A
Case Study of the United Way System
of Metropolitan Chicago: Grappling with Change
Donald
Haider
Abstract
The United Way system is the largest charitable fund-raising
operation in the United States, reaching nearly half of all adults
and raising more than $3 billion annually. Its consolidated approach
to fund raising has made it one of the nation's most respected and
cost-effective charities. However, its unique position in American
philanthropy is in jeopardy. In 1992, United Way of America, a nonprofit
trade association that provides various services for local United
way affiliates, was rocked by scandal requiring its executive director
to resign. Even before this event, United Way was in trouble, owing
to changes in corporate philanthropy, workplace giving, and donor
demand for choice. Competition for charitable giving escalated in
the 1980s, spurred by new social problems, new fund-raising methods,
and the growth of new organizations.
The United Way System of Metropolitan Chicago is the
largest United Way affiliate. It raises $100 million annually and
supports more than 450 health and human care organizations in the
Chicago area. In viewing the forces and trends working against United
Way, its board and management must decide how best to deal with
the growing problem of donor designation. How it decides this issue
may ultimately determine whether the organization remains an arbiter
of community needs. While other local United Ways are grappling
with these strategic decisions, they look to one of the oldest,
strongest affiliates in Chicago for answers.
Donald Haider,Kellogg Graduate School of Management, Northwestern
University
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