United Way Capital Area: Response to Washington, D. C. United Way Issues

United Way of the Capital Area’s Response to Recent Issues Raised at the United Way of the National Capital Area, Washington, D.C.

Several questions regarding management practices at the United Way of the National Capital Area in Washington, D.C. have appeared in the news.

On September 5, 2002, the chief executive of the United Way of the National Capital, Norman O. Taylor, stepped down and the board unanimously adopted recommendations put forth by an independent Task Force. The Task Force presented nineteen recommendations to the board aimed at restoring public trust, improving administration and reporting mechanisms, enhancing financial controls, improving organizational efficiency and adopting a code of conduct.

We want you to know that:

There are 1,400 United Ways in the United States. Each one is a separate, independent and autonomous non-profit organization governed by a local volunteer board of directors.

While there is a commonality in our name and mission, the actions of one United Way have no bearing on another and, in fact, may not be how any other United Way is conducting their operations.

With regard to the specific questions raised regarding United Way of the National Capital Area in Washington, D.C.:

Calculation of overhead expense ratio:
The United Way of the Capital Area (UWCA) calculates its overhead expense ratio (administrative and fundraising costs) against the audited net revenue. This method is consistent with generally accepted procedures, which are endorsed by United Way of America.

Handling of donor directed gifts:
No fee is deducted from contributions received by UWCA from other United Ways (or directly from companies outside of our geographical service area) designated to local agencies.

Donor designations to local member and associate agencies as well as nonaffiliated non-profit organizations are subject to a 10% fee (includes administration and fundraising costs) capped at $100 per designated gift.

Reserve for pledges made, but never collected:
For the 2001 Campaign, a reserve of 6.8% of the gross campaign revenue has been set aside. Should the actual amount of uncollectible pledges exceed the amount set aside for such pledge loss, the difference is made-up from reserves. Should uncollectibles be less than the amount set aside, the excess will be returned to reserves.

Management expense oversight:
The UWCA Benefits and Compensation committee, comprised of board members and other volunteers, reviews all benefits annually and establishes the compensation of the president and chief executive officer based on an annual performance review.

All expenses incurred by George Bahamonde, president and chief executive officer of UWCA, are reviewed by the Chairman of the Board. In turn, each manager reviews the expenses of his/her direct reports.

Any questions? Call Susan B. Dunn, United Way of the Capital Area, 860 493-6820 or sdunn@uwcact.org.

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United Way of the Capital Area
30 Laurel Street
Hartford, CT 06106-1374
Phone: (860) 493-6800
Fax: (860) 493-6809