Final Project: Strategic Analysis of United Way Worldwide
Introduction
The United Way is a non-profit organization focused on improving the lives of the populations living in underdeveloped communities. According to Organizational background United Way Worldwide. (2020), the organization achieves this through the power of the healthy volunteer base and its citizens' care. The core competency of the organization and the rationale for choosing it for my study is by the multiple local and multinational United Way communities interconnected throughout the world. The organization's foundation is based on a group of caring individuals who saw he need to help create awareness of the needs and the living conditions of the neighbors within their communities. According to Worthy (2019) non-profit organization have the significant role as developing ways through which they can alleviate certain social problems amongst communities. The institution was set out to raise funds distributed to local service providers that would do the distribution in line with the needs of their respective communities. The local organizations thrive from the support of efficient and effective local volunteers that ensure the proper use of the resources as availed through donors and volunteers on behalf of the affiliated way organization.
The United Way further worked on developing great alliances with other significant charity institutions throughout they would and coordinating the volunteer support groups among them. According to Organizational Background United Way Worldwide (2020) the volunteer presence in the institution invests in not only funds collection and fundraising activities but also contributes a significant number of hours offering services to the needy people in communities. Studying the events of the United Way amongst populations and long-lasting relationships amongst the organization and other entities in the non-profit sector develops essential to trust on the appropriateness of the organization as a study choice. This project will cover an organizational profile, leadership and communication, financial management and ethics, and a strategic analysis of the organization.
Mission statement
A study of the operations at United Way indicates that the organization exists to improve lives by mobilizing the caring power of communities worldwide to advance the common good. United Way Worldwide (2020) notes that the United Way fights for the health, education, and financial stability of every person in every community. We win by living United, by forging unlikely partnerships, finding new solutions to old problems, mobilizing the best resources and by inspiring individuals to join the fight against their community's most daunting social crises.
The organizational goals at United Way are illustrated through the vision. Organizational Background | United Way Worldwide (2020) notes that the United Way believes in the importance of education and strives to minimize the number of students who drop out of high school annually. They also work on helping families to become independent economically. Lastly, the organization strives to educate individuals to live a healthy lifestyle. The organization's vision statement entails a summary of the goals and also forms the basis through which they choose their partners and ways to administer their resources. It is an expression of the organization's desire to improve the livelihoods of communities at global levels.
History
The United Way was formed in the year 1887 by Frances Wisebart Jacobs, the Rev. Myron W. Reed, Msgr. William J.O'Ryan, Dean H. Martyn Hart, and Rabbi William S. Friedman developed an institution to benefit an area of health and welfare agencies. The organization started by collecting funds for local authorities to coordinate relief services, counsel and refer clients to cooperating agencies, and make emergency assistance grants for cases that could not be applied.
The United Way is currently bringing people, communities, and organizations with a common cause, vision, and path together as they forge ahead in their bid to serve the nations. In most cities globally, the United Way is the only non-profit empowering education, health, and financial stability. It is among the few non-profit institution that brings people from all walks of life together. Engaged in more than 40 countries and territories globally, the organization empowers big ideas and actions through donations, volunteering, and speaking out.
Current position
United Way Worldwide (2020) indicates that there are around 1,800 local United Ways globally that struggle to fulfill the mission of the organization to communities globally. The organization serves over 40 countries and territories, with 2.6 million volunteers working in the organization to improve lives and create opportunities. Through donations and partnership programs, the United Way organization raises close $5 billion annually.
The organization was formed to offer communities help in the diverse problems they face in daily life. Some of the organization's tasks are to help with health, education, and also provide financial assistance to the people. United Way Worldwide (2020) indicates that currently, the organization records indicate that in Korea, more than 24,000 people access better healthcare, another group of more than 100,000 children given books In Australia, and a whopping 188,000 plus individuals in Denver trained to gain financial sustainability. The United Way is thus on the right track in fulfilling the mission to which it was formed.
United Way organizational structure
Non-profit organizations are bound everywhere globally, and some of these organizations are engrossed in charity work. In many cases, these organizations have specialized or dedicated functions such as serving to protect the rights of the unfortunate in the society access essentials such as education and health. The United Way is dedicated to leadership and support for the network of its nearly 1800 community-based United Ways in over 40 countries and territories ("Organizational Background | United Way Worldwide," 2020). The functions of the organization make it best suited with a simple organizational structure.
According to Worthy (2017), the management of non-profit organizations is unique and different from other business and government entities since they rely on donor support and volunteer workers. They also have to pursue missions concerning their values and principles. According to United Way Worldwide (2020) the management structure of the United Way organization starts with the founder on top of the ladder, followed by the board of directors. After the board of directors comes the officials at the third place. These comprise of the president, the vice-president, secretary, and treasurer. The organization further has five standing board committees in charge of the various strategic, generative, and fiduciary ways to fulfill the mission and vision. Lastly, the organization has a group of staff comprising paid staff, volunteers, and general members.
The CEO at United Ways and the board of directors are fully accountable for the reputation, performance, and stature within the community. The success of the organization in serving the community relies on the CEO and volunteer leaders' effort. The simple organizational structure within United Ways combined with quality leaders enhances the organization's performance as a fundraising and fund allocation organization. The simple structure is earlier aforementioned serves the non-profit organizations exemplarily.
United Way leadership and communication
Leadership channels in a United Way take up more of volunteer roles more than being employment positions. The individuals at the leadership positions of the organization illustrate the desire to understand the various challenges faced by local communities and dedicate their service towards uplifting the individuals' lives. United Way Worldwide (2020) illustrates that working with local communities and developing means through which the organization solves local problems in the communities requires leadership at the local levels. The need to maintain the organization's mission and vision statements and the reputation of the organization globally requires that the local administrations be held accountable by a global leader board. As Worthy (2019) notes constant communication amongst the leaders, employees, and volunteers maintain the progress in the organization. The United Way's leadership and communication systems show a centralized form of governance where all the strategies are managed from a single platform. The leadership method at the organization is the basis for the success in the vision and mission strategies in a United Way.
Leadership
According to United Way Worldwide (2020) the United Way organization is managed by a single board of directors that united the organization's global components. The team of 12 executive members’ leads by the president, who is also the chief executive officer, oversees the organization's activities and operations globally. The team entails leaders of the organization's different segments, such as the United States chapter, and the various departments in the organization like technology, operations, finance, and others, to illustrate the need for collaboration to succeed in the organization's efforts to serve communities around. The art of bringing together the efforts by all the global leaders at different levels of the organization emphasizes the unity and togetherness of the organization's service to the people.
The organization's policy about recruitment procedure recommends that the local United Way organizations recruit form their respective communities. The system is to ensure that the organization taps on the local talents and also as a way of giving back to once community. The efforts of an individual and the potential to serve in the organization diligently are recognized, and the individual retained and given more responsibilities. For instance, United Way Worldwide (2020) illustrates that Suzanne McCormick, the current president, United States chapter came into the organization as the President and Chief Executive Officer for United Way Suncoast in Florida. Thus, the organization absorbs the talent of the current leaders and employees within the organization from the local branches.
The United Way vision for talent indicates that the organization attracts and retains diverse expertise and leadership essential in improving the lives of the people and forge ahead of the common good. The organization thus nurtures the leaders of the organization from the volunteers and employees within the local branches. The spotted talents stand a chance to succeed positions form the organization's preceding leaders. For instance, the current president Brian A Gallagher started his career at the organization in 1981 and has served the organization in five local United Way until when he became the president of the United Way of America (United Way Worldwide, 2020). Gallagher worked in this position for seven years, 2002-2009, when he became the president of the United Way worldwide. Thus, the leadership of the organization nurtures talents from the young leaders of the organization to take up leadership roles in the future.
The leadership and governance at United Way rely on the direction within the local organizations. The local organized ways are charged with the responsibility to ensure that their respective branches fulfill their missions. In this way, Worthy (2019) indicates that they get the legitimacy, trust, and support of the local community and the international United Way systems. The local organization's CEO and board of directors are in charge of the reputation, performance, and status of the organization within the community. The entire international United Way system relies on the CEO and volunteer leaders at the local organization for the organization's success.
The main advantage of the system is that the local community volunteers understand the main concerns of the local communities. Local volunteers’ will thus represent the critical issues of the local communities to the more considerable United Way. They are in a better position to develop lasting solutions to improve the livelihoods of the people. On the contrary, the local leadership of the organization represents the global organization. Thus a mistake or inappropriate action by the local leaders affects the reputation of the larger organization.
Communications
Communication amongst members of an organization and the external stakeholders is essential for the success of an organization. The United Way leadership through the organization's communication department is responsible for disseminating necessary information to external stakeholders. As indicated by United Way Worldwide (2020) a significant way through which the organization gets to communicate to the stakeholders is through their annual reports, form 990, and also the consolidated financial resources. These documents provide critical information concerning the operations of the organization. The organization's website contains essential information on the leadership structure, vision, and mission, among other operational aspects of the organization that a volunteer or potential employee may want to know.
Internal communications in an organization include the sharing of information amongst leaders, leaders, and employees and also amongst the employees. In a United Way, these are attained through memos, meetings, and direct mails. The advanced tech technology in the current world allows the employees to link up through extranet and intranet networks that secure communication amongst sets of stakeholders.
The United Way management utilizes the existence of social media platforms to spread out information on the organization to the public. These include LinkedIn, Facebook, Twitter, Instagram, a news blog that the communication departments of the organization post routine information on the organization's operations programs. For policy changes and actions, the organization, at times, writes direct mails to the stakeholders and other public members that are close to the company and need direct information from the company.
United Way Worldwide (2020) notes that the organization has a network of brand ambassadors that aid in carrying the organization's good work far and beyond to drive a social impact amongst communities. The brand ambassadors use social media as the primary communication channel to reach out to the public. The organization's brand ambassadors are influential individuals in society with significant followership in the media. The works of these individuals inspire masses to follow in their steps and support such a charity as United Way for the betterment of the local communities.
Fundraising and financial management at United Way
United Way Worldwide (2020) indicates that the United Way consists of an umbrella of around 1800 local agencies distributed in over 40 countries globally. Most donations to the organization stay in the local organization to support community projects within the region, supporting the designated charity projects. At the same time, the other portion is distributed to cover fundraising and administrative expenses. The local United Way branches submit reports to the major organization unit on the details of the funds and community projects' progress. The United Way operations and financial management offer the organization an appropriate platform for effective fundraising, donations, and volunteers.
Budgetary resources, structure, and responsibilities
As indicated in the United Way's annual report for the year 2018, the United Way worldwide spent approximately 5% of its funds on administrative, non-operation, and fundraising expenses. The rest 95% of the funds were thus channeled towards the diverse community projects through the local United Way agents. The local organizations have different structures, and each submits an annual report to the main United Way and a report to the community. The breakdown of each United Way branch funds and expenses provides a guide to donors on the organization's expenditure.
The structure of the United Way worldwide provides that the central branch incurs administrative and fundraising expenses only. The local organization agencies remit their expenditure reports to the central organization with details on fundraising, administration, and community projects.
Current fundraising campaigns
The United Way Worldwide is a federated organization that is allowed to collect funds within cooperative workplaces offering drives, major cooperate donations, individual gifts and donations, and other giving efforts from the society. The funds the organization collects are used to support grants within the affiliated non-profits, service organizations, and also service initiatives that are specific to the United Way organization. The United Way mission is to provide support to the community on matters education, economic stability, and health. The organization thus offers grants to community interventions that support any of the three initiatives in communities. Short term grants by the organization may be used for particular projects while annual or multi-year grants support long-term projects. There are also capacity-building grants. There are donors to the United Way that offer to fund for the specific project either locally or internationally. At the same time, the organization facilitates the donation process and directs the donor funds.
The United Way worldwide organization provides the local agencies with guides to the organization's annual campaigns within the communities. The organization also offers the members tips and techniques on the best campaign practices to employ for a successful campaign process. The organization's annual workplace campaigns are concerned about uniting people within their workplaces and engaging them with the United Way's operations within their communities. Apart from helping employees in an organization bond, the campaigns help the business realize how they can improve the lives of the community members.
The work of the United Way is categorized into three categories that is volunteer, policy, and giving (United Way Worldwide, 2020). When an individual chooses to volunteer in a United Way, they get to offer services to the needy community as spotted by the organization. In policy, one chooses to apply policy changes to suit the community they work in on matters education, health, and empowerment. Giving has the most impact on the budget since this entails offering financial support to the identified projects within communities.
Potential challenges to the financial operations
The United Way runs a decentralized system where the managers within the local organizations have powers to make significant decisions based on the project to cover within the local community and the allocation of funds to different expenses. At times, as illustrated by Worthy (2019) this position allows for mismanagement in the organization where local management teams choose to spend more than necessary on administrative and fundraising than expected. The freedom to choose the projects to get associated with may also lead to a loss of identity of the organization through the diversity of the different managerial teams' choices.
United Way budget and fundraising transparency
The United Way worldwide and the local agencies develop annual reports that illustrate administrative, fundraising, and community projects' expenses. According to Monson-Rosen (2020) the Better Business Bureau Wise Giving Alliance recommends the stands for charity accountability that non-profit organizations need to adhere to. The local agencies provide reports to the community that shows the details of their expenditure throughout the year. Another way to get the information on the finances of the local agencies is through the charity navigator website, which gives the details of the organization's financial accounting. The organization is thus transparent and opens up the information to the donors on how their financial aid is channeled to the community.
Ethical considerations
The transparency of the organization to the social challenges some decisions they make concerning their activities and the level of expenditure. At times, the donors’ to a local agency may want to dictate the specific projects that the organization ought to focus on within the organization. On the other side, the management may also have projects set aside to implement in the year. Conflict arises from the decision to either take up the donors' considered projects to please them or follow the organization's plan.
The overall plan of the United Way ensures that the donors and volunteers receive all the relevant information regarding the organization's operations and the communities they support. The organization's policy on transparency dictates the compensation of the full-time employees and the stipends to the volunteers. The dictation by the openness to critics from the general public maintains the organization on check concerning the operations of the organization.
Sustainability
The charity watch notes that the United Way was recently ranked number one charity organization due to the transparency and accountability to the society on the operations of the organization (Is the United Way Relevant in the Internet Age?. 2020). Donors to non-profits are more willing to support organizations that prove their operations to illustrate that the funds get to support the community issues targeted. United Way has developed a positive image amongst the societies and thus got the much-needed funding to pursue the noble tasks in the local communities.
Conclusion
In conclusion, the United Way Worldwide is a non-profit organization that dedicates its resources to globally enhancing the lives of the populations through education, financial empowerment, and health policies. The umbrella organization achieves the mission and vision through the efforts by the local United Ways that reach out to local communities. It is engaged in over 40 countries and territories globally, and it empowers actions and ideas through donations, volunteering, and speaking out for the populations. Leadership at the organization is more of volunteer positions than it is employment. A single board of directors manages the activities in the organization, with each local organization individually governed. Each of the local United Ways has a unique structure that determines the guide to their financial management. The transparency of the organization to the donors and the communities they serve enhances their sustainability. The overall management of the United Way indicates that the organization attains its intended mission and vision, operates ethically, and attracts donors and volunteers to the organization.
References
Is the United Way Relevant in the Internet Age?. (2020). Retrieved 9 August 2020, from https://www.charitywatch.org/charity-donating-articles/is-the-united-way-relevant-in-the-internet-age
Monson-Rosen, M. (2020). United Way grants for US nonprofits: Who's eligible, how to apply - MissionBox. Retrieved 9 August 2020, from https://www.missionbox.com/article/38/united-way-grants-for-us-nonprofits-whos-eligible-how-to-apply
Organizational Background United Way Worldwide. (2020). Retrieved 1st July 2020, from https://www.unitedway.org/pages/organizational-background
United Way Worldwide. (2020). Retrieved 28 June 2020, from https://www.unitedway.org/
Worth, M. J. (2019). Nonprofit Management. [MBS Direct]. Retrieved from https://mbsdirect.vitalsource.com/#/books/9781506396859/
