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WHAT IS UNITED WAY’S OVERHEAD? WHY DOES UNITED WAY CHARGE AN ADMINISTRATIVE FEE?

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WHAT IS UNITED WAY’S OVERHEAD? WHY DOES UNITED WAY CHARGE AN ADMINISTRATIVE FEE?

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Just like any business, there is a cost associated with the provision of quality services. However, United Way works responsibly in order to maximize the value of our donors’ investments in the community. Since 2002, United Way has reduced its overhead expenses (related to fundraising and associated management costs) by over 42%. Currently United Way’s overhead is 12%, one third of the national recommended standard of 35% cited by the Better Business Bureau’s Wise Giving Alliance (www.give.org).* United Way of Allegheny County’s fee is equivalent to its overhead; 88 cents of every one dollar goes to those in need. Effective with the 2003 Campaign, the United Way of Allegheny County’s Board of Directors implemented an administrative fee on donor designated gifts to specific agencies. Previously, the cost of operating United Way had been supported primarily through unrestricted donations; designated gifts incurred a small fee per designation. By allocating a small portion of all designat

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