Case Study: United Way Worldwide

Case Synopsis

In $2019,$ United Way Worldwide remained America's larg$$est charity organization. However, the organization had reached a plateau in donations. The total funds collected had increased from the low point in $2017,$ but were basically level with the amount that had been raised in $2000.$ The same amount of money raised, yet there were still significant challenges faced by communities around the world, most importantly lack of education, unemployment, poor health care, and homelessness.

United Way released an analysis noting a decline in the fraction of Americans giving to charity, especially among middle$-$ and low$-$income families. The company stressed on the need to rectify the declining behavior, as it said that $"$if these changes continue in the long term, it is unlikely that continued growth in philanthropic giving will be sustainable." What could be done about the continuing trend$$reduction in giving, increase in need?

The United Way Case illustrates the problems that have been created due to a well$-$established business model, in a challenging environment, facing the possibility of declining growth and competition from new directions, all under the threat of potential bad news that could erode trust. This case shows how a mature brand, with a powerful and mostly honorable history, can still be in need of a strategy.

In this environment, Brian Gallagher, United Way of America CEO since $2002,$ had established membership standards to enhance the level of accountability and transparency in United Way affiliates' operations, re$-$branded United Way as doing "what matters" in the communities it served, and updated the "standards of excellence." These standards provided a description of best practices to better reflect the organization's strategic shift. Regarding the mission of United Way, Gallagher had worked to change the focus from fundraising to community impact, from "How much money did we raise?" to "How much impact did we have on our community?"

United Way had transitioned from its traditional role as strictly a fundraiser to a mission focused on identifying and addressing the long$-$term needs of communities. In the past decade, the concern that surrounded American donors was their ability to access information regarding how their donations were going to be used, what percentage of the charity's spending went toward actual current programs, how their privacy was going to be protected when giving via the Internet, and whether the charity met voluntary standards of conduct. As they moved into $2019,$ United Way's biggest challenge was the need to retain donors by leveraging a digital strategy, one that allowed the charity to better connect with donors, to engage and support the causes they cared about.

Based on what you know, even before reading the case, what is your opinion of United Way and other broad$-$based charities such as the American Cancer Society and the Salvation Army? What unique responsibilities does United Way have to its stakeholders, and how successful has the organization been with its overall strategy? Is United Way's mission still viable? Was Gallagher's shift in strategy sufficient to ensure the continued viability of the United Way, or was its very mission perhaps no longer relevant? What are the current challenges facing United Way? What are key issues in the general and nonprofit charitable giving industry environments that affect United Way's operations?