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Hard times hit OC United Way
November 24th, 2009, 6:00 am · 21 Comments · posted by Lindsey Ambrose
The Orange County United Way - a lifeline for the needy, and one of the county’s larger non-profits - is seeing donations dwindle as demands for services increase.
Revenues were down 13 percent last year, while requests for food and counseling services nearly doubled.
Despite the drop in revenue, United Way still managed to distribute the same amount of grant dollars to organizations that help the needy as it did last year: $18.3 million.
The economic difficulties have sent families in Orange County rummaging around for basic necessities, seeking help in ways the community has never experienced before, said United Way officials.
DEMAND UP
Food requests increased by 98 percent from July 2008 to July 2009. Requests for rental assistance rose 42 percent, and requests for counseling services were up 84 percent, according to the 2-1-1 Orange County referral hotline used by United Way.
The Southwest Community Center, a partner that provides food, shelter, clothes, and transportation and rental assistance to those in need, has seen a difference in the clientele seeking services.
“It’s now those that have never been without and never lost jobs,” said Connie Jones, the director of the program. “It’s the middle class now and it’s tough for them to come ask for assistance. Some of our clients used to be donors and now they have to walk in our doors and ask for help.”
REVENUE DOWN
And while the need is growing, the United Way’s revenues are not. In the chart below you can find a breakdown of revenues, expenses and net assets over the last three years. The Orange County United Way has seen revenues drop 21 percent (from $29.3 million in 2006 to $23.1 million in 2008).
STILL EFFICIENT
- 82 percent of spending went to programs (nonprofit watchdog Charity Navigator looks for about 75 percent spending here). The organization funds over 80 health and human care programs throughout Orange County.
- 9 percent was spent on management (CN says this number shouldn’t exceed 10 percent). It cut overhead costs by 14 percent this year.
- and 8 percent for fundraising (the CN says no more than 10 percent).
Here you can see where the spending goes:
MAKING ENDS MEET
United Way tells us it has gone to great lengths to ensure that, despite tough times in the neighborhood, it is providing essential services such as food, shelter and medical care to those in need.
The company had 58 employees at the beginning of the 2007-2008 campaign year; it currently has 36. In addition to staff cuts, officials told us that the budgets within each department were also cut.
“We needed to do the responsible thing,” said the president and CEO Maria Chavez Wilcox, who has seen her compensation drop (see details here). ”We had to cut ourselves first, to ensure that as much money as possible was going to people in the community.”
Earlier this year we reported that it had to use money from its emergency fund, which is usually set aside for natural disasters, in order to help fund its Bridge the Gap Campaign. (And this seems to have proved beneficial- at least until disaster strikes; the operation ultimately secured $300,000 that was released this month to 30 non-profit partners that provided food, shelter, medical care and job training.)
Desperate times have also required that the United Way shift from a three year funding cycle to a one year in order to assist in the most pressing issues of community members.
The human services end of philanthropy is the least glamorous. In 2007, a Register an analysis found that Orange County’s millionaires and billionaires pumped more than a half-billion dollars of 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.
“We need individuals to open their hearts and their pocketbooks to the United Way,” said Wilcox. “What we need is faith, heart and resources and for people to consider supporting the effort that haven’t before and continued generosity from those that have.”
More on nonprofits:
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I recall many years ago when United Way got caught up in a big scandal when their highly paid execs were skimming alot of money off donations for their personal coffers.
Teri, you should post the salaries of the execs who run this so-called ‘non profit agency’.
Red Cross has been caught in similar scandals.
That is why when I feel charitable I NEVER give my money to these organizations because only a small portion ends up going to the needy.
I ask around and find a needy individual or family in bad shape due to unfortunate circumstances (not drug or alcohol related) and do a hand to hand transaction with them. That way I KNOW where my money is going. I would NEVER throw it into a black hole by donating to these large bureaucratic organzations and expecting them to spend it wisely.
I have been the recipient of some of the programs that they fund, and my family and I are thankful. I never thought that I would ever look to get help from another.
I heard many stories like the other posts on this site. I decided to volunteer and be on a community impact council to see where the money goes and how they impact peoples live. I volunteered for over a year and found the people that work at OCUW dedicated to supporting the community. Some where students, single mothers, documentary filmakers, people looking to server and others looking a steady paycheck..
Never did I feel unappreciated or got the impression even the senior managers were in it for a buck. They at times were stressed by the lack of contributions and hoping to make the right decisions to impact the most amount of people.
There are bad apples everywhere but don’t throw away the bushel. Good people give their time, energy and life to helping others. Please don’t diminish their contributions by generalizing they are all bad. So if you hear about bad things happening choose to get to involved and see for yourself, otherwise shut up and sit on the sidelines.
It sounds to me like you know more than you should about this organization. Hmm could there have been any ties? In any matter, dont you think you missed out the part where they actually help people? Apparently you are not looking at the big picture. By the way, I understood your message the first time; no need for further clarification. It is clear that you are closed minded and upset with the organization. I am sorry that things didnt work in your favor, whether you like it or not the money given does go to great organizations profitting people. By the way I do not mean to insult your comments; I am simply stating the facts.
The United Way is a SCAM charity.
Might as well give your $ to the Taliban.
We saw where the charitable contributions went after Katrina, right??
Handouts were used to get lapdances at strip clubs.
The same people were getting in line four or five times using different names and collecting $2000 a shot. hah.
That’s why I would NEVER give my money to these organizations.
When you factor in the administrative costs (public and hidden) to include salaries - AND the waste involved, less than half of your money goes to those who actually need it.
Find a family in need and give them your charity hand to hand. That way YOU KNOW where 100% of your money is going!
Not sure where you got the “less than half of your money goes to those who actually need it.” Though, that claim is not too far off. CharityNavigator ranks the majority of United Way branches are being relatively crappy. Personally, I donate to AmeriCares.
http://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=4649
The link you provided shows that over 82% of their OC United Way money goes into programs, only 17+% goes to administration and fundraising.
This charity’s overall rating reflects some of the very problems stated in the article: the difficulty in raising funds and increasing revenues. When revenues decline, so do program expenditures, further lowering the CN score.
17% is a lot compared to other decent charities. I’ll agree that their rating is low due to revenue decline. I think we should remove the overpaid CEO and replace her with somebody who can better run the organization.
I think the waste and overhead is MUCH more than 17%. That’s spin spun by United Way, right??? What do you expect them to say.
But even if it was only 17% why should I donate to a organization to help the needy when 17% of my donation goes to those fat exec salaries??? I can give a needy person(s) a hand to hand donation and I am SURE that 100% of my donation goes to HIM or HER or THEM who need it.
It’s really a no-brainer, isn’t it???
Here’s another reason not to give, Maria Chavez Wilcox
“We need individuals to open their hearts and their pocketbooks to the United Way,” said Wilcox. “What we need is faith, heart and resources and for people to consider supporting the effort that haven’t before and continued generosity from those that have……………………..
No thanks, I’ll give to something my self, bypassing your overhead and skimming.
Just a few years back folks were boasting “look at everything I have - look at what I can spend!” And now, it’s “look at how broke I am because I didn’t save . . . YOU all save me instead!” I am deaf to their cries.
I hope the Maria Wilcox will be ok, her salary is only 250k a year according to tax records. A pay cut, lol, Hang in there Maria!!!
HAH!
And Maria is just the CEO of the OC chapter. - $250k - yeah???
Think about what the national United Way trough feeders get???
That’s why I would NEVER give them thin dime.
I hope they go bankrupt!
ocobserver: The sad fact about the scandal is that because of one man’s bad deed (who was not in Orange County) donations to United Way were cut in half. That translates to help being provided to only half of the families and individuals that needed help at that time.
Orange County United Way is governed by a local board of directors that are business and community leaders in our community. They have never had an act of impropriety. Their financials are available to the public, just like any non-profit and they are a quality organization.
You should do your research on any charity you want to support. However, if you don’t have the time to research and ensure a charity is a quality organization, you can trust that Orange County United Way is helping those most in need in Orange County.
Why should I give to ANY charity???
Better for me to give DIRECTLY to the poor who are deserving so I know where my money is going. 100% of it!!! Why should I pay Maria’s fat salary??? It’s a big scam.
we are all suffering with the high cost of water bills and healthcare costs and food and rent and other bills and no one cares aboutus i am a single mom of four kids and get no child support for two of my kids the whole government system sucks including arnold the terminater doesnt belong in office neither does obama. go after the fathers to provide for r kids. not make us pay for there mistakes. enforce child support and make them pay insurance and for the medicine and co pays when we have to take r kids to the doctor now!!!!!!!!!!
While, hardship on ANY legitimate charitable organization is
lamentable, without question, the great San Francisco Sex-Change
Scandal had a PERMANENTLY adverse effect upon the United
Way. GOT leadership?
Google ” United Way Scandals ” and you’ll see a long history of pay and perk scandals all over the U.S. Those local boardmembers thought everything was hunky-dory, too, until the press uncovered the fact that they don’t really pay attention or ask tough questions of management. One, Charlotte, just recently approved a multi million pension for the CEO without realizing it ( or so they said ).
This OCUW hasn’t raised a nickle more than it did 20 years ago, despite the community growth. That’s a sign people aren’t buying whatever it is they’re selling.
What a joke…the organization lays-off good people who get paid way below self-sufficient levels and the CEO gets a 2% cut. This org could do so much more work in the community if they cut the CEO, HR Director and other senior leadership who make way too much and do nothing. Working in the trenches of nonprofit work, I never see the CEO of UW out DOING the work…worthless.
You could also donate to the CIA’s “MK-ULTRA” (or now know as MK-PATRIOT) program and let them deal with the poor chaps. They have enlightening ways of giving people new directions, such as myself. You can also meet some of the agents (like I did) in Teen Challenge posing as students right next door to the Masonic Temple where they monitor the students (hurting people) progress daily in Riverside. Then when you graduate you can be stalked and harassed for the rest of your life like me! Sound fun huh, yeah, even funny. Government programs are made to help people, trust me. I hope your reading jerks……