United Way's Political Campaign Contributions: Ethical?

United Way Worldwide (UWW) is a philanthropic nonprofit that oversees over 1,800 local United Way groups. UWW and its affiliates are devoted to providing education, healthcare, and income support for low-income individuals. UWW raises funds primarily through company-sanctioned workplace campaigns, where employers solicit contributions from their employees through automatic payroll deductions. While UWW has not reported any outside spending in the 2024 election cycle, employees of the organization have collectively donated hundreds of thousands of dollars to political candidates over the last few decades.

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United Way Worldwide (UWW) employees have donated to political candidates

United Way Worldwide (UWW) is a 501(c)(3) organisation, which means it is prohibited from engaging in electoral politics. However, UWW employees have donated to political candidates over the years. Since 1990, UWW employees have given $433,686 to political candidates, with donations increasing over the last three election cycles and peaking in 2020 at $147,490. In that cycle, the largest recipient was presidential candidate Joe Biden, followed by U.S. Senator Bernie Sanders. UWW employees have primarily donated to Democrats in every election cycle over the last 20 years, except in 2014. In the last three election cycles, over 90% of donations have gone to Democrats.

UWW raises funds primarily through company-sanctioned workplace campaigns, where employers solicit contributions from their employees through automatic payroll deductions. 57% of UWW's donations come through payroll deductions, while an additional 20% come from corporate donations. UWW also administers many of the annual workplace campaigns for federal employees in the US called the Combined Federal Campaign.

UWW has been involved in policy advocacy, such as increasing spending for early learning programs and expanding charitable tax deductions. In 2019, UWW actively campaigned for Measure HHH, which sought to build 10,000 new housing units with $1.2 billion. The measure passed with the support of 77.14% of voters. UWW has also been a founder of the Power Forward Communities, a coalition of nonprofits advocating for policies to improve local communities, including decarbonising and a focus on clean energy usage in low-income and disadvantaged communities.

While UWW's workplace fundraising campaigns can encourage higher donation levels among coworkers, they may also lead to employees feeling pressured to participate. Some employees may feel coerced to donate to UWW due to solicitation in their workplace. To prevent coercion, UWW has guidelines on its national website, including having non-managers lead the solicitation and discouraging setting campaigns with 100% participation goals.

UWW campaigned for Measure HHH, which aimed to build 10,000 new housing units

United Way Worldwide (UWW) is a philanthropic nonprofit that manages over 1,800 local United Way groups. In 2016, UWW collaborated with the Corporation for Supportive Housing, the Los Angeles Homeless Services Authority, and the Los Angeles city government under Mayor Eric Garcetti to create Measure HHH. This measure aimed to address the city's housing crisis by issuing $1.2 billion in bonds to develop 10,000 new housing units for the homeless within a decade.

UWW played a significant role in campaigning for Measure HHH, receiving support from labor groups and local left-of-center nonprofits. They actively promoted the measure, which sought to provide Permanent Supportive Housing (PSH) in Los Angeles. PSH offers housing at little to no cost to the homeless, along with support services to help them maintain their homes. UWW's involvement in drafting the measure's language and determining the $1.2 billion figure demonstrates their commitment to addressing the housing crisis in Los Angeles.

The campaign for Measure HHH faced challenges due to rising construction costs, which affected the overall affordability of the housing units. This issue was exacerbated by the COVID-19 crisis, causing a delay in the construction timeline. Despite these obstacles, there is optimism about reaching the goal, with 3,357 supportive housing units already built and another 5,320 under construction, according to the Los Angeles Housing Department.

United Way's workplace fundraising campaigns have been effective in encouraging higher donation levels among coworkers. However, some employees may feel pressured to contribute due to the nature of these campaigns. To address this concern, United Way has listed guidelines on its national website to prevent coercion and ensure that employees donate voluntarily.

UWW is prohibited from engaging in electoral politics

United Way Worldwide (UWW) is a philanthropic nonprofit that oversees over 1,800 local United Way groups. UWW is prohibited from engaging in electoral politics as it is a 501(c)(3) organisation. However, UWW may devote a portion of its expenditures to policy advocacy.

UWW's policy goals in 2019 included increasing spending for early learning programs, expanding charitable tax deductions, and increasing funding for the Combined Federal Campaign, a government workplace provisions program. UWW actively campaigned for Measure HHH, which sought to issue $1.2 billion in bonds for Permanent Supportive Housing (PSH) in Los Angeles. The measure passed with the support of 77.14% of voters.

UWW employees have donated to political candidates, with donations increasing over the last three election cycles and peaking in 2020 at $147,490. In that cycle, the largest recipient was presidential candidate Joe Biden, followed by U.S. Senator Bernie Sanders.

UWW raises funds primarily through company-sanctioned workplace campaigns, where employers solicit contributions from their employees through automatic payroll deductions. UWW also administers many of the annual workplace campaigns for federal employees in the US, called the Combined Federal Campaign.

UWW has faced criticism for its high processing fees, large expectations from smaller nonprofits, and the decline in its direct giving/grants to nonprofits. However, it still provides valuable experience and networking opportunities for those seeking a career in the nonprofit field.

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United Way raises funds through workplace campaigns

United Way organizations raise funds primarily through company-sanctioned workplace campaigns. Employers may solicit contributions from their employees on United Way's behalf, which can be paid through automatic payroll deductions, in the same way that tax withholdings and insurance premiums are deducted from an employee's net pay.

In the past, United Way's workplace fundraising campaigns may have encouraged higher donation levels among co-workers. However, this approach may also have led to employees feeling pressured to take part. United Way has since listed guidelines on its national website to prevent coercion, including having non-managers lead the solicitation and discouraging setting campaigns with 100% participation goals.

According to a 2009 survey by the Consulting Network, only 25% of companies conducted a traditional United Way-only campaign. Private workplaces began to open access to non-United Way workplace campaigns in the mid-1990s, with this trend growing throughout the next decade. As a result, United Way has lost market share, with its share of US charitable contributions decreasing from 3.16% in 1988 to 1.98% in 1999.

United Way Worldwide (UWW) is a philanthropic nonprofit that oversees over 1,800 local United Way groups. UWW gets 20% of its contributions through corporate donations and 57% through payroll withholdings redirected to charity. Almost 25% of UWW's revenues are then redirected to other charities. As a 501(c)(3) organization, UWW is prohibited from engaging in electoral politics but may devote a portion of its expenditures to policy advocacy.

United Way has lost market share due to a competitive philanthropic environment

United Way Worldwide (UWW) is a philanthropic nonprofit that oversees over 1,800 local United Way groups. UWW and its affiliates are primarily devoted to providing education, healthcare, and income support for low-income individuals. United Way organizations raise funds primarily via company-sanctioned workplace campaigns, where employers may solicit contributions from their employees that can be paid through automatic payroll deductions.

In the mid-1990s, private workplaces began to open access to non-United Way workplace campaigns, with the trend growing throughout the next decade. Four federations (America's Charities, Community Health Charities, EarthShare, and Global Impact) formed the Charities@Work coalition, which promoted expanding access to workplace campaigns. Due to the competitive philanthropic environment, United Way has lost market share. In 1988, there were 450,000 nonprofits in the US, and United Way's share of US charitable contributions was 3.16%. By 1999, the number of nonprofits had increased to 715,000, and United Way's share decreased to only 1.98% of donations.

United Way's workplace fundraising campaigns may encourage higher donation levels among co-workers, but they may also lead to employees feeling pressured to take part. Some employees may feel coerced to donate to United Way by their co-workers or management soliciting contributions in their workplace. United Way has guidelines in place to prevent coercion, including having non-managers lead the solicitation and discouraging setting campaigns with 100% participation goals.

United Way has also faced criticism for its accounting practices, with some affiliates double-counting donations made across United Way territories, which inflated their impact and made their expense ratio seem lower by artificially inflating reported contributions. In 2003, United Way of America adopted new accounting standards for its affiliates, requiring all affiliates to adhere to a shared standard of reporting revenue and overhead costs. Some United Ways were not able to meet the new standards and were disaffiliated. Some experts believe that the subsequent decline in United Way's 2002–03 campaign was due to these accounting changes.

UWW employees have also contributed to political candidates, with donations peaking in 2020 at $147,490. In that cycle, presidential candidate Joe Biden was the largest recipient, followed by U.S. Senator Bernie Sanders. UWW has also campaigned for political measures, such as Measure HHH, which sought to issue $1.2 billion in bonds for Permanent Supportive Housing (PSH) in Los Angeles.

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