Donations the way it SHOULD be

[Quixote]

The way it works - the accounting behind it or Enron accounting 101...

 

 

Several Scenarios:

 

#1

 

Local UW does not donate to BSA any longer.

 

I direct $10 to go to BSA via UW

 

UW directs around $7 to the BSA for my contribution.

 

#2

Local UW still donates to BSA - $100K per year.

 

I direct $10 to go to BSA via UW

 

UW drects $100k per year to BSA (my now $7 is part of this, but they take 7 other dollars and redistribute to other programs per the budget). If total directed giving is in excess of $100k per year for the BSA, my additional $7 goes to BSA, if not, it is moved to other programs.

 

For MOST states, I would doubt that BSA is funded any more money via your directed giving because not everyone does it that way - most employees donate without restrictions, therefore you can move from the General Fund to the other funds without restrictions.

 

This is generally the way most United Way finance types split the dollars, but as the UW is a local organization, just like your local council, it varies.

 

HTH & YIS

Quixote

 

p.s. When i found this out in the mid 80's i stopped all UW contributions from my check and now give directly to the charity of my choice which has the added benefit of funding them at a greater % of the $ after admin costs.

 

 

 

 

[dbraxtonw]

Local United Way organizations are individual entities that are affiliated with the national organization. Each has a high degree of autonomy. Each has an annual contract with each agency that receives funds and that contract sets out the formula for distribution of funds.

 

In some communities, every dollar designated for a specific agency (for example, Local Boy Scout Council) goes to that agency.

 

In some communities, the amount designated, minus an administrative percentage, goes to the agency.

 

In others, designated gifts will not affect the amount of money going to the agency unless the total amount of designations exceeds the amount set through the United Way allocations process.

 

In still others, contributors are told that they may designate gifts, but the annual contract requires the member agencies, as a condition of receiving ANY United Way funding, to forego any designated gifts that exceed the preset allocation.

 

There also may be other variations on the "designation" scheme. The bottom line is that it varies between communities. You should check with the United Way or a member agency in your community to find out how it is done locally.