United Way was established essentially as a financial intermediary, providing fund-raising activities, primarily through donor organizations’ employee payroll deductions, and distributing the funds to agencies that could actually deliver services to clients in a target community. They raised and distributed funds to the most effective local service providers, built alliances and coordinated volunteer support among charities, businesses and other entities. This case profiled United Way and the trials and tribulations of management it has endured since its existence of over 120 years ago and is still ongoing.
The problems that lie within this organization is that there is a lack of trust on how the funds are spent and the lack there of financial accountability & best practice models of management. There have been three high profile cases since 1995 publicizing mismanagement of funds within management and employees of different levels of local chapters to the national parent organization. United Way needs to overcome the publicity of their governance problems with fraud, money laundering, embezzlement, and conspiracy schemes. Let’s use, for example, the SWOT analysis to take a deeper look into this organization. Strengths
Dedication to improving communities across America and nationally
Brings neighborhoods together and facilitate measures toward making a difference to better the world
Over 40% increase of new non-profit members since 2000
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Weaknesses
Reached plateau of fundraising in U.S.
Difficulty recruiting & keeping qualified fund-raisers
Difficulty raising money for general operating costs
Lack of strategic focus & unity among all chapters locally & nationally
Lack of trust among donors
Concensus over mission & goals
Opportunities
Growth from international members
Individual & business engaging in charitable giving expanded
Measuring results & create most value for society with resources
Adopting a code of ethics and expanding on level of accountability for employees and members
Threats
Competition for donations
A growing focus on large gifts from wealthy individuals being publicized
Stability of economy
Majority of their problems come from mismanagement of funds and a code of ethics. They could implement a more stringent process on access of funds and who handles them. They could do a more in-depth back ground check on their employees especially the ones that handle the finances. They could hire an outside accounting firm to handle their finances. What I suggest is to put in place a Plan Do Check Act on all levels, especially paying particular attention to their F&A Department. These employees should have to have a PDCA in place when distributing funds to anyone. The process should require at least 3 approvals from management before the funds are disbursed and a check is written out from accounting and no two people from the same department should be able to sign off. I would also advise of a restructuring of management at all levels; locally and nationally and it would require all chapters to be uniform across the board on rules and regulations for all departments.
