United Way of Central Maryland Partnership Board Orientation Late Summer 2011

1. Carroll County Harford County Baltimore County Baltimore City Howard County Anne Arundel County United Way of Central Maryland Partnership Board OrientationLate Summer 2011

2. Today’s Agenda • What a Partnership Board Is and UWCM: Who We Are, What We Do and How We Do It • Important Items to Be Aware of • Your Role-Responsibilities and Expectations • Tools to Assist You Based on UWCM’s Online Board Manual

3. I. What a Partnership Board is and UWCM: Who We Are, What We Do, How We Do It Grace, Partners in Care

4. A Partnership Board is… Carroll County Harford County Baltimore County Baltimore City • “Eyes, ears , voice and presence” of UWCM in its jurisdiction • One of UWCM’s 28+ board-level committees(not the governing board, but more than advisory) • Fulfills three primary roles: • Community Investment (distributing $$) • Friend Raising (enabling fundraising) • Community Engagement (creating visibility and fostering volunteerism) Howard County Anne Arundel County

5. United Way System • Improve lives for people throughout the world • Create stronger, healthier and more supportive communities • Be local and global simultaneously • Convene stakeholders to create positive, long-term social change • Commit to build the capacity of others What Effect Does the Global United Way System Have on UWCM?

6. UWCM’s Place in United Way System UW Worldwide – United Way, as a system, brings focus, expertise, scale, diversity, collaboration and standards of excellence (accountability, transparency, efficiency & effectiveness). 46 countries with 2,000 affiliated organizations $5.7B USD invested USA – all 50 states/ 12 in Maryland 1,283 independent 501(c)(3) organizations $4.2B revenue UW of Central Maryland (UWCM) – City + 5 counties; founded 1925 2.7 million people; 50% of population of Maryland 19th largest United Way in U.S. ($34.77M campaign in 2010) Reach: 62 Impact Partners (large grants) plus many grantees (smaller grants); over 1,300 annual workplace campaigns; almost 60,000 donors

7. Your Place Within UWCM

8. Mission: Mobilize the community to improve people’s lives. A. Who We Are Our Value Proposition

9. B. What We Do Best? Community Impact Two major goals underpin our 2010-13 strategic plan: 1. Address People’s Basic Needs 2. Fundraise Effectively & Efficiently

10. UWCM Is Closely Associated With Helping The Needy & Suffering • “Community Safety Net” • Designations: Basic Need Agencies #1 • 2-1-1 at UWCM (First Call for Help) • Emergency Response Fund • The Journey Home • Fiscal Manager – HUD Homelessness Rapid Re-Housing Grant ($9.5M)

11. UWCM Uniquely Positioned With Tools & Relationships To Understand; Address Basic Needs: • Statewide 2-1-1 resource database • Community Issues Management (CIM) System • Homeless Management Information System (HMIS) Administrator • Relationships with agencies, foundations, businesses & government • Local Partnership Boards • Trusted regional convener 2010 Top Needs Information, Expertise, Relationships

12. Basic Needs Imperative: It’s Where the Data Lead Us • Demand outpacing supply: greater vulnerability from economic changes – job loss, less private giving and outlook for less government support • “Point in Time” homelessness census 2007-09: • Anne Arundel INCREASED by 17.9% • Baltimore City INCREASED by 13.9% • Baltimore County INCREASED by 77.6% • Carroll INCREASED by 15.2% • Harford INCREASED by 4.8 • Howard INCREASED by 41.5% • UWCM’s white paper: Fill the Gaps

13. Regional Concentrations Of Poverty Predominate In Baltimore City . . . Pockets of Poverty

14. In fact, pockets of poverty exist in every jurisdiction we serve

15. C. How We Do It: Basic Needs Continuum (Framework & Investment Strategy) Basic Needs Continuum is designed to help people get out of crisis, stay out of crisis and achieve a higher quality of life. Funding includes non-competitive , competitive and special grants .

16. Efficient & Effective Fundraiser • Member of largest charitable organization in US & world (national & global network) • Solicits 400,000+ prospective donors in aggregate • 650 private sector business relationships in central Maryland • Source of low cost funding for more than 1,600 agencies plus supports such as advocacy and volunteerism (2 million accounting transactions annually) • Open, flexible designations* for as little as $1.00 per week • Designation fees only 5% with a $5 minimum / $500 cap • Well within Better Business Bureau’s Wise Giving Alliance overhead guidelines of ≤35%: UWCM averages 18.5% over 10 years (approx. 18% for FY2011) • MANO Standards for Excellence certification (11 years) * In 2004 we restricted designations to health and human service organizations only

17. Strategic Imperatives to Support Basic Needs & Fundraising Goals • Focus programmatic work exclusively around basic needs • Established an intuitive, flexible, merit-based and transparent funding framework that is data-driven and regionally inclusive • Aligning volunteerism, thought leadership & advocacy • Enhance fundraising acumen and execution • Personalize the donor experience • Become a community aggregator of data and context via trusted web site • Lower overhead without sacrificing value • Adjust governance structure accordingly

18. What Have We Done So Far? (Since September 2010) • Invited our 7 affiliates into new basic needs funding model • Aligned our governance structure to new strategic direction – including establishment of Baltimore City Partnership Board • Refined investment strategy, decentralized funding process and funded agencies according to our new model • Defined community data role, run pilots and enlisted stakeholders • Mapped out and began implementation of our next generation marketing, web and social media strategy for donor engagement • Created and launched a community engagement and volunteerism strategy

19. II. Important Items You Should Be Aware Of Based on the economy and our 2010-13 strategic direction Cynthia, Bridges to Housing Stability

20. UWCM’s challenge is to be: Long-Term and Short-Term

21. New Investment Strategy and Funding Process launched 12/10 • Kept it local with key decisions made in the jurisdictions • Engaged local experts who know the needs and existing assets in the jurisdiction best • Created a data-driven, equitable way to distribute allocable $$ based on population and poverty • Decentralized the funding process

22. New Funding Model- IntentMore Transparent & Intuitive For Corporations, Donors And Agencies • Transparency builds trust and confidence • Trust and clarity lead to more giving • Focus of all non-designated dollars increases impact • Opportunity for greater collaboration • More dollars allocated on merit

23. Structural Changes Made to Support New Direction UWCM Partnership Boards • Restructured to play much greater role in identifying local needs & priorities, selecting programs to fund (“Community Impact” grants); and tracking results. Also respond quarterly to discretionary requests (“Community Response” grants). • Additional members added to boards: Continuum of Care Leads, Local issue experts - Public Schools, Local Management Boards, Department Social Services • Partnership Board established for Baltimore City early 2011

24. Regional “Community Impact” Grant Funding for 2011 $2.8 million = allocable $$; does not include contracts, designations, regional initiatives, special purpose fund, AFL-CIO Community Services, etc. $$ available to each jurisdiction based on general population in jurisdiction and share of number of people in poverty.

25. Jurisdiction Overview

26. Example: Baltimore City(Example of how it works in a jurisdiction based on the amount available) Annual “Community Impact” Grants Quarterly “Community Response” Grants

27. Example: Baltimore City

28. Example: Baltimore City, cont.

30. Example: Baltimore City

31. Quick Overview Of Where Revenue Comes From and How It Works

32. “Headwinds” Dealt With Declining Revenue (campaign and investments) recession & unemployment, erosion of endowment, loss of local HQ & regional HQ, higher unpaid pledge rates, changing workplace/workforce, baby-boomer retirement, “strategic corporate philanthropy”, in-plant campaigns 1 High Overhead  High among other large UWs, pension liability/cost drag, campaign costs are front-loaded, 7years remaining on 10-year lease, fewer loaned executives to supplement paid staff, liberal donor choice options adds to cost structure 2 Donor Choice $11M of top line revenue is CFC, MCC, CCC (100% designated), in private sector, UWCM maintains low minimum designation amount 3 Contractual Affiliates  7 longstanding, bi-lateral, non-competitive, automatic “contracts” were an anachronism in the UW system and irritant to many businesses and donors, work did not fully align with impact yet they drew more $$ than all other UWCM grants and programs combined 4 Discretionary Pool All of the above left UWCM with insufficient funds to create measureable, sustainable impact and build trust 5

33. Private Sector Campaigns 2001 - 2010 “Flat” is the new “outstanding”

34. System Losing Donors, Losing Reach UW Growth vs. Philanthropy & the HHS Sector: 2002-07 • UWCM experience parallels national trends: • Losing donors - 7.2 million donors lost in 8-yr period (2001-2008) • Losing reach - 50.6 million individuals solicited in ‘08 compared with 58.7 in ‘07 (decline of 8.1 M in one year) 34 Source: UWW Research

35. However, Our Addressable Market Is Large Locally, of the top 100 largest companies • 49 do not run workplace campaigns benefitting UWCM • 36,900 are employed in these organizations • 17 declined supporting UWCM in the past 12-18 months • 2 agreed to run a campaign in 2010 Nationally • Giving to health & human services represents only 9% of the total Our goal is to direct a greater share of giving to human health and services across all channels Our objective is to drive increases in giving to health and human services & serve as a “voice and advocate” for those who are vulnerable and at-risk.

36. Greater Value Must Come With Lower Overhead In FY2011 (ended 6/30/11): • Increased net distributions to agencies by $670K despite an 8% decline in the private sector campaign in 2009 • Donor designations: + $1.30M • Impact partners funded competitively: + $0.22M • Impact partners funded by contract: – $0.85M • Reducing estimated overhead to 18% by 6/30/11 (final audit of this number is underway) • Cut UWCM operating and programmatic expenses by $358K • Reduced FTEs to 77 from 83 -- Three positions are being funded by new grants or contracts bringing total grant/contract covered positions to 13 Our target is 15% overhead by the end of 2013.

37. “United Way Campaign” is Really 4 Campaigns:Revenue by source VS how much we control Total Raised 2010 Campaign: $33,645,000 What we keep = GOLD only % * *Includes designations from other United Ways and other Combined Federal Campaigns Public sector campaigns are established by law; governed by contract. “Flexible” $$ are those designated to UWCM or its contract agencies.

38. What Does This Really Mean? We Raise, Manage And Distribute $35 Million+ Annually. In some instances we have a say over how the money is used, in others we do not. We focus on total $$ managed, not just on what UWCM directs to Basic Needs.

39. Campaign Spending SnapshotBased on Anticipated 2010 Campaign Funds & Related Income COMPETITIVE GRANTS $6.59 Million Includes county discretionary grants , AFL-CIO, Special Purpose Fund Public Sector UWW Licensing Req’t $0.25Million DESIGNATIONS $8.08 Million Estimated Collected Pledges & Related Income** CFC, MCC & CCC $8.97 Million Fundraising, Marketing & Awareness $3.71 Million 2-1-1 MARYLAND $1.24 Million Public Sector UWCM SERVICES $1.82 Million Impact Strategies Div; Vol. Dev.; Journey Home ** Excludes certain grant income, realized investment gains, bequests and other income recognized in UWCM’s financial statements Administration $2.15 Million $1.39 Million Programs= $26.70M + Overhead= $7.50M = $34.20M [ $17.73M + $8.97M ] [ $6.11M + $1.39M ]

40. Actions That Can Continue to Grow $$ & Donors • “Product” that resonates with most donors direct line of sight to results • World class campaigns and better segmentation • Personalization of the giving experience • Engagement through easy access to data and substantive perspective on issues of importance to the social health of the region • Gradual diversification from workplace giving through web and social media

41. III: Your Role: Responsibilities and Expectations Tony, Catholic Charities’ Christopher Place

42. United Way of Central Maryland 2010-13 Community Partnership Board Member Position Description Title:Community Partnership Board Member Reports To:Chair, Community Partnership Board Partners With: Designated lead UWCM staff from Development and Impact Strategies Purpose:The Community Partnership Board is a board-level committee of United Way of Central Maryland (UWCM) and reports to UWCM’s Board of Directors. While the Partnership Board is neither a separate United Way nor a governing body, its members have significant responsibility in raising and distributing funds and assisting in monitoring funded agencies. The Partnership Board ensures effective implementation of UWCM’s mission and strategic plan and promotes UWCM’s value in addressing needs in the local jurisdiction. Roles include: helping obtain adequate resources, assisting in grant making and funding accountability and enhancing UWCM’s image, positioning and visibility in the local jurisdiction. Responsibilities: 1.       Community Investment - Evaluate and prioritize basic human needs in the local jurisdiction using data, research, expertise and local knowledge. - Review annual grant applications, directed grant opportunities and discretionary fund requests and make funding recommendations for the local jurisdiction. - Review and monitor performance reports of all funded organizations. - Develop partnerships with local businesses, human service providers, foundations and government agencies to address community issues. 2.       Community Engagement - Build UWCM’s image, visibility, relevance and trust in the local community. - Represent and advocate for UWCM’s work in the community with local, state and federal officials. - Support and promote local UWCM volunteer engagement activities. 3.      “Friend-Raising” and Door Opening - Meet with individual, corporate, and workplace customers to educate donors and promote UWCM’s value. - Help secure/retain financial gifts, workplace campaigns, in-kind donations and event/engagement sponsorships through “friend-raising” and “door opening.”

43. IV. Tools To Assist You Aaron & Tiffany, Boys and Girls Club of Harford County

44. 2011-12 Theme and Core Message Theme:Give Hope. Live United (This is an update of last year’s theme “Give Help for Today and Hope for Tomorrow.” We are placing more emphasis on moving people through crisis and towards self-sufficiency and dwelling less on the lowest end - crisis aspects - of the basic needs spectrum) Call to Action: Give. Advocate. Volunteer. Core Message: Special Campaign Appeal: “Strive for Five”/”Give Five” Campaign co-chairs Molly and Mayo Shattuck are encouraging everyone to “strive for five..” This message is not in print as it is already trademarked. You can informally use the imperative, “strive for five” or “give five” - $5 a week, a day or a month; 5% more than last year; 5 hours of service a week, a day or a month - whatever “five” works best for you.

45. Quick Elevator Speech At United Way of Central Maryland, we work with others to keep our fingers on the pulse of human needs across central Maryland. We know the effects of the recession are not over yet. What comes through loud and clear is to focus on those who are most vulnerable and those most at-risk. So, we are committed to meeting the basic needs of those in greatest need. This means getting people out of crisis, keeping people out and crisis and helping people achieve a better quality of life. …if given a few more seconds: Getting people out of crisis includes services like food, shelter and access to health care. Keeping people out of crisis means helping them get on with daily living through services such as transportation, eviction prevention and child care vouchers so parents can do their jobs and know the kids are safe. Helping people achieve a better quality of life includes special initiatives like permanent housing, asset building and financial literacy that lead to security and self-sufficiency. GIVE.ADVOCATE.VOLUNTEER.

46. …So, “Why United Way?” We gather facts to accurately identify needs. We work with others to keep our fingers on the pulse of human needs across central Maryland. What comes through loud and clear is to focus on those who are most at-risk; supporting services to help people get out of crisis, stay out of it and have a better quality of life. We make the most of time, energy and dollars for the greatest good. Last year, our fundraising, educational efforts and programs resulted in more than 1,600 nonprofits receiving support. This allowed them to focus on what matters most - helping people in need - without spending time or incurring the costs of raising the funds themselves. We make sure the work gets done right AND bring even more $$ back to central Maryland. Local, respected experts help us understand what works. That’s how we ensure your gift goes to where it gets real results. But United Way doesn’t stop there. We rallied more than 3,000 volunteers who gave almost 98,000 volunteer hours of service – that’s more than $2 million infused into the local economy. We also managed a $9.5 million federal grant to help people get and/or stay in affordable housing and helped bring in part of the statewide $17 million returned to individuals and families through free income tax preparation. That means more money for low-income people who are suffering most from the recession. We are accountable. We account for each dollar spent. Every year we receive the highest rating possible in our annual independent audit. We also hold the “Standards For Excellence” certification from Maryland Nonprofits. We respect your right to make your own choice. We gladly share information to help you make an informed choice, but it is YOUR choice. You can choose “United Way of Central Maryland” and give to urgent basic needs like food, shelter and access to healthcare or give through us to any health and human service organization in the U.S.

47. 2011:Breakout Year – Carpe Diem • Full year under new strategic plan • Positive feedback on focus/message • Now demonstrably “local” • Partnership Board empowerment • Compelling programs & regional initiatives • Affiliates realigned; “disincentives” eliminated • Exceptional campaign leadership • Improving overhead trends

48. 2011: Breakout Year • Tell Our Story • “Line of Sight” • Reach & Frequency • Consistent & Relevant • Local & Regional • New “Access to Healthy Food Initiative” (key part of addressing basic needs) • Engage Donors Actively Build Commitment/Reduce Churn • Leadership + • Affinity Groups • Commercialize Our Existing Products • Leverage 2-1-1 Capabilities • “Wholesale & Retail” Markets • Target Grants Aggressively • Encourage Non-Traditional “Campaigns” • Leverage New Governance Structure Activities not 100% mission- consistent & marketable

49. Questions? Pamela, Shepherd’s Clinic