1. United Way Business Model for Smaller United Ways August 16, 2011

2. 2 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

3. 3 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

4. 4 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.

5. 5 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

6. 6 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

7. 7 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

8. 8 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

9. 9 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

10. 10  to  Mobilizing communities that  DIRECT IMPACT COMMUNITY IMPACT people, 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  improve lives New Model for Improving Lives Emphasizes a Community-level Approach

11. 11 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

12. 12 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

13. 13 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

14. 14 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

15. 15 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

16. 16 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

17. 17 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

18. 18 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

19. 19 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

20. 20 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

21. 21 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

22. 22 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 Education Helping children and youth achieve their potential Income Promoting financial stability and independence Health Improving 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

23. 23 Start slow to go fast later because buy-in is 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”

24. 24 Small size not necessarily a disadvantage Smaller size often provides: Greater agility Quicker buy-in Greater reliance on community resources Closer relationship with stakeholders

25. 25 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

26. 26 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

27. 27 Collaborating to Increase Resources for Maximum Impact Julie Capaldi, President, United Way of Pickens County, jcapaldi@uwpickens.org jcapaldi@uwpickens.org

28. 28 Community Impact United 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 28

29. 29 Bold community goals require active collaboration with non-traditional partners. Focus shared goals to create maximum impact. Seize funding opportunities to resource shared goals and initiatives.  AmeriCorps  IRS Volunteer Income Tax Assistance (VITA) Program The Need for Collaboration Working collaboratively to achieve the common good 29

30. 30 Increased financial resources  Secured an IRS VITA grant  Secured an AmeriCorps member grant Capacity and Infrastructure  Increased from 12 VITA sites to 18 sites  27 AmeriCorps members supporting over 20 community partners. Provides more than $1.2 million in direct service staff What did we gain? The benefits of collaboration 30

31. 31 *As of 3-28-11; TY= Tax Year VITA Results Five-year trends 31

32. 32 VITA Results 2010 Tax-Year Results 32

33. 33 Tax Year 2006-2010 Taxpayers Helped 33

34. 34 Volunteer Partnerships: Furman University, General Electric, UWGC Women’s Leadership, Clemson University VITA Results Volunteer Involvement 34

35. 35 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/Fears Changing the business model – starting with impact 35

36. 36 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 remember This is long-term strategic work 36

37. 37 Building Community Engagement through Community Conversations Katherine Freeman, President/CEO, United Way of Santa Fe County, katherinef@uwsfc.org katherinef@uwsfc.org Marte M. Murphy, Board Member, United Way of Santa Fe County, marte3m@comcast.net marte3m@comcast.net

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39. 39 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

40. 40 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

41. 41 Thank You