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   How can United Way cut funding from a good organization after a decades-long partnership?
2. The nonprofit agency I designate my donation to has had their funding cut. Why should I continue to give to United Way?
3. How did United Way pick which charities to fund? How do I know the process was fair?
4. What about agencies that lose funding and compete with United Way as a result? Isn’t it better to fund an agency than to compete with them for donations?
5. How do you know the new funding model and focus will work?
6. Is the United Way cutting funding because it’s losing money?
7. What did switching out agencies really accomplish in the end?

1. How can United Way cut funding from a good organization after a decades-long partnership?

United Way’s funding decisions are a reflection of the transformation we have undergone in the last three years to sharpen our focus to three key areas: Educational Preparedness, Financial Stability, and Basic Needs.
         
The decision to reduce or eliminate funding for some agencies was very difficult. We greatly value the relationships United Way has with its partners. Our decisions are in no way a value judgment of any organization that has participated in the grant application process. We have taken great care to ensure the grant-funding application and review process was fair and equitable. For the first time in decades we opened the door to new agencies.  We want every organization involved in this process to achieve long-term sustainability and success in their work on behalf of individuals and families in Southeast Michigan. Our funding has moved to a three-year cycle and the doors will again be open for agencies to apply for grant funding in 2011.

2. The nonprofit agency I designate my donation to has had their funding cut. Why should I continue to give to United Way?

Regardless of the outcome of grant proposals, partner agencies that remain in good standing will still receive donor designations.

3. How did United Way pick which charities to fund? How do I know the process was fair?

We engaged in an open and equitable review process to select the best partners to help create lasting impact in our three focus areas -- Educational Preparedness, Financial Stability, and Basic Needs. One hundred and thirty volunteers on 23 review teams scored proposals based on merits. 361 proposals were submitted by 191 organizations, and 10-15 hours were spent reviewing each proposal. Proposals were prioritized with consideration for limited resources, while concentrating on filling service gaps in the region.

4. What about agencies that lose funding and compete with United Way as a result? Isn’t it better to fund an agency than to compete with them for donations?

If competition in the nonprofit sector can help achieve our goal of making this region a better place to live by driving innovation and increased efficiency as it does in the business sector, then we welcome it.

5. How do you know the new funding model and focus will work?

We formed the Agenda for Change based on established best practices, and after three years of diligent research and listening to the community through surveys, interviews and focus groups. We are taking bold steps by changing the way we do business in order to impact the root causes of the most critical issues our region faces. Additionally, we have created a comprehensive scorecard to track our progress and we will be reporting on our results in an open, transparent fashion.

6. Is the United Way cutting funding because it’s losing money?

United Way of America recently announced the shift from fundraising to an impact model. United Ways across the country, regardless of their financial outlook or economic conditions, are moving in the same direction. Changes to our funding model, along with the selection of agency partners were led by our shift in purpose and the realignment of our organizational structure and resources to the Agenda for Change. The total request for funding from all 361 proposals combined exceeded $92 million. With $59 million raised during our 2007 annual fund drive, we could not possibly fund all the proposals received. And while we now have to do more with less, limited resources are not the underlying reason for changes to our funding model.

7. What did switching out agencies really accomplish in the end?

Changes in agency funding were part of a larger strategy that included not only funding agency partners, but also funding key programs and initiatives, while bringing together community partners and resources to impact issues.