers, Inc. Cargill Caterpillar Inc. CenturyLink Ceridian Corporation Chevron Corporation Chrysler Group LLC Citi Comcast NBCUniversal Costco Wholesale Cummins Inc. Deloitte Delta Air Lines, Inc. Deluxe Corporation Dominion Resources Inc. The Dow Chemical Company Duke Energy DuPont Eastman Kodak Company Eaton Corporation Eli Lilly and Company ExxonMobil FedEx Corporation Fluor Corporation Ford Motor Company GE General Mills, Inc. General Motors GlaxoSmithKline Guardsmark, LLC The Hershey Company Hewlett-Packard Company Hillshire Brands HSBC Bank USA IBM ING Intel Corporation International Paper ITW jcpenney John Deere Johnson & Johnson JPMorgan Chase & Co. Kellogg Company Kimberly-Clark Corporation Limited Brands Lockheed Martin Corporation Macy’s, Inc. Medtronic, Inc. MetLife, Inc. Microsoft Corporation Morgan Stanley The Mosaic Company Motorola Mobility Motorola Solutions Nationwide Insurance New York Life Insurance Company P&G Pfizer Inc. Pitney Bowes Inc. The Principal Financial Group Publix Super Markets, Inc. PwC RR Donnelley Shell Oil Company Sprint SunTrust Banks, Inc. SUPERVALU Target Texas Instruments The Travelers Companies, Inc. Toyota U.S. Bank United Technologies Corporation UPS USAA Valero Energy Corporation Walgreens Walmart WellPoint, Inc. Wells Fargo Whirlpool Corporation Williams Xcel Energy Xerox Corporation If you notice, the font on this slide is small. This list will be a moving list over the next year as the Corporate Relations team will assess membership in the Global Corporate Leadership program with Headquarter United Ways, Key Market United Ways, and companies.

GCL Raised 25% of U.S. Funds in 2011
GCL companies increased overall campaigns by 3% $1,006,831,243 GCL workplace giving campaigns $299,901,130 GCL corporate gifts Total raised in U.S. United Way network estimated $4 billion based on 2011 data $680,535,077 GCL employee pledges Here are final numbers from Based on current projections and campaigns that have gone final…GCL companies are expecting a 1.5% increase This total consists of both employee and corporate contributions, and you can see breakdown of those totals in the pie chart. Beyond campaign revenue includes grants, UWW funding, IDAG, Disaster Relief and sponsorship Campaign Total includes special events and retiree donations Plus: GCL companies raise $12-15M beyond campaign revenue* Beyond campaign revenue includes grants, UWW funding, IDAG, Disaster Relief and sponsorship Campaign Total includes special events and retiree donations 6

Top 10 GCL Companies 2011 Campaigns
Rank Company Name Campaign Total* Employee Total Corporate Total 1 Wells Fargo $58,971,579 $42,206,842 $13,296,952 2 UPS $55,497,397 $45,384,012 $7,169,430 3 Publix Super Markets, Inc. $45,600,000 $25,318,186 $19,700,000 4 AT&T $39,448,056 $31,736,793 $5,772,911 5 IBM $38,360,942 $36,200,000 $2,160,942 6 Microsoft Corporation $36,430,355 $33,956,746 $1,709,412 7 Bank of America $35,254,861 $22,548,122 $11,000,000 8 The Boeing Company $33,776,000 $30,109,000 $3,667,000 9 GE $27,000,525 $18,000,350 $9,000,175 10 Intel Corporation $26,249,409 $16,249,409 $10,000,000 The 2012 list will be available by the end of June. From our final campaigns reported, Wells Fargo will again be the number 1 overall campaign with $75.3 million raised and UPS will remain in the number 2 overall spot with $59.1 million raised. *Campaign Total includes special events and retiree campaigns

Corporate Engagement Platform
Corporation Corporate Social Responsibility Employee Engagement Consumers and Stakeholders Development of Collaborative Strategy Community Needs Assessments Issue Advice and Counsel Impact Products Advocacy International Donor Advised Giving (IDAG) Volunteer Programs and Support Employee Education/Year-round Engagement Skills-Based Volunteering Giving Campaigns Board Seats Communication, Recognition and Public Relations Corporate Sponsorship Cause Marketing Licensing Business Partnerships This is the engagement platform for a true corporate partnership. As mentioned earlier, a true partnership goes far beyond the workplace campaign. It is year-round and involves the United Way network being strong donor stewards. The alignment of the engagement also has a strong underpinning of our three focus areas of Education, Income, and Health. Strong Donor Stewardship Robust Reporting and Metrics Efficient Pledge Processing Strong Relationships Management Consistent Pricing Education Income Health

Enhanced Workforce Strategy
Group meeting Donor name Mass Messaging Raising money to help Total raised Give to anything Employee engagement, CSR, Consumer - Silo Year-round individual engagement/ community convenings Individual information (preferred , home address) Strategic messaging (segmented; language/vehicles) How dollars make a difference (aligned to Bold Goals) Resources under management (RUM) Company behind Impact Area (Deloitte) Integrated Here are examples of how workplace engagement is viewed when a company and United Way has a true year-round partnership

Delivering Value for Local United Ways
Leverage relationships at headquarters to build relationships across the network News and updates on campaigns and other initiatives shared through standardized company profiles, conference calls, webinars and online Global Corporate Leadership account team connects United Ways with local, national or global partnership opportunities Benchmark data and best practice sharing providing strategies proven to increase campaign results Online reporting of campaign results reported to United Way Worldwide Long-standing relationships with GCL companies Communication tools keeping United Ways current on GCL companies Headquarter and key markets engaged to build strategic account plans In case you were wondering the value to a company for being in NCL – this lists out some of the key reasons Corporations do not have time or resources to respond to hundreds of calls or s from LUWs They like the one-stop shop Networking with large corporations of similar size or industry is another value-add that they would not normally get at the local level. Again these are just of few of the reasons – but you get the gist Benchmark data providing strategies proven to increase campaign involvement and results GCL Help Desk – contact the Help Desk with questions about any GCL company: (877) ; Corporate Account Registration Site (CARS) – register to receive special updates on GCL accounts: online.unitedway.org/cars Standardized company profiles – find current information on GCL companies, including campaign dates, processing details and more: online.unitedway.org/gclprofiles Conference calls and webinars – register for calls offering company updates and best practices: online.unitedway.org/gclcalls Online results reporting – access reporting from companies that share campaign results with United Way Worldwide: online.unitedway.org/gclresults Communication tools – download campaign materials, videos and key messaging to help GCL companies engage employees: liveunited.org/gcltools

Resources for Local United Ways
GCL Help Desk – contact the Help Desk with questions about any GCL company: (877) ; Corporate Account Registration Site (CARS) – register to receive special updates on GCL accounts: online.unitedway.org/gclcars Standardized company profiles – information including campaign dates, processing details and more: online.unitedway.org/gclprofiles Conference calls and webinars – register for calls offering company updates and best practices: online.unitedway.org/gclcalls Online results reporting – access reporting from companies that share campaign results with United Way Worldwide: online.unitedway.org/gclresults Communication tools – download campaign materials and key messaging to help GCL companies engage employees: unitedway.org/gcltools Recruitment toolkit – download resources to help recruit new donors: Here is a list of resource for local United Ways Please note it is key to sign up for the Corporate Account Registration Site…this information allows you to receive pertinent information from companies when the information is “real-time” and not posted on United Way Online (e.g. errors in results postings or updated data)

UWOnline- Breakfast Any campaign results postings, profile updates, and major news from Global Corporate Leadership partners will be posted in the GCL section on United Way Online Breakfast. Please check Breakfast every day..

Resources for Local United Ways
GCL Help Desk – contact the Help Desk with questions about any GCL company: (877) ; Corporate Account Registration Site (CARS) – register to receive special updates on GCL accounts: online.unitedway.org/gclcars Conference calls and webinars online.unitedway.org/gclcalls A variety of resources are available on United Way Online If you haven’t already, please check out the newly update United Way Online website with new GCL tools In addition to online resources, you can contact the GCL Help Desk for specific questions about companies if you can’t find the info online You can also sign up for specialized alerts for the accounts you mange through the CARS site. The website allows you to select which company campaigns you work with. You’ll receive s when there is updated or important information about these accounts. United Way Online also gives you access to sign up for conference calls and webinars about GCL accounts.

GCL Company Profiles Standardized company profiles help you find information on GCL companies, including campaign dates, processing details and more: online.unitedway.org/gclprofiles One of the best sources of information are the GCL Company Profiles These are standardized forms that share important information about GCL companies, including campaign dates, processing details, and more. You can access this site at online.unitedway.org/profiles or by clicking corporate information on the home screen of United Way Online

Timing of Reporting Results
GCL Results Goals Timing of Reporting Results Individual Information (home address, s) Two important Goals for GCL. We Continue to monitor the speed in which results are posted. GCL’s Process includes reviewing with corporate clients what can be done each year to release results to the network sooner. GCL tracking this information each year towards improvement. If there are any delays in results posting, profiles will be updated with information and s will be sent via the Corporate Account Registration Site (CARS) list for that company.

GCL Campaign Results Online results reporting – access reporting from companies that share campaign results with United Way Worldwide: online.unitedway.org/gclresults Results are shared on United Way Online for all companies that share their results with United Way Worldwide. Note: not all companies results are posted on United Way Online. How results are shared will be clarified in the company’s profile

Who will provide results?
Local company contact Company directly to United Ways JKGroup Agency Portal Truist Where Raised Reporting Site (truist.com/help) Other Processor directly to United Ways United Way Online (online.unitedway.org/gclresults) It varies on who is providing results to GCL. Beyond Truist, the major “players” in campaign processing are JK Group, YourCause, and CyberGrants. GCL will work with companies to get quality data from third-party processors.

Donor Contact Information Mailing Address Address 67 55 59 46 Another key aspect beyond getting results disseminated faster is getting donor contact information. The Corporate Relations team has seen improvement year over year from 2010 to 2011 and will have another increase when the 2012 numbers are final. # of GCL Companies that release donor contact information

Security: Who can view confidential data?
Executive team Resource Development Finance Not just anyone within a local UW can export data. These are the key roles within local Uws that will have direct access to download

Screen shot of what the ‘export’ screen would look like.

Account Management Structure
GCL Company GCL Account Manager Headquarter United Way GCL is only successful because of its strong partnership with United Ways – especially the Headquarter and Major Market United Ways GCL and the Headquarter United Way work closely to communicate with the company, ensuring that we have a coordinated message and are representing the entire United Way system In addition, part of the U.S. Task Force on United Way’s Economic Model and Growth focused on different models in which the Headquarter or a Key Market United Way would be the lead on the national/ global partnership with UWW/ Corporate Relations providing support. Major Market United Ways Local United Ways GCL Locations GCL Locations

2011 Fundraising Recovery Fee
Company Fee % 2009 Totals UPS 6.7% $2,647,358 Target 7.50% $876,283 Citigroup $376,958 3M $392,748 Total $4,293,347 Another way in which GCL partners look to support local United Way is by offering fundraising recovery fees when their campaigns are processed by a third-party processor. These are the accounts where we have secured a fund-raising recovery fee. This fee - goes back to the local UWs for their efforts for on the ground fund-raising in each local community. Corporate Relations department understands that this type of fee is important to local United Ways - and we are working with GCL companies to establish a fund-raising recovery fee where possible. While there is not always interest from the company, this is on our radar and we are having these conversations with companies.

Fortune 500 – The Opportunity
Current Situation: Relationships with only 280 of the Fortune 500 Companies 99 of these companies raise nearly $1 Billion through the GCL program 181 of these raise $300 Million mostly at the corporate headquarters Significant Opportunity: Grow engagement at/with national partners Spread relationships that are currently only at corporate headquarters Add new companies Looking at the numbers above it is clear that the Global Corporate Leadership team needed to increase their purview. With the new focus on the overall Fortune 500, the Global Corporate Leadership program is a part of the Corporate Relations team partnership management. 23

Fortune 500 Workgroup Charge
Vision: United Way will have multi-year, multi-level and multi-faceted relationships that drive community impact agendas locally and nationally with each of the Fortune 500 companies Goals: Refocus our approach to an operating model for United Way/Fortune 500 Partnerships that both aligns with company interests and drives community change Provide a clear description of roles and responsibilities at the National, HQ and Local United Way Levels Build on our current relationships (both GCL and non-GCL) and bring new Fortune 500 companies into the fold Here is the vision of this Task Force committee…the findings of this committee has lead to the development of Partnerships between local United Ways working on performance challenges with our corporate partners. 24

Summary of Key Findings
Companies have significant concerns about lack of consistent service and spotty relationship management ability across geographies. Companies expressed a great interest in increasing the metrics and reporting received from United Way, especially across multiple geographies. Companies also expressed an interest in growing volunteer engagement opportunities and increasing the number of skill-based volunteer opportunities available. Companies are interested in partnering with us globally but both them and local United Ways are not sure how to access the global network. Urgency is needed because supporters are feeling increased pressure from stakeholders and will look outside of United Way as needed. Part of the work of the committee was to gather information from interviews from our corporate partners and as you see here, the information is clear…Corporate Partners wants consistency in their partnership management in the U.S. and globally. They also want to see the donor stewardship as mentioned earlier in the Corporate Engagement Platform diagram. 25

Big Ideas for our Future State
We need to align our efforts to support the social impact goals of corporate partners who align with our mutual goals We have the opportunity to bring all big companies into the same construct with customized service levels and support Strategy Plans will be co-created by HQ United Way, UWW, Key Markets and the company and will drive our goals These plans will lead to specific MOUs to drive execution Roles will be shared across the network to drive the plan forward Field and corporate leadership will oversee performance and execution. Here is the response of the Task Force Committee and the work that is now being done by members of the Corporate Engagement Partnerships. The first meeting of these 35 United Ways took place at United Way Worldwide during the week of May 13th. 26

Future State of Corporate Relationships – Network Perspective
Level of Engagement by UW Corporate Team Number of Companies Level of Alignment with UW Social Impact Goals Network-wide strategy plans created with roles and responsibilities assigned based on these plans. Aligned with UW social impact goals either through major programs or undesignated funds Limited Number Supporting UW program areas, but limited strategic alignment Similar process to the above but with fewer dedicated resources Critical Mass Here is a look at how the network will look to engage Fortune 500 companies. The comparison the use here will be similar to services received with an American Express card. The limited number would be similar to a Platinum Card The critical mass would be similar to a Gold Card The remaining companies would be similar to the Standard Green Card Please note as with the American Express card, there is a high level of service for all partners No alignment or alignment with limited geographic reach Local UW manages relationship, limited UWW services are used Remaining Companies 27

Corporate Engagement Operational Approaches
HQ United Way is the lead with strong support from UWW and Key Markets Companies with a strong focus and relationship in the local market HQ United Way has capacity to handle relationship on behalf of the network UWW is the lead with strong support from Key Markets and HQ Companies with interests in markets outside of the home market yet a desire for central management Non-HQ United Way is the lead with strong support from HQ and UWW Companies with distributed leadership Here is a look at the different partnership/ engagement models. This is key as the United Way network looks to have more of a distributed leadership model.

Roles and Responsibilities – Who Leads (All Should Participate)
HQ Leads UWW Leads Other Leads Discovery HQ UWW Other Initial Coordination/Prioritization of Markets within Footprint Lead Co-Creation of Plan Templates – UWW Strategy – Shared Metrics – Shared MOU Process – UWW MOU – Shared Relationship Management and Accountability to Company Network Communication, Facilitation and Coordination of Decision Making Project Management of Plan Execution of Plan Local Markets Local Markets Performance Evaluation (Company Satisfaction) Tool Creation – UWW MOU Metrics Delivery, Planning or Coordinating of Centralized Services (Processing, etc) - Longer Range The roles and responsibilities will vary based on the partnership/ engagement model selected Company: Co-Create Plan (Be clear on their expectations), Provide Resources to Support the Plan, Help Build Capacity, Promote the Partnership, Provide Support with Third-party Providers

Expectations and Implications for all Participants
Participate in decision making, co-creation and activities across the network Use the new tools Corporate Engagement Platform, Strategy Plan Template, MOU Template, Etc. Manage data and share information Monitor performance of the network Monitor performance and experience for the company Provide customized services, support and recognition for selected companies Celebrate success and results The key theme here is the practice of interdependence and mutual accountability 30

Implications for UWW Structural Organize around the three approaches
Increase the research function Provide more support to facilitate information sharing and relationship building between United Ways Tools and Templates Increase support and templates for United Ways around the services in the Corporate Engagement Platform International Facilitate more relationships outside the US Both US and non-US companies The implications here further support the move to a Corporate Relations team vs. the sole focus on Global Corporate Leadership

TRUiST resources Website – www.truist.com
Where Raised Reporting portal – Webinar – Accessing your data and Dollars TRUiST support site Getting back to the processing of campaigns, here is information on Truist.

Truist Reporting – Where Raised
Access to where raised reporting from Truist.com. Login is connected United Way Online (same username/password)

JK GROUP 609-799-7830 support@easymatch.com
JK Group Resources JK GROUP Company Name Phone Agency Portal Site Pfizer Merck Dominion Constellation Energy Abbott Wells Fargo Bank of America Agilent GE SunTrust Fluor Allstate Raytheon Wellpoint New York Life Chevron Shell Oil A list of company information for those companies we know are processed by JK. Some of the above companies are NOT GCL. Some have been removed (Merck, Constellation, Raytheon)

Membership Requirement M (Version 2
Membership Requirement M (Version 2.0): Cost Recovery for Designated Pledges

Requirement M Each local United Way will adhere to the following cost deduction standards on designations (agency transactions): United Ways will charge fees based on actual expenses. United Way will not deduct fundraising or processing fees from designated gifts originating by or from another United Way organization.

Purpose Assure the public that:
Donors are charged no more than the actual cost incurred to process and transfer gifts. There are no duplicate charges or redundant service fees assessed to the donor. All United Ways have a consistent, fair, and understandable methodology for calculating, withholding, and distributing fees associated with designated donations (agency transactions). September 16, 2018

Purpose To assure the United Way movement that:
Consistency exists between members in fee application methods Each party to a campaign understands their role and that of the other parties Timely reporting and fund transfer is maintained such that financial accountability standards can be adhered to Members continue to focus on building the most cost effective processes We have a consistent definition/calculation of the actual cost of fundraising and processing of a United Way We have a consistent communication process to assure that only one United Way deducts a fee and all other United Ways know who is playing what role in campaigns. September 16, 2018

Section 1 – Cost Recovery Standards

Standardized Fees Two allowable fees:
Management & General (administrative) fee Fundraising fee Note: The first United Way who processes a campaign is responsible for deducting all fees (unless an alternate fee sharing arrangement is in place)

Maximum Management & General (administrative) Cost Recovery Rate Calculation
(unless an alternate fee sharing arrangement is in place) M&G costs must be allocated in accordance with the UWW Functional Expense Standards September 16, 2018

Maximum Fundraising Cost Recovery Rate Calculation
** * When non-government grants are included in Part VIII, Line 1f with the related expenses for raising those grants included in program services, these amounts must be excluded from the denominator for the calculation of the maximum fundraising deduction. This is required in order to ensure the appropriate calculation of the ratio of campaign fundraising expenses to net annual campaign revenue only. ** Costs related to fundraising for public sector campaigns (i.e. CFC, and other State/local governmental unit campaigns where the allowable fees are negotiated in advance) are included in Part IX, Column D, Line 25, however, the campaign results are reported in Part VIII, Line 1(a), thus must be deducted from the numerator to avoid overstating the calculation, if material. Why fundraising costs for public sector campaigns (i.e. CFC and other state/local governmental unit campaigns where the allowable fees are negotiated in advance) are deducted from the numerator of the fundraising cost deduction calculation: In accordance with the implementation standards for Requirement A for reporting on the IRS Form 990, revenue from public sector campaigns is to be reported on Part I, Line 1(b) rather than on Line 1(a). Since there are other revenues also included in line 1(b) which would not have corresponding fundraising costs, it was determined to be more appropriate to deduct public sector costs from the numerator than to add 1(b) to the denominator. The committee also considered whether or not it was reasonable to determine the costs of all public sector campaigns. Costs for the Combined Federal Campaign are known since they are uniformly required to be reported. However, costs for other public sectors, such as State and City campaigns, may not be separately reported and therefore, reliable cost data may not be available. In such cases, it was determined that these costs may be disregarded in the calculation to the extent the amounts are estimated to be immaterial. This was determined to be reasonable on the basis that there are various other items often included in the denominator, such as legacies and bequests and other endowed campaign gifts, which may offset this by increasing the denominator with little to no increase in the numerator. The committee acknowledges that the calculation cannot capture every circumstance, but that it provides a reasonable basis for cost recovery that can be accurately and consistently applied to diverse situations. September 16, 2018

More about the Maximum Fundraising Fee
The Fundraising fee is deducted by the first processor at the first processor’s calculated rate The Fundraising fee is then retained, split, or totally redistributed depending on the roles within the campaign in accordance with the NPC Policy for reporting Total Resources Generated to United Way Worldwide In absence of an alternate fee splitting agreement, the first processor must collect the fundraising fee on behalf of all parties and at its maximum calculated rate September 16, 2018

Additional Considerations
Standards only apply to Designated gifts that are not part of a governmental campaign Four acceptable methods for a United Way to calculate pledge loss rates Actual amount collected, by individual donor. Actual amount collected, by individual company. Projected loss experience based on a 3-year average of actual losses (for the most recently closed campaigns), by individual company. Projected loss experience based on a 3-year average of actual losses (for the most recently closed campaigns), of the LUW. The decision to permit designated gifts rests with each United Way’s governing board. Thus it follows that the decision on what fee, if any, a United Way will assess to recover its costs for handling designated gifts is taken by its governing board. In as much as a generally applied percentage method may not be considered “fair” to larger donors, who end up bearing the cost of processing smaller donations, some United Ways may have to consider a community level policy for placing a cap on the fee by transaction or a minimum limit on the dollar amount of designations. In cases where United Way governing boards do not approve recovery at the organization’s maximum allowable rate under these standards, the board should understand the net effect is that undesignated gifts are subsidizing designated gifts (in other words, undesignated gifts given in support of United Way’s impact mission-related work are being used to offset unrecovered costs for the processing of designated gifts that may or may not be going to organizations/programs that are in alignment with the United Way’s impact mission work). Therefore, while alternative rate structures are acceptable, care must be taken to ensure that the resulting fees do not exceed the maximum calculated above and the amount of undesignated dollars used to subsidize such policies is fully disclosed to the Board. Irrespective of the calculation itself or the party recovering the costs, the requirement of this Standard is that only one United Way may charge for fundraising and only one United Way may charge for M&G. September 16, 2018

Additional Considerations
Allows for rates lower than the maximum calculated rates provided the actual fee rate assessed is approved annually by board The decision to permit designated gifts rests with each United Way’s governing board. It follows that the decision on what fee, if any, a United Way will assess to recover its costs for handling designated gifts is taken by its governing board. In cases where United Way governing boards do not approve recovery at the organization’s maximum allowable rate under these standards, the board should understand the net effect is that undesignated gifts are subsidizing designated gifts. Irrespective of the calculation itself or the party recovering the costs, this Standard allows for only one United Way to charge for fundraising and only one United Way to charge for M&G. September 16, 2018

Tax Receipts / Acknowledgements
Receipts/Acknowledgements should be issued according to rules published by the IRS Receipts/Acknowledgements should be provided by the first processor (the UW that receives the pledge & payment) per IRS Regulation 1.170A-13T(c) Thank-you letters may be sent by all beneficiaries but should usually not include the amount received to avoid confusion September 16, 2018

Section 2 – Reporting Standards
September 16, 2018

Reporting Requirements
September 16, 2018

Communications Prior to the Campaign
Minimum purpose for the communication prior to the campaign is for: Determination of roles and responsibilities Establishment of alternate cost deduction arrangements Communication of payment methodology September 16, 2018

Determining Roles and Responsibilities
Per the NPC Policy, it is assumed that the UW in whose service area the solicitation takes place is the fundraiser and thus entitled to the fundraising fee, regardless of who processes the campaign It is incumbent upon the first processor to confirm that the other UW(s) are not involved in the solicitation process to retain any of the fundraising fee “Positive confirmation” of roles not required, must only communicate assumptions and allow time for challenge Lacking communication, first processor must deduct and distribute at the maximum calculated rate UW’s who are solely processors (e.g. no fundraising costs on which to base the calculation), should create an average formula based on the cost ratios of the UWs served September 16, 2018

Alternate Cost Deduction Arrangements
Permissible so long as only one M&G and only one Fundraising fee is ever deducted, as long as the amount deducted does not exceed the rate of the processor Any party may initiate a request for an alternate arrangement, but it is ultimately up to the processor to approve such arrangements Regardless of who deducts the fundraising fee, the rate may not be less than the maximum rate of the first processor unless mandated by the donor company or agreed to by all parties Even if mandated by the donor company, the alternate arrangement must be communicated to all parties September 16, 2018

Payment Methodologies
Default assumption is direct payment with fundraising fee paid to the UW who serves as fundraiser for each location Communication is required whenever direct payment method will not be used Communication also required for all new campaigns or if a change in the methodology from prior year Pass through/pay through (in lieu of direct payment) may be requested by a LUW, but is at the discretion of the first processor (assuming the second processor charges no M&G fees and the fundraising fee taken jointly does not exceed the rate of the processor) A processor may accept a LUW’s request to pass through, but cannot require a LUW to accept dollars to be passed through them September 16, 2018

Payment Methodologies
NOTE: The LUW can require direct payment by the processor** The LUW can request paying through the LUW The LUW can not require paying through the LUW Regardless of payment methods, the processor must provide information needed by the LUW to appropriately report campaign results ** To exercise this right, the LUW must make their agency file information available to the processor September 16, 2018

Reporting Requirements During the Campaign
September 16, 2018

Communication – During Campaign
Minimum requirements established Standardized timing & frequency of the communications Standardized content Key point: Required communication elements differ depending on where the funds are raised (processor’s vs. LUW’s service area) and who the report goes to (LUWs, agencies, or donors) September 16, 2018

Communication to United Ways
Timing & Frequency (same requirements whether dollars are raised in processor’s or LUW’s service area): First report by 2/28 for activity thru 12/31 Second report by 4/30 for activity thru 3/31 Final report by 7/31 for all activity through 6/30 Subsequent reporting required for any material adjustments after final report issued Above represents the minimum requirement, more frequent reporting is recommended September 16, 2018

For amounts raised in the PROCESSOR’S service area, the minimum content is as follows:
Name of UW that managed the campaign (in this case, the processor) Campaign year Donor name/identifier and address (unless anonymous) Type of pledge (cash, payroll deduction, etc.) Pledge amount (by donor if available) – this will be only the amount pledged to the UW, not the entire gift raised by the processor Indication of whether report is cumulative or in addition to prior reports Applicable M&G and Fundraising rates to be deducted by the processor and whether fees will be deducted up front or ratably upon collection Shrinkage policy to be applied by the processor (estimated vs. actual) Indication of status of report (initial, interim, or final) Acknowledgment policy (who issues the thank-you letter) Expected date of first payment Paying UW’s standard ACH Code (if payments are to be made by EFT) Note: Last 2 bullets are new… added with the 2012 Revision of the Standards September 16, 2018

For dollars raised in ANOTHER UW’s service area
Additional information must be reported as follows: Donor name (if available), even if they wish to remain anonymous (note that report must, however, indicate donor wishes to remain anonymous) Total pledge amount by donor, including all designated and undesignated pledges Company/donor level detail Indication of the party to whom funds will be paid Reports for dollars raised by processor vs. LUW may be combined provided the fundraiser/manager is clearly identified in the report and all required elements are reported Many software systems already have the functionality to report at the required level but some reformatting may be needed. Note: the processor must report to the recipient UW all amounts raised in that UW’s service area, not just undesignated amounts for that UW. September 16, 2018

Communication to Agencies
Timing & Frequency (same as reporting to other United Ways): First report by 2/28 for activity thru 12/31 Second report by 4/30 for activity thru 3/31 Final report by 7/31 for all activity through 6/30 Subsequent reporting required for any material adjustments after final report issued Above represents the minimum requirement, more frequent reporting is recommended September 16, 2018

Minimum content: Name of LUW in whose service area pledge originated
Campaign year Donor name/identifier (unless anonymous) Type of pledge (cash, payroll deduction, etc.) Pledge amount (by donor if available) Party to whom funds will be paid (through LUW or to agency directly) Applicable M&G and Fundraising rates Shrinkage policy to be applied Indication of status of report (initial, interim, or final) Acknowledgment policy (who issues the thank-you letter) Expected date of first payment Paying UW’s standard ACH Code (if payments are to be made by EFT) Note: Last 2 bullets are new… added with the 2012 Revision of the Standards September 16, 2018

Communication to Donors
No specific requirements on this but there are some recommendations as follows: Thank-you letters to all donors Regular statements of account (billings) for unpaid pledges Annual Tax Receipts/Acknowledgments September 16, 2018

Reporting Requirements After the Campaign (with payments, during the collection cycle)
September 16, 2018

Communication – After campaign (during collection/payout cycle)
Two basic types of payments addressed: Pledge Payments to LUWs and Agencies Fundraising fee distributions to LUWs Standardized: Timing & frequency of payments Minimum payment amounts Minimum content of the accompanying communication Note: These are the minimum requirements - more information is always acceptable September 16, 2018

Pledge Payments (To United Ways and Agencies)
Timing and Frequency: First payment by 3/15 for collections thru 12/31 Minimum requirement of quarterly payouts in first calendar year following campaign** Minimum requirement of semi-annual payouts after first calendar year, until final payment is made More frequent payouts recommended Special accommodations for larger company or individual donor can be made at the discretion of the processor but must be communicated to recipients ** If the recipient organization insists on payment in a form other than the payor’s primary/preferred means of transferring funds, then the payor must take reasonable steps to accommodate that request but may pay less frequently, however no less than semi-annually. New for the 2012 Revised Standards: May a United Way make distribution payments less than quarterly if a recipient refuses to accept the United Way’s primary/preferred payment method? Yes, the following bullet points were added to the document to allow for semi-annual distributions when the recipient refuses to accept the primary/preferred means of payment offered by the payor (see pages 28 and 31): If the recipient organization insists on payment in a form other than the payor’s primary/preferred means of transferring funds, then the payor must take reasonable steps to accommodate that request and may pay less frequently but no less than semi-annually. For example: if the United Way’s primary/preferred transfer method is via electronic funds transfer and the recipient insists on a hard copy check, then the payor may pay that organization semi-annually rather than quarterly. The first payment must be made no later than June 30th If the cumulative amount due to an organization at any scheduled payment date is less than $1,000, then the payor may pay less frequently, but no less than annually (paid no later than March 15th of the following year) and no less than the full amount due, even if less than $1,000. September 16, 2018

Minimum Payment Amounts:
Minimum quarterly payment amount is determined by the Processor Minimum may never be set at an amount greater than $1,000 Must assure that the final payout honors all donor intents by distributing any balance, regardless of threshold chosen for quarterly payments no later than March 15th of the following year September 16, 2018

Minimum content of accompanying reports:
Name of United Way in whose service area funds were raised (i.e. fundraiser) Campaign year to which payment relates Gross pledge amount by donor, if available Collection information by donor, if available; otherwise, by company Costs deducted from pledge and basis for deduction (up front or ratably with collection) Net payment amount (sum of all must equal check total) Payment terms (e.g. direct to agency or through LUW) Pledge loss policy applied Projected payment schedule for remaining amounts due Reminder statement on who issues tax receipt Optional: billing policies and indication of amounts collected but not yet distributed Payment origination date Paying United Way’s standard ACH code (if payments are made by electronic funds transfer) Note: Last 2 bullets are new… added with the 2012 Revision of the Standards September 16, 2018

Fundraising Fee Distributions to United Ways
Timing & Frequency: At least quarterly in the calendar year following the campaign Continue until final campaign payout is made Minimum Payment Amounts: Shall never be greater than $100 cumulatively If the cumulative fees due another UW for a particular campaign never exceeds $100, the processor is not required to remit the fee September 16, 2018

Minimum content of accompanying reports:
Fundraising Rate applied (detailed calculation not required, but must be available upon request) Year to which payment relates Details of any pre-negotiated arrangements Information that enables LUW to determine how amount was calculated (may be provided in detail calculation or general methodology, but detail must be available upon request) Payment origination date Paying United Way’s standard ACH code (if payments are made by electronic funds transfer) Note: Last 2 bullets are new… added with the 2012 Revision of the Standards September 16, 2018

Fundraising Fees – Other Considerations
Fundraising fees received by United Way from a processor must be reported as service fee revenue, not an offset to fundraising expense Outside of the M&G and Fundraising fees, no other fees may be assessed (e.g. separate charge for payments made by credit card, etc.) but varying fee rates can be applied to different types of payments, so long as no fee exceed the maximum calculated rate under the standards. Fees received for additional services (outside of traditional M&G and Fundraising services, e.g. basic distribution services for a company run campaign) must be deducted from the standard cost deduction calculation Note: The second bullet includes additional wording (everything after the parenthetical) as a result of the 2012 Revisions to the standards… Below is the actual wording added in the standards: Unless specifically permitted by these standards, there should be no other fees deducted from a donor’s gift for fundraising or management and general services. For example, there should be no separate charge for donor payments via credit card. This should be included in the overall M&G rate (see Basis for Conclusions #5). Each payment type has its own additional costs, which are not directly charged to the donor. For example, a “bill me” pledge has the additional costs of periodic billings and collections that are not directly charged to that donor. Basis for Conclusions #5 - Why only a Fundraising Fee and a Management & General Fee are allowed: Some respondents to the exposure draft asked if it would be allowable to charge a 3rd type of fee to certain types of gifts so long as the total amount of all fees did not exceed the combined maximum calculated Fundraising and M&G fee rates. For example, if a United Way believed that their actual cost to process a payroll deduction designation was 5% and their maximum M&G fee rate under these standards was 8%, would it be allowable for a credit card gift to be charged 5% for M&G plus a fee equal to the transaction fees charged by their bank for credit card transactions so long as the total dollar amount of all fees was less than 8% on that contribution. The committee noted that the standard Fundraising fee rate combined with the standard M&G fee rate are intended to capture both indirect and direct costs associated with any given contribution (see #4 above) and thus, charging an additional fee for certain direct costs would in effect charge some donors twice for the same transaction. In addition, the committee purposely sought to keep the fee structures within this standard as simple and easily verifiable as possible. They concluded that allowing for a 3rd category of fee would ultimately lead to a wide variety of fees which would make for unverifiable fee structures and therefore would not be allowed under this standard. However, this does not preclude a United Way from establishing varying percentage rates for the M&G cost recovery fee based on varying types of donations provided none of the rates exceeds the maximum allowable rate established in this standard. Thus in the example cited above, while the United Way may not charge 5:% plus a credit card transaction fee, they may charge some designations 5% and other a different rate, up to the 8% maximum rate. United Ways that choose to create a variable rate structure are strongly encouraged to be overtly transparent with donors and agencies regarding the maximum allowable rates under Requirement M and the reason for their own varying rates September 16, 2018

Sample Documents included Requirement M
Sample letter to verify participant roles Sample letter for fee sharing arrangement Sample campaign report Sample remittance report Sample letter to member agencies of a “First Dollars In” United Way September 16, 2018

Frequently Asked Questions
September 16, 2018

1. Is a United Way that uses a 3rd party processor exempt from having to follow these standards?
No, if a United Way contracts directly with the 3rd party processor for services, then the United Way must require the processor to comply with these standards as part of the contract terms Exception: The employer company agrees to pay the cost of processing directly to a 3rd party processor: The contract terms between the company and the processor dictate the rate charged and the overall result is a lower cost to the designated organization These are considered “arms-length” contractual relationships so the maximum cost recovery rates do not apply. Using a 3rd Party to Process Pledges It is the intent of Requirement M to ensure that pledge processing and fund distribution is accomplished as efficiently and at as low a cost as possible so that the maximum value of each donation can be dedicated to mission related work rather than administrative costs. It is not uncommon for a United Way to seek to outsource functions like pledge processing, collection, and distribution of funds to a 3rd party who can lower the overall cost of these activities. Because these are considered “arms-length” contractual relationships, the maximum cost recovery rates defined in this document do not apply, provided that the rate paid to the 3rd party processor is based on prevailing local market rates for such services. There are also situations where the United Way is able to get the employer company to agree to pay the cost of processing directly to a 3rd party processor, thus ensuring that the full amount of the employee donation is passed on to designated organizations. In this situation, the contract terms between the company and the processor dictate the rate charged and the maximum cost recovery rates in this standard do not apply because the overall result is a lower cost to the designated organization. These two exceptions apply regardless of whether the 3rd party processor involved is external to the United Way system (for example a for-profit processor like Truist) or another United Way, so long as the end result is a lower overall cost to the designated organization. Notwithstanding the above cost recovery rate exception, when engaging a 3rd party processor, United Ways are required to ensure that the contract terms reflect the spirit and intent of all of the rest of these standards outlined in this document. In other words, when a member United Way outsources pledge processing, it does not relieve that member from ensuring compliance with the reporting, payment, and other standards outlined in this document. September 16, 2018

2. Can a United Way serving as a 3rd party processor for another United Way charge a rate for services greater than their maximum calculated cost recovery rate under this requirement? Yes, provided that the net resulting cost to the designated organization is less than the cost they would have been assessed were the United Way (not the processor) to have done the processing themselves Notwithstanding the above cost recovery rate exception, when engaging a 3rd party processor, United Ways are required to: Ensure that the contract terms reflect the spirit and intent of all of the rest of these standards in this document. In other words, when a member United Way outsources pledge processing, it does not relieve that member from ensuring compliance with the reporting, payment, and other standards outlined in this document. The intent of Requirement M to ensure pledge processing and fund distribution is accomplished as efficiently and at as low a cost as possible so the maximum value of each donation can be dedicated to mission related work rather than administrative costs. It is not uncommon for a United Way to seek to outsource functions like pledge processing, to a 3rd party who can reduce the overall cost of these activities. These are considered “arms-length” contractual relationships, so the maximum cost recovery rates do not apply, provided that the rate paid to the 3rd party processor is based on prevailing local market rates for such services. September 16, 2018

Expected date of first payout
3. Is there some way we can standardize the format of ACH coding, build a national code database, or at least better communicate ACH codes among ourselves to make it easier to figure how where electronic funds transfers are originating from? Yes, the standards now require disclosure of ACH codes when communicating other campaign & payment information between organizations by adding the following elements to required communications: Expected date of first payout Paying United Way’s standard ACH code (if payments are to be made by electronic funds transfer) (UWW has also created a searchable database of ACH codes available via UW Online at Have you posted your ACH code yet?) September 16, 2018

4. May a United Way make distribution payments less than quarterly if a recipient refuses to accept the United Way’s primary/preferred payment method? Yes, semi-annual distributions are allowed when the recipient refuses to accept the primary/preferred means of payment offered by the payor: If the recipient organization insists on payment in a form other than the payor’s primary/preferred means of transferring funds, then the payor must take reasonable steps to accommodate that request and may pay less frequently but no less than semi-annually. The first payment must be made no later than June 30th If the cumulative amount due to an organization at any scheduled payment date is less than $1,000, then the payor may pay less frequently, but no less than annually (paid no later than March 15th of the following year) and no less than the full amount due, even if less than $1,000. September 16, 2018

5. Why only a Fundraising Fee and a Management & General Fee are allowed:
It is not allowable to charge a 3rd type of fee to certain types of gifts, even if the total amount of all fees did not exceed the combined maximum calculated Fundraising and M&G fee rates. For example, if a United Way believed that their actual cost to process a payroll deduction designation was 5% and their maximum M&G fee rate under these standards was 8%, would it be allowable for a credit card gift to be charged 5% for M&G plus a fee equal to the transaction fees charged by their bank for credit card transactions so long as the total dollar amount of all fees was less than 8% on that contribution. The standard Fundraising fee rate combined with the standard M&G fee rate capture both indirect and direct costs associated with any given contribution Charging an additional fee for certain direct costs would in effect charge some donors twice for the same transaction. September 16, 2018

5. Why only a Fundraising Fee and a Management & General Fee are allowed: (continued)
The standards purposely keep the fee structures simple and easily verifiable. Allowing for a 3rd category of fee would ultimately lead to a wide variety of fees and unverifiable fee structures. However, this does not preclude a United Way from establishing varying percentage rates for the M&G cost recovery fee based on varying types of donations provided none of the rates exceeds the maximum allowable rate established in this standard. In the example cited earlier: while the United Way may not charge 5% plus a credit card transaction fee, they may charge some designations 5% and other a different rate, up to the 8% maximum rate. United Ways that choose to create a variable rate structure should be overtly transparent with donors and agencies regarding the maximum allowable rates under Requirement M and the reason for their own varying rates. September 16, 2018

6. Why United Way Worldwide dues are not applied 100% to the fundraising fee calculation anymore:
Previously dues were reported on their own line of the IRS Form 990 (not part of the functional expenses) In 2010 the IRS changed Form 990 and dues are now reportable in Part IX line 21 Expenses reported on this line are allocable across all functional areas Allocation methods uses should be the same method that is used to allocate indirect expenses on your audited financial statements. Since UWW dues are now allocated across all functional expense areas they do not need to be separately identified as part of the formula. September 16, 2018

This document supersedes the related elements of the following previously issued standards:
Transfer Pricing Guidelines for the United Way System – issued June 1995 Guidelines for Pricing and Processing Agency Designations – issued May 1996 United Way Transfer Fee Ceiling and Fee Splitting for Donor Designations – issued January 1998 Designation Processing Guidelines – issued April 2001 Cost Deduction Requirements for Membership Standard M (part 1) – Issued December 2004 Cost Deduction Implementation Requirements for Membership Standard M (part 2) – Issued December 2004 September 16, 2018

Questions?

Thank You! Ken Euwema, Director – Member Financial Accountability United Way Worldwide – US Network Engagement & Capacity

Finding Your Data and Dollars: An Overview of Global Corporate Leadership and Membership Requirement M.

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Finding Your Data and Dollars: An Overview of Global Corporate Leadership and Membership Requirement M.

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