- NEWS
- SPORTS
- Reading between the hash marks: Rick Neuheisel 7 minutes ago
- Ducks go to shootout to douse Flames
- UCLA's 10 most notable wins over USC 3 hours & 36 minutes ago
- Flames' Iginla serves as inspiration
- BUSINESS
- ENTERTAINMENT
- LIFE
- TRAVEL
- OPINION
Hard times hit OC United Way, just as more people need help
November 17th, 2008, 6:30 am · 10 Comments · posted by Teri Sforza, Register staff writer
(Read Part 2: United Way responds by cutting fundraising and operations 15 percent)
The Orange County United Way - a lifeline for the needy, and one of the county’s larger non-profits - is falling on some hard times of its own.
The United Way’s revenue dove more than 9 percent between 2006 and 2007, while spending fell nearly 11 percent. That’s bad news at a time when the economy is tanking and more people than ever need help making ends meet.
A review of its tax returns shows that:
- The United Way OC spent more than it took in for two of the past three years.
- It dipped into reserves to cover the shortfalls, shrinking its net assets 12 percent since 2005 (to $11.3 million from $12.8 million).
The story is told in the chart below. Note how the purple line - spending - is larger than the blue line - revenue - for 2006 and 2007.
And this chart shows the drop in net assets - though they’re still healthy, amounting to about 40 percent of the United Way’s annual spending.
The financial downturn has obviously impacted its mission. Over the three years:
- Spending on program services - actually helping people who need help - dropped from $26 million to $22.8 million (more than 12 percent).
- Spending on management dropped $26,800 (1 percent)
- Spending on fundraising dropped $7,114 (.3 percent).
We note that spending on management and fundraising didn’t drop nearly as much as spending on programs.
Still, the United Way OC continues to plow an efficient 84 percent of its money into programs; while administrative expenses took 7.4 percent and fundraising toook 8.2 percent. It earned three of four possible stars from watchdog Charity Navigator.
The human services end of philanthropy is the least glamorous. Last year, The Watchdog did an analysis and found that Orange County’s millionaires and billionaires pumped more than a half-billion dollars in high-profile gifts into charitable causes over two years - but that none of the megagifts (for $1 million or more) directly addressed the immediate needs of the poor, such as food or shelter.
And that was at a time when the economy was booming.
So if there are any Orange County millionaires and billionaires reading this, we hope they’ll take a minute to think about the less fortunate. As we start scouting for turkeys and holiday gifts, we’ll certainly be thinking about them, too.
United Way officials explain the situation further here.
More Watchdog:
- After priest scandal, Catholic Diocese’s financial rebound is heavenly
- Hoag, CHOC hospital execs earn more than $1 million each
- OC charity for burn victims burns donors
- OC Scouts leader’s pay rose while revenue fell
- God’s quid pro quo?
- Earthly kingdom: Trinity’s $167 million in real estate
- Crusading for ‘Judeo-Christian values’ doesn’t come cheap
- OC Scouts leader’s pay rose while revenue fell
10 Comments
Leave a Reply
-
ADVERTISEMENT
-
Follow this blog:
-
More from OC Watchdog reports-
ADVERTISEMENT
You can follow this blog: on 
Time for CEO of United Way to give up perks and huge salary!
United Gay?
I stopped my monthly payroll contributions to them when they stopped their contributions to the Boy Scouts because the scouts wouldn’t appoint homosexual scout leaders.
Sorry, I gotta disagree with “efficient 84 percent .” I realize that as organizations get bigger, it requires more staff to maintain. Even Red Cross is 94% and Americares is 98% efficient. This is the reason why I donate to Americares and not OC United Way, even though I live right in the middle of OC. And as ex ladera said, let’s cut the pay for the CEO; 1% of the entire organization’s revenue to pay the CEO is a lot of money.
The people that use to give need help now. The pull back is not surprising. I donate to the U.W. through payroll deduction.
LOL!!!
United way is such a crooked organization!
I remember working a party for the OC chapter
It was at the Ritz Carton
They had extravagant diners, dancing, a live band, and large multiage slide show
Plus $400 a night suites for those at the top
It cost the United Way 2.5 million!
What a joke!
They always spend 95% on the money they take in on party’s salaries and perks
Anyone who gives to United Way is a fool
Its better to give directly to those that need the money!
This is why i NEVER give to this crooked organization! I can,t believe their still around! When is someone gonna speak up and close their doors????
The United Way gives to may different organizations on our community. They do the research and make sure that the orginization are accomplishing what the are setting out to do. None of have the time to do that sort of research. So I always give my money throught the United Way and I know that my donatation is staying in our communtiy and going to programs that are doing good!
Hmmm
What about the $1.4M in compensation to their five (5) highest paid Executives. Or the quarter of a million being paid both to the current Orange County Executive and the former Director?
Why is this author not pointing all the facts as she did so well against the Boy Scouts just a couple months ago with over 10 articles in just one week? (maybe they are coming…)
However, as said many organizations have been hit by the recession. There are lots of organizations and people wishing can “earmark” their donations through the United Way to Girl Scouts or just give to them directly.
This organization would never survive a thorough independent investigation from the outside.
These United Way CEOs are ripping off huge salaries. Yet OC United Way raises no more than it did 15 + years ago. A well trained monkey could do that with the economic growth of OC over the decades. And United Way CEOs are being busted recently for excessive compensation all over the country. Charlotte and Atlanta most recently.
Check their accounting on the claim they give 84 cents to agencies. These United Ways have “funny” accounting procedures designed to bring in the suckers.
Maybe the skillionaires are just too well informed to waste their donations on this type of “Charity”.
Thre rae many levels of “United Ways”. The one that i hear the most hostility about is United Way of America. The United Ways in your local area are independent of United Way of America. Your local United Ways pay a fee to UW of America.
It takes more than monkeys to raise money. Its planning, lots of hours, materials, education and putting yourself out there every day.
I give, payroll deduction. Its easy. I dont designate to a specific charity as I give to UW so that my money can be spread out over their partner agencies.
Its sad about the Boy/Girl Scouts. Most UW’s have a criteria that must be met (an application process) to have funds disbursed to the agencies. Every year a funding process takes place. Its not as easy as one would think to disburse funds.
The salaries of UW of America could be construed as high. Your local UW’s principal executives’ salaries are published, look it up. While it may be more that the $8 an hour clerk is making, it is in line with your area CEO’s.
Education is an important factor when deciding to donate or to mouth off. Most of these comments are made from the uneducated in the world of donating and the hard work that is put into fund raising.
Next time you get a postcard in the mail asking for a donation; before you throw it away — realize the hours of work it took for that postcard to be in your hands (creation, acquiring addresses, typing, labeling, sorting, mailing).
Bob Hope once said that “if you dont have charity in your heart, then you have the worse heart trouble of all”.