‘Tis the season for charitable giving. An organizational chart is making the rounds on social media to help ensure donated dollars assist charities who make the best use of them. Five nonprofits on the top of the list have notes under their headings declaring how much money their CEOs make and/or how much of a donated dollar goes to the cause. United Way is in this list, noting President Brian Gallagher receives a $375,000 base salary along with expense benefits. However, the structure of United Way tells a different story, according to United Way of Santa Rosa County (UWSR) officials.
UWSR operates in two ways: supporting other local nonprofits and providing direct assistance through programs. While UWSR employs fundraising to support its first function, its own programs include Money Cents centered around budgeting education, a hands-on volunteer day called Day of Caring and more.
Kyle Holley, who recently became the grants and major gifts manager, said, “It's a little unfair comparing the salary of one guy in a big metro area with staff in rural America. People should ask their local United Way to share local salary and administration costs.” At 36 years with United Way, Executive Director Guy Thompson said he makes $39,000 annually.
According to the UWSR website, “United Way Worldwide, based in Alexandria, Virginia is a membership association for the 1,300 separate, independent United Ways across the country, and now worldwide. United Way of America does not fund programs,” the site says.
Thompson stressed this distinction. “I think the biggest thing is we're totally autonomous. We pay dues, which are very little, but we share the national name. Each United Way in different communities is different in some way or another and run by a local board of directors, so Brian Gallagher has nothing to do with our United Way and its management.”
According to the UWSR website, the connection to United Way of America has to do with support. One percent of all money raised locally goes to United Way Worldwide, but for the purchase of services. “This payment for services is not mandatory, but rather an issue carefully weighed by our local volunteer leadership who feel the services received by United Way Worldwide (i.e. national branding, NFL advertising, national market research, training, etc.) far outweigh the cost.”
According to the Florida Department of Agriculture and Consumer Services’ Gift Givers’ Guide, 12 percent of UWSR’s expenses were administrative costs, based on 2013 IRS form 990. With 10 percent going to fundraising expenses, this means 78 cents of every dollar UWSR spent went toward the work of the organization.
While he couldn’t comment on how other United Way organizations are run, Thompson said, “We try to keep administrative costs low.” Other than earning paid vacation days, he said UWSR employees work without benefits such as retirement.
For any further inquiries into UWSR’s financials, they’re available on the website. Visit www.unitedwaysrc.org and click on “Financials” under “About Us.” There are currently the three most recent Form 990s there, the document nonprofits are required to submit every year to the IRS.
This article originally appeared on Santa Rosa Press Gazette: Local United Way responds to social media criticism