What percentage of United Way money goes to charity?

What percentage of United Way money goes to charity?

Per their Annual Report for 2018, United Way Worldwide claimed combined administrative, non-operating and fundraising expenses of 5%, meaning that they spend approximately 5 cents for every dollar donated on organizational costs, and the other 95 cents go directly towards community projects.

How much of my donation goes to administrative costs?

Approximately 35 percent of funds go to administrative expenses.

Is United Way a bad charity?

Star Rating System by Charity Navigator This charity’s score is 83.44, earning it a 3-Star rating.

Why give to United Way instead of directly to charity?

By giving through United Way, donors are assured their gifts support initiatives and programs focused on Education, Health and Income. This support allows smaller local agencies to benefit from fundraising connections made by United Way and allows theirs staff to focus directly on providing services.

How much overhead does a United Way agency have?

This is well below Better Business Bureau Wise Giving Alliance Standards for Charity Accountability that allow up to 35 percent in overhead costs. Each local United Way agency, however, is different, so the first thing you need to do is find your local agency’s information about its overhead costs.

What kind of tax return does United Way have?

United Way Worldwide is a 501 (c) (3) – a non-profit organization – and is required to submit an IRS Form 990 annually, as does each of the local offices. The 990 is a tax return that provides details on revenue, expenses, assets and liabilities and is invaluable to those who want to know where their charitable dollars are being spent.

Where do I find out where my United Way money goes?

Another option is to go to the home page of the Charity Navigator website, and type into the search bar the full name of your local United Way. There you will see a full financial accounting, including administrative expenses, fundraising expenses, and program expenses.

How are local United Way funding decisions made?

All local funding decisions are made by the individual United Ways with the input of local leaders and community stakeholders. United Way Worldwide does not control funding decisions by local United Ways.

Posted In Q&A