United Way System Discussion

Michigan Association of United Ways 2 What is MAUW? Statewide association representing the 57 United Way organizations in the state Our Mission: The Michigan Association of United Ways (MAUW) is a partner in developing powerful responses to current and emerging issues in local communities. The State Association provides leadership in policy influence and capacity building to affect positive change in local communities. Key programs: 2-1-1, MBA, MASP, AmeriCorp

Michigan Association of United Ways 3

4 Why we exist and the value we add Mission To improve lives by mobilizing the caring power of communities around the world to advance the common good. Value Proposition We galvanize and connect a diverse set of individuals and institutions, and mobilize resources, to create long-term change.

5 The traditional United Way business model no longer meets community needs Two indicators 1.Problems in our communities are getting worse 2.Contributions to United Way have not kept pace with philanthropy in general

6 Why are problems getting worse? Our communities are changing: Aging population Widening wealth and income gap More complex community needs Many more agencies and coalitions working separately on related issues Less government support available Failure to address underlying issues

7 Why are contributions to United Way falling? More nonprofits competing –generally, and in the workplace “Reach” of workplace campaign is shrinking With shift in mix towards service businesses, more people working in multiple, smaller businesses and locations More global companies that lack ties to local communities Technology makes it easier to give without us Donor expectations are shifting: want more control, more accountability for visible results Traditional role doesn’t distinguish UW in donors’ minds “One campaign for all” and middle-man role no longer as valued

8 Our environment We face internal and external challenges We’re losing donors Companies moving to “strategic philanthropy” approach Overreliance on old economy business There is a large trust gap across age groups We have low public trust compared to other large nonprofits But we also have real assets Strong brand Large footprint We can and do bring people together Millions of supporters

9 What does this all mean? We are going to have to work very differently, building on our assets We have to do this with our communities Figure out what makes a difference, bring folks together to get it done, and raise money to do it We’ve always been an intermediary and we still are, but we have to add value

10  to  Mobilizing communities that  DIRECT IMPACT COMMUNITY IMPACT people, time, talent, relationships, expertise, technology, money, etc. financial resources of businesses and employees of program clients of community populations support services for individuals and families  improve lives New Model for Improving Lives Emphasizes a Community-level Approach

11 What will it take to become a United Way mobilizing for community impact? A deeper focus on certain elements of the Standards of Excellence If we wish to be effective, we will need to: Executing on the United Way Business Model Operate as an integrated and aligned organization Have the right skills, competencies & leadership Create & deepen relationships with individuals & institutions Measure, evaluate & communicate results Engage and align with the community Develop strategies and focus actions Mobilize resources Align and execute on plans and strategies

12 How business practices support each other for success As we engage and align with the community: We identify natural leaders with whom to build deeper relationships We gain info that will strengthen our community impact strategies We build interest and commitment in supporting community causes through giving, advocating and volunteering on behalf of issues We therefore have people and grassroots organizations that will be eager to support implementation We communicate back to the community about what we have heard and learned

13 How we execute against the Business Model Work on things that matter to people Connect with more people - get them involved Get agreement on strategies Give everyone a chance to support the plan Tell people about the results

14 Some implications for our work New skills – change management leadership, grassroots organizing, issues management, strategic communications, advocacy, relationship management, social media New content expertise – education, income, and health Executing according to value proposition – conveners, “mobilizers”, “aligners” of efforts towards long-term community change Diversification of revenue streams – complex grants (federal, state, and private), individual gifts, etc. Technology – new platforms to enable individual giving, advocacy, and volunteering; new relationship management tools; back office/financial systems for a new era Full organizational alignment – functional teams must work seamlessly Network alignment – we must operate as a truly interdependent network that coordinates appropriately

15 Brand positioning and promise Execution to what end? Advancing the common good by creating opportunities for a good life for all Pillars or Focus areas Target issues Intended results Indicators Education Helping children and youth achieve their potential Income Promoting financial stability and independence Health Improving people’s health e.g., academic achievement e.g., Young people graduate from high school e.g., Public on-time high school graduation rate* *As measured by the averaged freshman graduation rate

16 How can we deliver with scarce resources? Be efficient Really leverage volunteer support Collaborate and share deeply with other United Ways built on a strong foundation of trust Use grant-funded positions Engage the community Have the right investment opportunities Built on a case of urgency Relentlessly focus on improving lives in the community

17 It’s all about managing risk Risks of changing –Stakeholders may not understand the new approach –Possible short-term loss of donors and supporters –Dissatisfaction of currently funded organizations –Loss of staff Risks of not changing –UW not as effective in addressing priority community issues and changing lives –UW becomes less relevant to the community –Continuous loss of funds and donors

Michigan Association of United Ways 18

Michigan Association of United Ways 19

Michigan Association of United Ways 20

Michigan Association of United Ways 21 We’re In the Impact Business Donors Are Our Customer

Michigan Association of United Ways 22 Community Impact Program Outcomes – Community Outcomes – Community Impact – Collective Impact Most have aligned their work in Health/Education/Income Inconsistent where we are on “Community Impact” (From Business Performance Matrix Results 2013): A = Starting or Traditional (26) B = Progress (5) C = Substantial Progress (5) Note: Seeing results as you progress

A.L.I.C.E. Report Asset Limited Income Constrained Employed

Michigan Association of United Ways 24 Fundraising Workplace reductions Diversification (Grants, Foundations, etc.) Specialized Campaigns (Women’s Leadership, Issue Focused) Donor Churn Year-Round Resource Development

Michigan Association of United Ways 25 Re-thinking Engagement LIVE UNITED Education, Income, and Health Strategies Individual Engagement Donor Retention Tools Relationship Management Affinity Programs

Michigan Association of United Ways 26 Relationships Popular Brand; Overall trust down (along with other nonprofits during recession) More competition; Specific Causes Challenge Communicating Who We Are Market Our Work As Products Shift from Business to Individual (Customer Relations Management) Governance/Volunteers Are Key!

Michigan Association of United Ways 27 Capacity Most Nonprofits (including United Way) do not have the capacity to do what they envison! Capacity can come in various forms Building Capacity through: Partnership/Collaboration with other United Ways Regional Collaboration – Marketing in Tri-Cities Partnerships – Joint Back Office Processing Merger – Ionia/Montcalm Note: Most Start Too Late!!!! Talent Management & Transition Planning

Discussion Questions -How are we positioning our governance for the “future of non-profits”? -Give, Advocate, Volunteer – where should we focus more energy? -What strategies do we want to incorporate to build capacity?

Thank you for participating!

Michigan Association of United Ways 30