I was raised in our local United Way. My Father was director of the local Boys' Clubs and I was a Scout from Cubs on to Eagle. I then became a DE for the local council. That lasted for a year and a half before I left (the reason is a whole other forum) to work for another UW agency. All this means that I have 36 years experience dealing with UW. Most of what has been posted here is right. 1) Designate funds to a partner agency, and the UW decreases that agency's allocation by the amount you gave, so it ends up negating your designation. 2) Do they tell donors this? Only if you ask. 3) UW is very much like a Scout Council in its organization. The local allocations committee decides who will receive funding, and how much. Whether or not a UW funds scouting is a local decision.
Now, some observations followed by some interesting news. If you want your money to go to Scouting, split your contribution between one or more Packs, Troops, etc. and the Council. While there are a number of very good people in the Professional Service, including my son, like any other aging agency it has become top-heavy, out of touch with those of you who do the real work, and has become a drain on the finances of local councils. In its current form, the Professional Service has outlived its usefulness and is in need of serious overhaul. Much like the United Way. I have always been opposed to Family FOS. Families already pay a hefty amount just to have their children in the program. They don't need one more arm of Scouting asking for more. There is no integrity to these appeals.
The profession is about raising money and increasing membership. They made that abundantly clear to us at the National Executive traning school. Ever wonder why the DE who is supposed to be supporting your program efforts only wants to talk about money, membership and recharters? It's because his/her job depends on it. What they do to support the health of your unit doesn't enter into the evaluation of their performance.
Finally, back to the UW. One of the trends nationwide for UW's is to go to a two year grant system. Agencies, including the BSA, will only have to apply for UW funding once every two years. That's the good news. The bad news is that being a Partner Agency for one cycle will not guarantee that status for the next cycle. Councils will have to reapply every two years and the local allocations committee will decide whether or not to fund for another cycle, or drop the Council in favor of another agency. Any local agency will be allowed to apply for funding. Get ready to encounter some serious competition for funds.