I. BACKGROUND: ORGANIZATION AT A NEW CROSSROADS
In 2003 our Board adopted a Strategic Guide intended to transform UWCM’s operating model by moving from a focus on fundraising toward community impact. The basic idea was that we would measure success not just in terms of dollars raised, but as a direct reflection of the sustainable difference we made in people’s lives. As part of this process we convened representatives from six jurisdictions to shape a “community agenda” for which each partner could accept some responsibility. From this broader agenda, our Board identified three basic building blocks of support: Education—school readiness and youth achieving their potential; Income—basic needs such as safe, stable, affordable housing and economic self-sufficiency; and Health—family safety—keeping people free from abuse in their homes and relationships. Funding under this new model, begun in 2007, met with mixed reactions. While some donors welcomed our new focus, others were unhappy because their favorite agencies were not funded. It quickly became obvious that key structural aspects—from transactional fundraising and an outdated funding process for contractual relationships—were not aligned with the new operating model. While our intention was to be inclusive in setting a community agenda, it was naïve to think we could coordinate critical stakeholders’ thinking, timing, and resource allocation on such a large scale. Progress stagnated and success was limited. To make the situation worse, soon after we implemented the new model the country spiraled into the second-worst economic downturn in nearly a century, and we were forced to re-focus on basic and emergency needs. We found ourselves at a new crossroads with different opportunities and challenges, but the OPPORTUNITIES sparked optimism: A. Strong Philanthropic Market — Individuals in central Maryland are generous. We continue to attract many leadership and major givers, although 50% designate their gifts. B. Expertise and Tools for Data-Driven Decisions — Thanks to their proven expertise, our staff routinely engages with organizations and agencies at local and state levels. This work builds credibility for UWCM, generates interest in what we do, and proves our value as a philanthropic partner. Our new tools—the Community Issues Management System (CIM), 2-1-1 reports, and the Statewide Homelessness Management Information System (HMIS)— constitute a solid base of factual information about a range of issues. These tools enable us to deepen our base of knowledge and therefore improve our capacity to make decisions based on demonstrated need. By leveraging such knowledge UWCM can: •
identify areas of greatest need;
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recognize service short-falls across the region;
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assemble and institute the most effective partners and programs;
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be more innovative in closing the partnership gaps among local leaders;
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gather real-time evidence about results and progress; and
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become a trusted “voice and advocate” for people in need.
However, our optimism was overshadowed by some considerable CHALLENGES that continued to frustrate progress: A. Alignment and Execution — The execution problems we experienced were symptomatic of underlying issues. UWCM lost credibility because our business plan did not align fully with the community-impact model. B. Decreasing Revenue — Revenue has been decreasing over the last eight years, driven by a declining donor base and lack of diversification. At the same time, average gift amounts have gone up, and we have had success outside the workplace—notably with the Tocqueville Society and the Women’s Leadership Council. The net effect has been stabilization of revenue in the short term despite continued diminution of our donor base. C. Increasing Expenses — While total revenue was decreasing, expenses rose. Our overhead rate of 20.4% in FY2010 was above the median of United Way system peers. D. Donor Engagement and Interests — Transaction-based workplace campaigns obscured meaningful connections with donors. Their expectations of realized value varied locally, as well as regionally, ranging from ending homelessness in the long term to providing shelter more immediately. 6