Sarah Mitchell
United Way is a global network of about 1,800 independent non-profit organizations that raise funds to support local communities. Catholic Charities is one of the major recipients of funds raised by United Way. However, in 1993, Catholic Charities withdrew from United Way, citing differences in values between the two organizations. Catholic Charities, the charitable arm of the Catholic Church, was concerned about insensitive comments made by United Way about the Catholic faith and a reduction in funding for Catholic Charities' programs. Following the withdrawal, Catholic Charities encouraged Catholics to contribute directly to Catholic Charities rather than through United Way.
| Characteristics | Values |
|---|---|
| Catholic Charities' stance on contributing to United Way | Catholic Charities has withdrawn from United Way due to differences in values and beliefs. |
| United Way's stance | United Way has apologized for any offence caused and denied any bias against the Catholic Church. |
| Financial implications | Catholic Charities is facing a shortfall of $100,000 due to the withdrawal, previously receiving $99,738 in contributions from United Way. |
| Reason for Catholic Charities' withdrawal | Catholic Charities cited issues with funding cuts, insensitive comments towards the Catholic faith, and differing priorities as reasons for the split. |
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What You'll Learn
Catholic Charities' withdrawal from United Way
Catholic Charities Withdrawal from United Way
Catholic Charities has been a major recipient of United Way funding. However, in 1993, Catholic Charities withdrew from United Way, citing differences in values and a conflict over funding for pregnancy counselling, adoption, and foster care programs. The Rev. James Russo, Catholic Charities president, suggested that area Catholics contribute directly to Catholic Charities instead of through United Way. This withdrawal left Catholic Charities with a $100,000 funding gap, which they hoped to fill through direct donations.
Reasons for Withdrawal
The immediate cause of Catholic Charities' withdrawal was a funding dispute. United Way announced a significant cut to its contribution to Catholic Charities, citing issues with Catholic Charities' client tracking system, record-keeping, recruitment of black foster families, and duplication of services. Catholic Charities argued that these problems had been resolved and, during this dispute, a United Way document surfaced that included statements that appeared to belittle the Catholic faith. This document caused concern about the values of United Way and their commitment to Catholic Charities' programs.
United Way's Response
United Way apologised for the offensive document and tried to assure Catholic Charities that they held no bias against the Catholic Church. They also attributed the decline in revenues to the increasing number of non-United Way workplace campaigns and the competitive philanthropic environment. United Way emphasised that their work is results-driven and research-based, and that they bring together people and organisations to focus on local challenges.
Impact of Withdrawal
The withdrawal of Catholic Charities from United Way had financial implications for both organisations. Catholic Charities faced a funding gap, while United Way experienced a decline in revenues, with alternative charities gaining more donations. This case also highlighted the challenges faced by United Way in balancing donor choice and maintaining stable funding for their general funds.
Moving Forward
Following the withdrawal, Catholic Charities focused on direct donations from area Catholics to fill their funding gap. Russo acknowledged that some donors might feel uncomfortable cancelling their United Way contributions but suggested earmarking donations for Catholic Charities if they chose to continue supporting United Way. This situation also brought attention to the complex nature of community challenges and the need for collaboration among nonprofit organisations to address these issues effectively.
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Catholic Charities' funding and values
Catholic Charities USA is a network of agencies that aims to help those in need, regardless of their faith. It is rooted in the belief that every person is made in God's image and responds to clients' economic, social, cultural, personal, and spiritual needs. Catholic Charities provides care and support to vulnerable people, including those in poverty, veterans, and the homeless.
In 2010, Catholic Charities had revenues of $4.7 billion, with $2.9 billion coming from the US government. The remainder came from donations from diocesan churches, in-kind contributions, investments, program fees, and community donations. Catholic Charities also receives funding through fundraising events, such as the annual fundraising gala held by the Catholic Charities of the Archdiocese of Washington, which raised $2.4 million in 2017.
Catholic Charities agencies are among the largest providers of safe, decent, and affordable housing in the nation, with more than 38,000 permanent units. They also provide healthy food options through food banks, pantries, schools, daycare centers, and community farms, among other initiatives.
Catholic Charities has endorsed policies such as the DREAM Act and has prioritized immigrant affairs, leading to a federal funding freeze during the Trump administration. It has also faced legal issues regarding its refusal to provide services to same-sex couples, citing religious principles.
United Way, on the other hand, is an independent organization that raises funds through workplace campaigns, where employers solicit contributions. United Way then distributes these funds to various nonprofit agencies, including Catholic Charities, after deducting an administrative fee. United Way allows donors to specify which nonprofits should receive their funds or choose a focus area, such as helping children or the elderly.
United Way brings communities together to tackle challenges and improve access to education, health services, and job opportunities. It also helps communities prepare for and respond to crises and disasters. United Way has a high charity rating, scoring 93% and earning a Four-Star rating for its accountability, financial health, leadership, and adaptability.
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United Way's revenues decline
United Way Worldwide is the umbrella organization for more than 1,100 independent units that primarily use workplace paycheck contributions to address local needs. United Way organizations raise funds primarily via workplace campaigns, where employers may solicit contributions on United Way's behalf payable through automatic payroll deductions.
United Way's share of US charitable contributions has declined over the years due to the competitive philanthropic environment. In 1988, there were 450,000 nonprofits in the US, and United Way accounted for 3.16% of charitable contributions. By 1999, the number of nonprofits had increased to 715,000, and United Way's share of donations had decreased to 1.98%.
The trend of alternative funds has continued, with only 25% of companies conducting a traditional United Way-only campaign, according to a 2009 survey. United Way has also faced challenges due to donor-choice policies, which allow donors to specify which nonprofits should receive their funds. While this policy provides donors with more choice and control over their donations, it has contributed to a decline in donations to United Way's general funds.
In addition, United Way has experienced a decline in public support in recent years. Despite an overall increase in total revenue, public support for United Way Worldwide dropped for three consecutive years, from $3.708 billion in 2015 to $3.539 billion in 2017. This decline in public support has been recognized by United Way affiliates, who have attributed it to various factors such as competing donation drives, changes in donor preferences, and the organization's traditional workplace giving model.
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United Way's donor-choice policies
United Way is an international network of over 1,800 local nonprofit fundraising affiliates. It raises funds primarily through workplace campaigns, where employers may solicit contributions payable through automatic payroll deductions. After deducting an administrative fee, the funds are distributed to various nonprofit agencies within the communities.
United Way has traditionally resisted donation designations, and the rollout of donor-choice policies has been slow. However, almost all United Ways now allow donors to specify which nonprofits should receive their funds. Some allow donors to direct their gifts to any nonprofit, either inside or outside of United Way's preferred charity list, while others only permit donations to charities within their region or country.
Some United Ways also offer donors the option to choose a focus area or social problem they want to support, such as helping children or the elderly, and their gift is then allocated to relevant charities within the United Way network.
The implementation of donor-choice policies has had a mixed impact on United Way. On the one hand, it has led to a decline in donations to their general funds, as donors spread their giving across multiple agencies. On the other hand, it has allowed United Way to expand its reach and impact by partnering with a broader range of nonprofits and addressing a wider array of social issues.
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United Way's local community impact
United Way Worldwide is a charitable organization that works to bring communities together to tackle challenges and create lasting change. The organization has a strong focus on local community impact and empowers individuals to make a difference in their own communities.
United Way raises funds through workplace campaigns, where employers solicit contributions on their behalf, and distributes these funds to various nonprofit agencies within those communities. They also allow donors to specify which nonprofits should receive their funds, or they can choose a focus area such as helping children or the elderly. United Way's local impact is felt through their support of various nonprofit organizations, including Catholic Charities, Girl Scouts, Boy Scouts, and The Salvation Army.
One of United Way's key strategies is to strengthen local resilience and advance health, youth opportunity, and financial security. They work to improve access to nutritious food and quality health education, particularly in underserved communities and among women of colour. They also promote health insurance enrollment among BIPOC communities and aim to decrease infant mortality rates in these communities.
United Way also creates pathways for young people to reach their goals, from early childhood education to college and career success. They connect people to education, tools, and job training, so they can build a stronger future for themselves and their children. Additionally, United Way helps communities prepare for, prevent, and respond to challenges, providing crisis support, disaster relief, and environmental protection.
United Way's impact is felt worldwide, with local United Ways run independently and incorporated separately as 501(c)(3) organizations. Each affiliate is led by local staff and volunteers and has its own board of directors, independent of United Way Worldwide. This allows for a more targeted impact on the specific needs of each community. United Way has been working for over 135 years to improve lives and advance the common good.
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Frequently asked questions
No, Catholic Charities does not contribute to United Way. Catholic Charities has left United Way due to differing values and beliefs.
United Way is a local movement of volunteers, advocates, partners, and donors committed to advancing the common good by mobilizing communities around education, financial stability, and health.
Catholic Charities is a charitable arm of the Catholic Church.
Catholic Charities left United Way due to a series of events that led them to believe their values were too different. One of the main issues was funding for Catholic Charities' pregnancy counselling, adoption, and foster care programs. United Way cut its contribution to these programs, citing problems with Catholic Charities' operations.
No, Catholic Charities does not receive direct funding from United Way. However, Catholic Charities may still receive donations from individuals who contribute to United Way and earmark their money specifically for Catholic Charities.
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