United Way Worldwide Analysis And Proposal For Improvement
South Texas College
Joe Cruz, Management Theory
May 4, 2022
Non-profit business ideas originate from a passion for improving people’s lives at the community, local, state, and national levels. Even though a non-profit organization does operate in the typical fiduciary way to the shareholders, the directors must make strategic plans which would identify income-generating means. Flaws exist in the management procedures, requiring company analysis to reveal the best options to restore funds growth for charity works.
The United Way Worldwide is a non-profit organization that fosters better lives through the caring power of the communities worldwide. It has a vast network of fundraising affiliates, the largest charity organization. This paper will consider the organizational analysis to identify performance and flaws to apply a sound strategic plan. The charity organization is by far the largest firm by donation; however, the pandemic affected fund sources in addition to corruption allegations which necessitate company analysis and solution proposal
The organization focuses on human services through volunteerism and philanthropic activities, which its affiliate communities help accomplish. Typically, most charity organizations rely on donors and well-wishers for funds and other resources (UWW, 2020). This scenario dictates that the directors should be trustworthy in the long run to ensure accountability and integrity while handling charity funds. For the longest time, United Way Worldwide has been more than just a thought leader in the non-profit space, which saw the rise of financial assistance from various communities (UWW, 2020). This way, the organizations stand as the largest privately funded charity group that disseminates resources, tools, and knowledge to improve their lives.
The United Way Worldwide has enjoyed some of the most prolific years of financial history, enabling it to extend human services such as education, health, and finance. In 2020, the organization raised over $5.6 billion for long-term community-led and community-based solutions globally (UWW, 2020). This contribution made the non-profit entity the largest privately funded charity group in America in the same year. Overall, 78% of the contributions emerged from unrestricted and temporarily-restricted donations from the global community (UWW, 2020). This contribution represents the largest fund generator for the organizations as it serves the community’s social problems.
Moreover, the organization intensified its fundraising campaign through other diverse means. Over 13% occurred from the membership fee that communities in the entity contribute as benefits of membership to the organization (UWW, 2020). The ability of the firm to step up for the target communities and citizens makes it enjoy a vast community membership that offers such significant fees. Additionally, the non-profit firm generates other revenues of up to 8% of the total revenues from selling promotional materials (UWW, 2020). This category of funds includes investments, non-professional service fees, conferences, and rent which make up the three significant sources of funds for the organization.
The charity groups enjoy one of the vast networks of affiliate communities globally that makes execution of human services accessible and effective globally. The United Way enjoys a partnership base of 45,000 members who harmonize efforts to serve clients in over 40 countries and territories (UWW, 2020). Philanthropic works require such resources, which eventually allows the firm to reach a large global population. Besides, the firm has over 6.8 million donors and 1.5 million volunteers who undertake to empower people through their contributions of money and kindness (UWW, 2020). No other charity organization has such a support network that aims at evolving people’s lives through educational, financial, and health services.
Currently, United Way offers almost all the revenues generated to the community services as stated in the mission statement. For instance, the firm provided over 90% of its revenues developed in 2020, excluding the expenses incurred to manage such funds (UWW, 2020). Such funds represent the charity group’s many commitments to the global community. Besides, the success in fundraising indicates the success of the organizational strategic plan; however, the global social problem is escalating the ability to mobilize funds from the community (UWW, 2020). This notion implies that as social issues continue to increase, most organizations are not aligning efforts with such changes, leaving them under tight budgets.
The emergence of the pandemic saw the charity stretch if financial abilities towards elevating the conditions which the virus left among vulnerable countries. Education being one of the Unites Way’s endeavors, the firm faced many difficulties trying to establish digital education to support the system under the restrictive measures of containing the pandemic (UWW, 2020). Much of the firm’s funds entered the campaign, which elicited financial shortages and the need to restructure fundraising strategies. Cardinal Health, an integrated health service, cost the firm much in the effort to respond to the pandemic globally (UWW, 2020). This way, the firm fails to step up fundraising efforts to stay on par with the growing social problems.
Illegal dealings have taken a heavy toll on financial operations in United Way, making it difficult to raise funds for global projects. Under the tenure of president and CEO Brian Gallagher, the organization experienced rampant discrimination against employees who reported financial mismanagement to the equal employment opportunity commission (Candid, 2021). The leadership flows by personal interests leading to money embezzlement. Such allegations saw the replacement of the CEO by Angela F Williams, who have witnessed over two hundred local United Way chapter fail to pay their dues to the organization (Candid, 2021). This scenario necessitates a sound strategy that would act as a game changer for the organization financial and human resource management, which has been experiencing difficulties following the Covid pandemic.
Change of Business Model
Asking money from people and other organizations is the most excellent job of United Way Worldwide that keeps all operations running. Before the discrimination and corruption allegations, the charity firm received funds from all its global chapters without unnecessary excuses (Gallagher, 2018). Currently, the corruption allegation is eroding the firm’s relationship with its global communities and partners, which necessitates the need to create direct relationships. The charity group should change from business to business model to a B2B2C model which would allow optimum interaction and rapport with donors (Gallagher, 2018). This model will increase the direct collaboration with funders who will eventually become part of the mission. This model aims to restore the financial trend which prevailed before the issue.
Since the world is recovering from the pandemic effects, the new model would help the firm restore its previous membership number and the partnership it lost after the allegations.
Shifting the business model would forecast the restoration of the last financial achievement that the firm had achieved in the previous decade. By recovering from the pandemic, the organization would reach 8.1 million donors, which would make it the largest privately funded organization globally (UWW, 2020). This level of donation is the dream of every charity group struggling in the aftermath of the pandemic. The number of funds raised might be inversely proportional due to increased expenses of protecting frontline workers during the Covid period, which saw huge debts and deficits in the books of accounts (UWW, 2020). This notion implies that the form could experience a slight decline in revenue in the first year of the three-year prediction.
Communication and Openness to Retain Employees
Besides, the pandemic conditions raised awareness for volunteerism globally to restore social, economic, and political situations. Corruptions and discrimination cases demoralized employees in the charity form who even volunteered to pay salary deductions in the wake of the Covid 19 pandemic (UWW, 2020). Most employees quit charity work and desired to join other organizations where the management was willing to consider their voice. Eliminating bureaucracy and closed-loop communication between employees and the administration would help the firm increase the employee retention rate to roll out the Cardinal Health program in the coming years (Gallagher, 2018). The company relies on employees who are willing to volunteer much of their time and resources to better the organization.
Evolving to Digital
The pandemic requires virtualizing all services for easy access and time-saving. Creating websites through search engine optimization would be imperative in posing new articles and projects about the mission and vision (Gallagher, 2018). This way, it would be easy to attract a large donor audience. After the allegations, the organizations lost their customer base, especially promotional sales that generated significant revenue (Gallagher, 2018). Therefore, optimizing internet engines with leading tags and links that direct prospective donors to the website would help restore public attention, which helps restore financial contributions. Besides, the organization requires intensifying its education efforts to equip college students with digital skills that will help during pandemic conditions with a projection that would match Microsoft Inc. (Gallagher, 2018). This way, it will be possible to restore the financial situation through a digital project which would compel donors to be part of the mission.
The United Way Worldwide boasts of being the largest privately-funded organization that focuses on human service on a charity basis. Before the incident, the board had complete control of the organization, which boasted year in year revenue growth from donors, promotional sales, and membership fees. However, the Covid pandemic elicited the need to step up fundraising efforts in addition to the corruption and discrimination allegations that eroded financial sources. The internal issue changed donors’ attitudes, which necessitated adopting a new business model that would restore relationships. Besides, digitalization is crucial during the pandemic, attracting many donors to empower youths. Otherwise, employees require communication as they would help such organizations cut costs through volunteering in hard times.
Candid. (2021, February 2). United way worldwide CEO facing uncertain future. Philanthropy News Digest (PND). https://philanthropynewsdigest.org/news/united-way-worldwide-ceo-facing-uncertain-future
Gallagher B. (2018, September 1). United way’s CEO on completely changing the way the charity raises money. Harvard Business Review. https://hbr.org/2018/09/united-ways-ceo-on-shifting-a-century-old-business-model
Steiss, A. W. (2019). Strategic management for public and nonprofit organizations. https://doi.org/10.4324/9781482275865
United Way Worldwide United Way Worldwide 2020 Annual Report. (2020). Cloud Object Storage – Amazon S3 – Amazon Web Services. https://s3.amazonaws.com/uww.assets/site/annual_report/2020/2020_Annual_Report_FINAL.pdf
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