United Way Worldwide Update (Resourcing our Future) Michigan Association of United Ways Annual Meeting

United Way’s Vision Vision: United Way envisions a world where all individuals and families achieve their human potential through education, income stability, and healthy lives Mission: To improve lives by mobilizing the caring power of communities around the world to advance the common good 2

Elements of Strategy I.Focused on greater impact, more revenue & more donors II.5 Bold Plays are core to the strategy III.Investing in our strategy is essential  Internal investment (cash reserves)  3 rd Party Support  Member Dues IV.We need to work together differently  Network Operating Group V.Initial focus is on a digital strategy  In workplace first; out of workplace next 3

Strategy Elements I. Greater Impact, Revenue & Donors  Expanding our platform for community impact:  Products designed to drive impact and revenue growth  e.g. Club Connect, Born Learning Academy, 211 Centers  Enhancing revenue growth: strategic agreements with corporate partners and enhanced relationships with high-net-worth individuals  Driving donor growth:  Text to mobile pilot  Crowdsourcing App  Mobile engagement platform to engage individual donors in/out workplace  Big data analytics to better segment donors 4

Strategy Elements II. Bold Plays are Key to Strategy & Address Challenges Challenges We FaceBold PlayKey Actions People don’t know what United Way does Unclear how to drive sustainable growth of impact and revenue BP 1: Clear Business Model Aimed at Impact- Revenue Growth Deliver simple, universal, and compelling messages about United Way Build clear pathways for growing impact and revenue Weak relationships with individual supporters BP 2: World-Class Individual Experiences Scale early wins: Text to Mobile, LINC, Club Connect, and Crowdsourcing Develop shared Digital Services Capability Weakening relationships with corporate partners BP 3: Corporate Partnership Agreements Establish corporate agreements that outline clear social impact and business value goals Adopt consistent relationship management and accountability protocols Securing large, game- changing gifts BP 4: New $10M Giving Level Refresh and expand Tocqueville Society with new $10M level; Position United Way as a philanthropic partner Working “as one” when it is to all of our advantage BP 5: Network Partnerships Drive aligned execution with shared agenda and financing model 5

Strategy Elements III. Investment is Essential  UWW Internal support - $4M of 2015 cash reserves for seed funding  Third Party support - Engaging with large donors to help fund initiatives  Original US Member Dues Modification Proposal  Increase Network dues support by approx. $3.5M-$4.0M  Modify formula to 1% of Current Year Support vs. Campaign  Better aligned to business model  Incorporates all cash giving to UWs (including grants, sponsorships, endowment gifts, etc.)  Increase dues minimum to $2,000/year  Effective Jan 1,

Investment in Strategy is Essential Cost of Value Added Initiatives/Services Increase attributed to execution of Enterprise-Wide Strategy & Bold Plays $Millions 7

International Revenue 3 rd Party Support UWW 3 rd Party Support Supplements Dues Decline $Millions 8

$Billions Business Model is Changing Campaign Revenue in Decline while CYS Revenue is Increasing

Engagement of Network Before Seeking Board Approval  Engaged >1000 people (CEO’s, Board members, staff, etc.)  100+ in-depth conversations, meetings and state-wide convening's with CEO’s & CFO’s  Partnered with National Council on Nonprofits to address government grants cost recovery  Established “US Resourcing our Future” working group to address long- term sustainability and growth of US Network  Comprised of 23 UW CEO’s & CFO’s  Conducted survey & developed scenarios based on areas of greatest concern  Provided input into dues formula modification Based on this feedback, dues formula was modified (see next page) 10

U.S. Network Resourcing Our Future Working Group Input to Membership Investment Recommendation May 8, 2015 Original UWW Proposal (January 2015) Modified Proposal w/ Working Group Input (May 2015)* Minimum$2,000$1,500 Dues basisCurrent Year Support (all cash giving) Dues rate1% Treatment of outright gifts to endowments ** Dues assessed on gift in full in the year donation is pledged Dues assessed on half the gift in the year it is received and the second half the next year Exclusions  Non-local portion of public sector campaigns   Non-local portion of public sector campaigns  Disaster funds  Government grants (in 2016 only) FeesNoneA “+ fee” will be assessed in 2016 only:  No more than.1% for revenue exceeding $750K.  No fee for revenue less than $750K Phase-Ins3-year phase-in for significant increases in year phase-in for significant increases for years 2016 and 2017 Training creditsIncreases proportional to dues * The Working Group recommendrd review of the membership investment structure by the National Professional Council on a periodic basis. 11

Investment will Result in Additional Value United Way Worldwide Value Added Initiatives/Services Resource Development Impact and Performance Since 2002 United Way Brand Resource Development Impact and Performance Worth $34.7 billion; only nonprofit in Forbes’ Top 50 Most Valuable Global Brands Live United advertising $60 million in donated media NFL partnership Global Corporate Leadership program Endowment and Planned Giving services Tocqueville Society Grant support International Donor Advised Giving Tools to measure and demonstrate impact 10 year EIH goals Board development Executive Leadership development Conferencing, training, career development Additional Value for United Way Brand Resource Development Impact and Performance +Launching UW’s 1st original programming series +Innovative, interactive website to enhance donor experience +Next generation advertising +Next generation co-branded partnerships +Partner-of-choice agreements with Top 100 +Mobile engagement of individuals at the workplace +Worldwide Ambassador Program +Innovative revenue-driving partnerships such as Club Connect +Execute a robust, ongoing individual engagement plan for donors, advocates, and volunteers +Digital services to better connect donors to UW +New capacity and performance acceleration tools 12

IV. UW Network Working Together Differently  Network Operating Group created as a new way to work together to address strategic challenges  e.g. donor loss and individual engagement  Established as an action-oriented, decision-making body  Centered on digital services capability  Designed for quick wins and accelerated results  LUWs and UWW will make multi-year financial commitments  Each LUW to commit $200K/year for 3 years  Investment will offset membership dues increases beginning in 2016  UWW will be fiscal sponsor 13

V. Initial Focus on Digital Strategy A shared Digital Services Capability will transform individual engagement efforts This work always benefits from, and often requires, scale. Together we can produce more value at lower costs. We can model from successful startups and peer NGOs. A modern and powerful shared individual engagement Digital Services Capability. Data ManagersDesign ThinkersDesignersTrainers AnalyticsStorytellersDevelopers MOBILE DATA CONTENT Phasing: From primarily outsourced experts—with internal hires to maximize value—to an in-house capacity. 14

Individual Engagement Challenges Immediate Improvements 2015 Digital Services Team 2016 Enterprise Infrastructure 2017 Donor Retention (in workplace) -“Win-back” content -Purchase enriched data -Purchase delivery help -Full customer journeys from 1 st gift to renewal -Data analytics -Optimized delivery -User-specific content -Real-time donor data -Automated delivery Millennial Acquisition (in workplace) -”Welcome” and “Share with Friends” content -Purchase new names -Purchase delivery help -Full journeys -Integrate social & mobile delivery -Custom app -Single sign-in system -User-specific content -Unified back-end data Retiring Boomers (before they leave workplace) -“Stay involved” content -Timely thank you -Plan Full journey testing -Delivery optimization -Data modeling -User-specific journeys -Automated for all retiring donors V. Digital Strategy - Potential Improvements 15