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2007 annual report
united way of america
table of contents


            Message from the President and CEO                        2

            Mission and Vision                                        3

            Promoting Financial Stability and Independence            4

            Helping Children and Youth Achieve Their Potential        5

            Making Connections to Get and Give Help                   6

            Crisis Response and Recovery / Alternative Spring Break   7

            Strategic Partners                                        8

            Tocqueville Award and Women’s Leadership Council          12

            Overview of Financial Position                            14

            United Way of America Board of Trustees                   16
October 2008

                                                 In communities nationwide, United Way is working to advance
                                                 the common good by creating opportunities in education,
                                                 income and health that will lead to a better life for all people. Our
                                                 partnership with more than 12 million individuals and thousands
                                                 of businesses and organizations drives the strategies that make
                                                 this goal possible. Thank you for your continued support.

                                                 In 2007 United Way of America, together with 1,300 local United
                                                 Ways, led many efforts to bring positive, sustainable change in
                                                 communities. We believe the most effective way to make a difference
                                                 in the lives of others is to act collectively, across sectors and borders.

                                                 In 2007, United Way made progress in several key areas.
                                                 We:

                                                 • Established the United Way Financial Stability Partnership™,
                                                   expanding Earned Income Tax Credit (EITC) outreach and
                                                   free tax preparation in 33 communities nationally, serving
                                                   more than 225,000 low-to-moderate-income taxpayers and
                                                   returning $269 million in total tax returns to communities

                                                 • Expanded the Born Learning awareness and
                                                   engagement campaign to 700 markets and 6 million parents

                                                 • Celebrated the 10th anniversary of 2-1-1 (the easy-to-remember
                                                   number that connects people needing or giving help) by
                                                   growing service to 72 percent of the U.S. population

                                                 • Increased revenue to more than $4 billion.

                                                 This annual report includes details about these and other
                                                 accomplishments, as well as the audited financial statements
                                                 that ensure accountability of our operations. Thank you for
                                                 your interest in and continued commitment to our efforts.


                                                 Sincerely,




                                                 Brian Gallagher
                                                 President & Chief Executive Officer




2   | United Way of America 2007 Annual Report
mission
to improve lives by mobilizing the caring power
of communities.

vision
we build a stronger america by mobilizing our
communities to improve people’s lives.

            United Way is a national network of nearly 1,300 local organizations working to
            advance the common good by focusing on education, income and health. These
            are the building blocks for a good life: a quality education that leads to a stable
            job, enough income to support a family through retirement, and good health.

            United Way of America is the national organization dedicated to leading the
            United Way movement. Local United Ways create long-lasting community
            change by addressing the underlying causes of the most significant local
            issues. Common focus areas include helping children and youth achieve their
            potential, promoting financial stability and independence, and improving
            people’s health. It takes everyone in the community working together to create
            a brighter future. So we bring together people from all across the community–
            government, business, faith groups, nonprofits, the labor movement, ordinary
            citizens–to tackle the issues. Because we all win when a child succeeds in school,
            when a family becomes financially stable, when people have good health.




                                                                   United Way of America 2007 Annual Report |   3
promoting financial stability
and independence
People throughout our country are facing increasingly complex                   2007 results included:
and difficult economic and financial challenges. Wages have not                 • More than 225,000 low-to-moderate-
kept pace with the rising cost of housing, healthcare, and education              income taxpayers were served
in many areas, and skill levels have not stayed in alignment with                 by expanded Earned Income Tax
                                                                                  Credit (EITC) outreach and free tax
changing industry needs. As a result, more than 30 million people
                                                                                  preparation services in 33 communities
have an income below the federal poverty level, in spite of the                   nationally, returning $269 million in
fact that many are employed, some with two or three jobs.                         total tax returns to communities.

                                                                                • Bank of America Charitable Foundation
                                                                                  donated $500,000 to help launch
                                                                                  the Financial Stability Partnership.
                                In 2007, the United Way Financial Stability
                                Partnership was created to strengthen           • A cohort of local United Ways began
                                communities by tackling the underlying            developing and disseminating learning
                                causes of the financial hardship facing           around workforce development.
                                today’s families. United Way brings together    • With more than $200,000 in financial
                                cross-sector partners to offer tools and          and in-kind support from IBM, United
                                build skills that will empower lower-income       Way identified a benefits calculator
                                individuals and families to achieve financial     product that aligns with the United
                                independence by maximizing their income,          Way Financial Stability Partnership.
                                building savings and gaining assets.

                                United Way announced three
                                goals for the Partnership:
                                • Increase by 50 percent in five years
                                  the number of eligible families (in 400         United Way
                                  areas nationwide) who claim the Earned          Financial Stability Partnership
                                  Income Tax Credit, a federal tax credit
                                  available to low-income workers.
                                                                                  partners included:
                                • Reduce by 25 percent in five years the
                                                                                  Bank of America
                                  number of households without bank
                                  accounts or with such a low credit score        IBM
                                  that they have trouble getting credit.
                                                                                  Nets2Ladders Inc.
                                • Give all United Ways within two years           The National Fund for Workforce Solutions
                                  the technology to enroll eligible               (a coalition including the U.S. Department of
                                  families in benefit programs such               Labor and the Annie E. Casey, Ford, Hitachi,
                                  as the Children’s Health Insurance              Weinberg and Knight foundations)
                                  Program, food stamps, and Medicaid.
                                                                                  The National League of Cities




4   | United Way of America 2007 Annual Report
helping children and youth
achieve their potential
Education is the cornerstone of individual and community
success. It’s essential to getting and keeping a job with a livable
wage and health benefits. It’s fundamental to a community’s
economic prosperity: a well-educated workforce attracts
world-class jobs. And it begins long before school starts.



                         United Way Success By 6™, the nation’s         • The JCPenney Afterschool Fund provided
                         largest network of early childhood               $1.7 million in grants for the 2007-
                         education coalitions, is galvanizing             2008 school year so that 17 United
                         business, government and nonprofit leaders       Ways could provide after-school
                         around three early learning strategies:          scholarships to 4,000 kindergarten
                                                                          through 12th-grade students.
                         • Equip parents, grandparents, and
                           family/friend/neighbor caregivers
                           to encourage early learning.

                         • Increase the quality of care.

                         • Advocate for early learning public policy.

                         2007 results included:
                         • 4,000 business leaders were engaged
                           as early childhood champions.

                         • 500,000 children received books to
                           build language and literary skills.

                         • 6 million parents in 700 markets saw
                           or heard Born Learning public service
                           advertisements, and more than
                           half indicated they would be doing
                           more to incorporate early learning
                                                                          partners included:
                           into everyday activities as a result           The Ad Council
                           of the engagement campaign.
                                                                          The Association of Children’s Museums
                                                                          Dolly Parton’s Imagination Library
                                                                          The National League of Cities




                                                                                  United Way of America 2007 Annual Report |   5
making connections to get
and give help
A partnership between United Way of America and the Alliance   2007 results included:
of Information and Referral Systems, 2-1-1 is an easy-to-      • By year end, 2-1-1 was available
remember telephone number that connects those needing or         to 72 percent of the United States
offering help with the full complement of services available     population in 43 states.
in the community. While the phone number remains the same      • Nearly 10 million inquiries were answered
community to community, the services are reflective of the       by 2-1-1 professionals across the country.
needs and strengths of a given locality. 2-1-1 also provides   • The federal Calling for 2-1-1 Legislation
critical data to support United Way’s impact agendas.            experienced strong bipartisan support
                                                                 and more than 3,300 endorsements
                                                                 from organizations across the U.S.

                                                               • 2-1-1’s essential role in disaster
                                                                 response was demonstrated during
                                                                 and after the Southern California
                                                                 wildfires and the floods in the
                                                                 Northeast and Pacific Northwest.

                                                               • With financial and technical assistance
                                                                 from IBM, 2-1-1 centers began assessing
                                                                 technology and developing a roadmap
                                                                 for an integrated, national 2-1-1 system,
                                                                 accessed via web and telephone.




6   | United Way of America 2007 Annual Report
crisis response and
recovery
United Way of America continued to strengthen its position          2007 results included:
in the disaster arena as the leader in long-term recovery.          • United Way of America staff went on-
Long after the first responders have left, United Way remains,        site to respond to the Virginia Tech
working to rebuild lives and communities day in and day out.          tragedy in spring 2007, rebuilding
                                                                      and enhancing the local United Way’s
                                                                      website to provide an online giving
                                                                      option and setting up long-term recovery
                                                                      efforts with a focus on communitywide
                                                                      mental health programming.
                                                                    • The Major Relief Agency Coalition, co-
                                                                      convened by United Way of America and
                                                                      the American Red Cross, successfully
                                                                      coordinated response efforts of
                                                                      multiple nonprofits during and after
                                                                      the Southern California wildfires.

                                                                    • The final funding phase of the United Way
                                                                      2005 Hurricane Response and Recovery
                                                                      Fund (created in response to Hurricanes
                                                                      Katrina and Rita) was implemented.
  UNITED WAy ALTERNATIvE SPRINg BREAk                                 Phase III grants were directed toward
  The United Way Alternative Spring Break program, which              the major long-term recovery needs of
  was created after Hurricanes Katrina and Rita to enable             the Gulf Coast. Housing, child care and
  young people to assist in long-term recovery, grew from one         mental health initiatives were the focus,
                                                                      with additional funds used to support
  week to four weeks of service in southwest Louisiana.
                                                                      a national initiative called Promoting
                                                                      Partnership Grants. These grants
  2007 results included:
                                                                      were used to encourage and reinforce
  • 379 young volunteers served 27,059 hours of service and           national agencies working together
    paid back $496,000 of Louisiana’s cost share to FEMA.             to solve the very complex issues that
                                                                      continue to hinder progress in the Gulf.
  • After Alternative Spring Break, 84 percent of
    participants said they were more likely to volunteer            • The Promoting Partnership Grant
    in the future, and 73 percent said their experience               Fund, based on the ongoing needs
    gave them new ideas for getting involved and                      identified in the Voices from the Gulf
    making a difference in their communities.                         Coast report published in 2006, was
                                                                      created to provide more than $1.5
  • Young adults made their voices heard in the Gulf Coast            million in funding for 12 partnerships
    by advocating for continued recovery efforts in key media         among Leadership 18 affiliates in the
    including The Chicago Tribune and The Los Angeles Times.          Gulf Coast region. Leadership 18 is
  • FedEx Corp. and GameStop/EB Games sponsored the 2007              a coalition of the country’s largest
    program; FedEx Corp. increased its support of Alternative         and most well-respected human
    Spring Break for 2008 and was joined by Deloitte Services LP.     development nonprofit organizations.


                                                                               United Way of America 2007 Annual Report |   7
str ategic
partners national corporate leadership

United Way of America works with 120 top national and global                                2007 highlights:
corporations to advance the common good in communities                                      • National Corporate Leaders and their
through fundraising, volunteerism and strategic partnerships.                                 employees and retirees invested
                                                                                              more than $1 billion in communities
                                                                                              through United Way, representing one
    United Way                                                                                quarter of the system’s revenue. For
    National Corporate Leadership                                                             the eighth consecutive year, United
                                                                                              Way’s largest supporter was UPS, whose
    participating               Duke Energy                    Nationwide                     foundation, employees and retirees
                                DuPont                         NCR Corporation
    companies                                                                                 contributed $60.8 million to improve
                                Eastman Kodak Company          New York Life
    3M                          Eaton Corporation              Insurance Company              lives and strengthen communities.
    Abbott                      EDS                            Northwest Airlines
    Accenture                   Eli Lilly and Company          Pfizer Inc                   • Xcel Energy received the Spirit
    Aetna Inc.                  Exxon Mobil Corporation        Pitney Bowes Inc.              of America award, United Way’s
    Agilent Technologies, Inc.  FedEx Corporation              Principal Financial Group
    Air Products                                               PricewaterhouseCoopers LLP     highest corporate honor.
                                Fluor Corporation
    Albertson’s, LLC                                           Procter & Gamble
                                FMC Technologies, Inc.                                      • Six corporations received Summit Awards:
    Alcatel-Lucent                                             Prudential Financial, Inc.
                                Ford Motor Company
    Allstate                    GE                             Publix Super Markets, Inc.     Daimler Chrysler, General Mills, Kellogg,
    American Express Company General Mills, Inc.               Qwest Communications           Microsoft, Nationwide and Target.
    Ashland Inc.                                               International, Inc.
                                General Motors Corporation
                                                               Raytheon Company
    AT&T                        Goodyear Tire &                                             • GE/NBC Universal’s “Today Show”
    Automatic Data                                             Rohm and Haas Company
                                Rubber Company                                                anchor Ann Curry bungee-jumped to raise
    Processing, Inc.                                           RR Donnelley
                                Guardsmark, LLC
    Avery Dennison              Harris Bank and BMO            Sara Lee                       funds for United Way. In addition to the
    AXA Equitable               Capital Markets                Shell Oil Company              publicity, NBCU sponsored an online
    Bank of America             The Hershey Company            Sprint
                                                               SUPERVALU INC.
                                                                                              auction from its hit TV shows including
    The Bank of New             Hewlett-Packard Company
    York Mellon                 Hoffman-La Roche Inc.          Target                         “Heroes” and “The Office,” with a portion
    Best Buy Co., Inc.          HSBC – North America           Texas Instruments              of the proceeds benefiting United Way.
    The Boeing Company          IBM Corporation                The Travelers
    Bristol-Myers Squibb        Illinois Tool Works Inc.       Companies, Inc.              • During the United Way campaign in
    Company                                                    United Airlines
    C&S Wholesale Grocers, Inc.
                                ING
                                                               United Technologies
                                                                                              September, Publix featured United Way on
                                Intel Corporation
    Cargill                                                    Corporation                    all plastic and paper grocery bags in every
                                International Paper
    Caterpillar Inc.
                                JCPenney
                                                               UPS                            Publix store – more than 900 locations.
    Ceridian                                                   USAA
                                Johnson & Johnson
    Chevron Corporation                                        U.S. Bank
                                JPMorgan Chase & Co.
    Chrysler LLC                                               Valero Energy Corporation
                                Kellogg Company
    Citigroup Inc.                                             Verizon
                                Kimberly-Clark Corporation
    Citizens Financial                                         Wachovia Corporation
                                Limited Brands
    Group, Inc.                                                Wal-Mart Stores, Inc.
                                Lockheed Martin
    Colgate-Palmolive                                          Walgreen Co.
                                Corporation
    Comcast Corporation                                        WaMu
                                Lowe’s Companies, Inc.
    Costco Wholesale                                           WellPoint, Inc.
                                Macy’s, Inc.
    Deere & Co.                                                Wells Fargo
                                Marriott International, Inc.
    Deloitte & Touche USA LLP                                  Weyerhaeuser Company
                                Merck & Co., Inc.
    Delphi Corporation                                         Whirlpool Corporation
                                Merrill Lynch & Co., Inc.
    Delta Air Lines, Inc.                                      Williams
                                MetLife, Inc.
    Deluxe Corporation                                         Xcel Energy
                                Microsoft Corporation
    Dominion                                                   Xerox Corporation
                                Morgan Stanley
    The Dow Chemical Company
                                Motorola



8    | United Way of America 2007 Annual Report
str ategic
partners national football league

Since 1973, United Way and the National Football League and its
teams have worked together to strengthen America’s communities.
As the most visible and longest running charitable collaboration of
its kind, this partnership is a shining example of the tangible good
                                                                                                                            ®




that can be leveraged when two household icons are harnessed into
a powerful vehicle for real change in communities. In 2007, the NFL
and United Way began leveraging resources and relationships to         2007 highlights:
raise awareness about the importance of youth health and fitness       • The NFL & United Way public service
and to create opportunities for kids to lead healthier lifestyles.       advertising campaign reached 85 percent
                                                                         of American households with ads on
                                                                         CBS, FOX, NBC and ESPN. The campaign
                                                                         represents more than $20 million annually
                                                                         in national airtime furnished by the NFL.

                                                                       • In 22 cities the NFL & United Way
                                                                         Hometown Huddle, a collection of
                                                                         community service events implemented
                                                                         with NFL teams and United Ways
                                                                         on a single day, was focused on
                                                                         youth fitness in projects ranging
                                                                         from teaching the basic concepts of
                                                                         fitness and nutrition to building youth
                                                                         fitness zones and playgrounds.

                                                                       • The NFL & United Way Thanksgiving
                                                                         Day Halftime Show integrated the
                                                                         issue of youth fitness into the on-field
                                                                         messages and featured two minutes
                                                                         of video promoting youth fitness as
                                                                         it was broadcast live to more than 40
                                                                         million television viewers nationwide.




                                                                       Mike McKenzie, New Orleans Saints



                                                                                   United Way of America 2007 Annual Report |
str ategic
partners the ad council

The Ad Council is a nonprofit organization that delivers critical
messages to the American public by marshalling volunteer talent
from the advertising and communications industries, media
time and space, and the resources of the business and nonprofit
sectors. Since 2005 the Ad Council’s distribution of United Way’s
Born Learning public service advertising has garnered more
than $123 million in donated media while exposing millions of
parents and caregivers to simple tips about how to incorporate
learning into their everyday interactions with their children.




  a global united way
  In 2007, United Way of America
  partnered with United Way International
  in an intense visioning and business
  planning process to create a truly global
  United Way network. This work was done in
  partnership with United Way leaders from
  Canada, Columbia, Hungary, Jamaica, Korea,
  South Africa, Venezuela, and the United States and was informed by a host of other valued stakeholders from
  around the world. Their vision was to create a network that leverages learning, resources and reputation that
  will, in turn, help to expand and deepen the capacity of local and national United Ways around the globe.

  In June, the Boards authorized the establishment of a Global Transition Board to implement the vision for
  a global United Way network and system. The Transition Board launched in December and was charged
  with executing a vigorous stakeholder engagement strategy; designing governance elements for the future
  global organization and system; and all due diligence related to incorporating the new global organization.
  The Transition Board was convened by Chair Steve Richardson, Senior Vice President, Organization
  Capabilities and Chief Talent Officer, American Express Company, and included leaders from Australia,
  Canada, China, France, Hungary, India, Indonesia, Jamaica, Uganda, the United States, and Venezuela.




10   | United Way of America 2007 Annual Report
str ategic
partners organized labor

United Way continued to build on its 66-year partnership with                                                                    2007 highlights:
the labor movement. 180 state and local AFL-CIO Community                                                                        • Sam Bianco, president of the Greater
Services Liaisons serve as links between their state federations                                                                   Wilkes-Barre Labor Council (AFL-CIO)
and central labor councils and United Ways in 160 communities                                                                      and a member of UNITE HERE and
                                                                                                                                   the United Mine Workers of America,
across the United States. In addition, 15 local labor agencies
                                                                                                                                   was the 2007 recipient of the Joseph
and four state agencies receive direct United Way support.                                                                         A. Beirne Community Services
                                                                                                                                   Award. The Beirne Award recognizes
                                                                                                                                   union members for outstanding
                                                                                                                                   volunteer service with United Way.
  putting principle into practice: diversity and inclusion
                                                                                                                                 • United Ways played a key role in helping
  United Way of America crafted a toolkit that provides a framework                                                                letter carriers collect 70.7 million pounds
  for analyzing existing diversity and inclusion strategies and                                                                    of food to help feed the needy during
  effective practices both within and outside of the United Way                                                                    the annual one-day National Association
  system. In addition, the 2006/2007 Progress Report for Diversity                                                                 of Letter Carriers National Food Drive.
  and Inclusion captured
  and summarized the
  progress United Way
  of America has made                 United Way
                                 Strategic Alliances and Inclusion
                                 2006-2007 Diversity and Inclusion Progress Report
  toward achieving
  diversity and inclusion.
                                                                   W
                                                                   hen in the course of human events it becomes necessary
                                                                     for one movement to declare its commitment to values
                                                                   that it holds to be fundamental to the success of its work



  This document was
                                                                                  and for the betterment of its communities,
                                                             it is imperative that it openly and visibly embody these values.
                                                       One such value at the heart of the United Way movement is Inclusion.
                                                                 Inclusion is the leveraging of diversity by bringing together


  widely distributed                                              unique individual backgrounds, experiences and thinking
                                                                                          to collectively and more effectively
                                                                                 address the issues facing our communities.



  and was submitted
  as public record at a
  Congressional hearing
  regarding whether or
  not charities are doing
  enough to serve poor
  and diverse populations.

  The Inclusion
  Council for the United Way System was created in 2007
  and worked to engage nine Business Resource Groups
  in a systematic and thorough effort to answer important
  questions related to the critical business and system
  issues around diversity and inclusion. Almost 400
  United Way staff participated in the engagements.




                                                                                                                                           United Way of America 2007 Annual Report |   11
United Way Tocqueville Society


The United Way Tocqueville Society was formed in 1984 to deepen individual
understanding of, commitment to, and support of United Way’s mission and
vision. Comprising individuals who contribute at least $10,000 to a member United
Way, the Tocqueville Society recognizes local philanthropic leaders and volunteer
champions around the world who have devoted time, talent, and funds to create
long-lasting changes by tackling our communities’ most serious issues.

In 2007 the Tocqueville Society recognized the Gates Family—Bill Gates Sr., his late wife
Mary Gates, his wife Mimi Gardner Gates, and his children, Bill Gates Jr., Kristi Blake and
Libby Armintrout—for their leadership and exemplary service to their local community,
the nation and the world. The Gates Family received the United Way Tocqueville Society
Award®, United Way’s highest honor for volunteers. Previous winners include former
Presidents Ronald Reagan and Jimmy Carter, John Glenn, Bob Hope and Henry Ford II.




                                                                                              Bill Gates Sr. (center),
                                                                                              with daughters Kristi
                                                                                              Gates Blake (left) and
                                                                                              Libby Gates Armintrout
                                                                                              (right) at the High
                                                                                              Museum of Art in Atlanta


12   | United Way of America 2007 Annual Report
United Way
Women’s Leadership Council

United Way Women’s Leadership Councils improve people’s lives by mobilizing
the caring power of women in our communities. Members of Women’s Leadership
Councils advance the common good by making a personal financial commitment,
advocating for issues important to them, and taking a leadership role in United Way’s
work. More than 140 communities have Women’s Leadership Councils, with more than
30,000 members reflecting the diversity and inclusiveness of their communities.
The 2007 United Way Summit on Women in Philanthropy was held April 12-14 at the Westin
Riverwalk in San Antonio, Texas. Over two hundred leaders in women’s philanthropy joined
together to be educated on promising practices; engaged with other like-minded women
who share a passion for improving communities; and were empowered to achieve more
through the combined effort of many. The Summit’s speakers included Mavis Leno, Dr. Clair
Gaudiani, Dr. Johnnetta Cole, Ann Compton, Patricia Diaz Dennis and Brian Gallagher.




                                                                                                    Learning Lab participants
                                                                                                    at the 2007 United Way
                                                                                                    Summit on Women in
                                                                                                    Philanthropy in San
                                                                                                    Antonio, Texas


                                                                                  United Way of America 2007 Annual Report |   13
overview of
   financial position
2007 uwa consolidated total                                                           Impact of SFAS No. 158
                                                                                      In September 2006, FASB issued Statement 158, Employers’
revenue (in thousands)                                                                Accounting for Defined Benefit Pension and Other Postretirement
                                                                                      Plans, an amendment of FASB Statement No. 87, 88, 106, and
       Other
      Revenue
                         Membership                                                   132(R). Statement 158 requires organizations, including UWA,
                          Support
       22%                  38%                                                       to recognize the funded status (i.e., the difference between the
                                                                                      fair value of plan assets and the projected benefit obligations)
    Contributions
                      Campaign                                                        of its defined benefit pension and other post retirement plans
        18%            Efforts
                                                                                      on its consolidated balance sheet, with a corresponding
                        22%
                                                                                      adjustment to unrestricted net assets. The adoption of the
                                                   2007 Total                         provisions of Statement 158 resulted in an approximate
                           Membership Support           $ 29,364          37,42%
                           Campaign Efforts                17,366         22.13%      $12,700,000 decrease in UWA’s consolidated net assets.
                           Contributions                  14,224           18.13%
                           Other Revenue                   17,509         22.31%
                           Consolidated                 $ 78,463         100.00%

Membership support payments are received annually from local United Ways for
continued membership in the United Way system. The local United Ways receive
                                                                                      Subsequent Event: Sale of United eWay
the benefits of membership and must comply with standards established by UWA.         United eWay is a wholly owned subsidiary of UWA that combines
Campaign efforts include charitable funds raised from employees and companies
through United Way campaigns at a group of participating companies whose              advanced online giving with integrated pledge processing
employees live and/or work in the New York Tri-State region. The Tri-State regional
office is responsible for collecting and distributing these campaign funds.           and fund distribution services for corporate philanthropic
Contributions are funds donated to support United Way of America’s mission and        programs. On June 30, 2008, eWay sold substantially all of its
its programs that promote Education, Income, and Health. These funds consist of
unrestricted, temporarily restricted, and permanently restricted donations.           assets and transferred certain of its liabilities to Create Hope,
Other revenue includes income generated from the sale of promotional materials,       Inc., a for-profit Delaware corporation. Revenue for eWay was
program service fees, investment activity, conferences, rent and non-professional
service, transaction fees, and miscellaneous activity.                                approximately $6,512,000 for the year ended December 31, 2007.


2007 uwa consolidated total expenses (in thousands)
                Center for
            Community Leadership                                                      Funds Distribution provides support for the processing and distribution of charitable funds raised
                                                                                      through Local United Ways and corporate campaigns.]
Community             8%
  Impact                                                                              Investor Relations provides support for system-wide programs including National Corporate
Leadership                                                                            Leadership, major gifts, Alexis de Tocqueville program, planned giving, and community and public
                                                                                      sector campaigns.
    9%                                Funds
                                   Distribution                                       Community Impact Leadership provides grant distribution services, community building, national
                                                                                      agencies’ support, volunteer development, early childhood development, financial stability, 2-1-1
                                      27%                                             initiative, and Success By 6®.
                                           Public Policy                              Center for Community Leadership provides training programs for volunteers and staff, national
                                                                                      conferences, and organizational learning.
Investor
                                              13%
                                                                                      Public Policy leads UWA’s federal advocacy efforts on behalf of the United Way movement to promote
Relations                                                                             key issues before Congress and the White House. Also, it provides regional and technical consultative
                                                                                                                                support to local United Ways, coordination of national
  9%                                                                                                                            activities at the regional level, and crisis response.
                                                                                        2007 Total                              Brand Leadership manages branding  promotion, public
                Other                               Support       Investor Relations         $ 6,363               8.62%        relations, research, publishing  production of campaign
              Expenses                              Services                                                                    films and materials, production of National Football
                                                                  Comm Impact Leadership     $ 6,389               8.65%
                10%                  Brand           12%          Ctr for Comm Leadership    $ 6,133               8.31%        League television spots, and internal communication.
                                   Leadership                     Public Policy              $ 9,242              12.52%        Support Services are related to fundraising efforts and
                                      12%                         Brand Leadership           $ 8,672              11.75%        the general and administrative activities that support the
                                                                  Other Expense              $ 7,234               9.80%        United Ways’ programs.
                                                                  Funds Distribution         $ 20,826             28.21%        Other expenses provide support for activities which
                                                                  Support Services           $ 8,963              12.14%        contribute to the accomplishment of United Ways’ mission
                                                                  Consolidated               $ 73,822            100.00%        and areas of focus.



14     | United Way of America 2007 Annual Report
United Way of America and Subsidiaries                                        United Way of America and Subsidiaries
     Consolidated Statements of Financial Position                                      Consolidated Statements of Activities
                Period ended December 31, 2007                                               Period ended December 31, 2007
                           (In thousands)                                                                (In thousands)

Assets                                            Consolidated   Revenues                                                           Consolidated
Total current assets                          $       96,608     Public support:
Total noncurrent assets                       $       11 ,230       Membership support, net                                     $           29,364
Total Assets                                  $      107,838        Total campaign efforts                                      $           81,799
                                                                    Less gross amounts raised on behalf of others               $          (64,764)
Liabilities and net assets and equity                               Less allowance for uncollectible pledges                    $              331
Total current liabilities                     $       73,395        Contributions                                               $           14,224
Total noncurrent liabilities                  $       16,774     Total public support                                           $           60,954
                                                                 Other revenue:
Total Liabilities                             $       90,169
                                                                    Promotional material sales                                  $             6,038
                                                                    Program service fees                                        $               689
Net assets and equity:
                                                                    Investment income                                           $             2,121
   Unrestricted                               $        (1,306)
                                                                    Conferences                                                 $             2,851
   Temporarily restricted                     $       18,217
                                                                    Rental and service income                                   $               338
   Permanently restricted                     $           366
                                                                    Transaction fees                                            $            4,626
   Retained earnings - UW Store               $           392
                                                                    Miscellaneous and other                                     $               846
Total net assets and equity                   $       17,669
                                                                 Total other revenue                                            $            17,509
Total liabilities and net assets and equity   $      107,838     Total revenues                                                 $           78,463


                                                                 Expenses
                                                                 Program services:
                                                                    Investor Relations                                          $            6,363
                                                                    Community Impact Leadership                                 $            6,389
                                                                    Center for Community Leadership                             $            6,133
                                                                    Public Policy                                               $            9,242
                                                                    Brand Leadership                                            $            8,672
                                                                    Enterprise Services                                         $             1,514
                                                                    Campaign and public relations                               $            1,493
                                                                 Cost of goods sold                                             $            2,956
                                                                 Selling expenses                                               $             1,271
                                                                 Funds distribution                                             $           20,826
                                                                 Total program costs and cost of revenue                        $           64,859
                                                                 Supporting services:
                                                                    General and administrative                                  $            8,353
                                                                    Fundraising                                                 $              533
                                                                    Provision for income taxes                                  $               77
                                                                 Total supporting services                                      $            8,963
                                                                 Total expenses                                                 $           73,822
                                                                 Adjustments to Net Assets:
                                                                    Postretirement liability                                    $            4,641
                                                                    Change in tax liability                                     $              218
                                                                    Change in pension and postretirement liability              $            4,910
                                                                    Effect of Adopting Statement 158                            $          (12,708)
                                                                 Change in net assets                                           $           (2,939)
                                                                 Net assets and equity beginning of year                        $          20,608
                                                                 Net assets and equity end of period                            $           17,669




                                                                                                          United Way of America 2007 Annual Report |   15
united way of america board of trustees 2007-2008
CHAIR OF THE BOARD                                     Joe Browne, Executive Vice President,
William G. Parrett, Retired Chief Executive Officer,   Communications and Public Affairs,
Deloitte Touche Tohmatsu LLP                           NFL
New York, New York                                     New York, New York
                                                       George Clooney, Board Member
IMMEDIATE PAST CHAIR
                                                       Studio City, California
Rodney E. Slater, Partner,
Patton Boggs LLP                                       Johnnetta B. Cole, Ph.D., Chair,
Washington, D.C.                                       The Johnnetta B. Cole Global Diversity  Inclusion Institute
                                                       Greensboro, North Carolina
SECRETARY OF THE BOARD
                                                       Peggy Conlon, President and Chief Executive Officer,
Linda Chavez-Thompson, Executive                       The Advertising Council, Inc.
Vice President Emerita, AFL-CIO                        New York, New York
Washington, D.C.
                                                       Antonia Cortese, Executive Vice President,
TREASURER AND CHAIR, FINANCE COMMITTEE                 American Federation of Teachers
Phillip Baldwin, President and CEO,                    Washington, D.C.
Southern Bancorp, Inc.
                                                       John J. Dooner, Jr., Chairman and CEO,
Arkadelphia, Arkansas
                                                       McCann WorldGroup
VICE CHAIR OF THE BOARD                                New York, New York
Charlotte Lunsford Berry, Board Member                 Sally Fernandez, President,
Columbia, South Carolina                               Fernandez Group
                                                       Tucson, Arizona
VICE CHAIR OF THE BOARD
Barbara J. Easterling, Secretary-Treasurer,            The Rt. Rev. Carol J. Gallagher
Communications Workers of America                      Newark, New Jersey
Washington, D.C.                                       J. Barry Griswell, Chairman and CEO,
                                                       Principal Financial Group
CHAIR, MEMBERSHIP ACCOUNTABILITY COMMITTEE
                                                       Des Moines, Iowa
Karol DeWulf Nickell,
Des Moines, Iowa                                       Bill Matassoni, Partner,
                                                       Baldwin Bell Green LLC
CHAIR, AUDIT COMMITTEE                                 New York, New York
Roberto E. Santa Maria, Office Managing Partner,       Manuel (Manny) Mirabal, President and CEO,
PricewaterhouseCoopers, LLP                            National Puerto Rican Coalition, Inc.
Hato Rey, Puerto Rico                                  Washington, D.C
CHAIR, EXECUTIVE COMPENSATION COMMITTEE                Joe Solmonese, President,
Ann Stallard, Executive Vice President,                Human Rights Campaign
Graphic Communications Corporation                     Washington, D.C.
Lawrenceville, Georgia                                 Carolyn Williams, Director, Human Services,
AT-LARGE BOARD MEMBERS                                 IBEW, AFL-CIO
                                                       Washington, D.C.
David Barnes, Senior Vice President and CIO,
United Parcel Service (UPS)                            Raul Yzaguirre, Professor of Practice in
Atlanta, Georgia                                       Community Development and Civil Rights,
                                                       Arizona State University
Arthur P. Bellis, Principal,
                                                       Tempe, Arizona
Bellis Enterprises
New York, New York                                     EMERITUS BOARD MEMBER
David J. Bronczek, President and CEO,                  William H. Gates, Sr., Co-Chair,
FedEx Express                                          Bill and Melinda Gates Foundation
Memphis, Tennessee                                     Seattle, Washington



16   | United Way of America 2007 Annual Report
coming in 2008




            United Way of America 2007 Annual Report |   17
United Way of America
701 North Fairfax Street
Alexandria, Virginia 22314-2045
www.liveunited.org




give. advocate. volunteer.
live united                       ™

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Uwa annual report_2007

  • 1. 2007 annual report united way of america
  • 2.
  • 3. table of contents Message from the President and CEO 2 Mission and Vision 3 Promoting Financial Stability and Independence 4 Helping Children and Youth Achieve Their Potential 5 Making Connections to Get and Give Help 6 Crisis Response and Recovery / Alternative Spring Break 7 Strategic Partners 8 Tocqueville Award and Women’s Leadership Council 12 Overview of Financial Position 14 United Way of America Board of Trustees 16
  • 4. October 2008 In communities nationwide, United Way is working to advance the common good by creating opportunities in education, income and health that will lead to a better life for all people. Our partnership with more than 12 million individuals and thousands of businesses and organizations drives the strategies that make this goal possible. Thank you for your continued support. In 2007 United Way of America, together with 1,300 local United Ways, led many efforts to bring positive, sustainable change in communities. We believe the most effective way to make a difference in the lives of others is to act collectively, across sectors and borders. In 2007, United Way made progress in several key areas. We: • Established the United Way Financial Stability Partnership™, expanding Earned Income Tax Credit (EITC) outreach and free tax preparation in 33 communities nationally, serving more than 225,000 low-to-moderate-income taxpayers and returning $269 million in total tax returns to communities • Expanded the Born Learning awareness and engagement campaign to 700 markets and 6 million parents • Celebrated the 10th anniversary of 2-1-1 (the easy-to-remember number that connects people needing or giving help) by growing service to 72 percent of the U.S. population • Increased revenue to more than $4 billion. This annual report includes details about these and other accomplishments, as well as the audited financial statements that ensure accountability of our operations. Thank you for your interest in and continued commitment to our efforts. Sincerely, Brian Gallagher President & Chief Executive Officer 2 | United Way of America 2007 Annual Report
  • 5. mission to improve lives by mobilizing the caring power of communities. vision we build a stronger america by mobilizing our communities to improve people’s lives. United Way is a national network of nearly 1,300 local organizations working to advance the common good by focusing on education, income and health. These are the building blocks for a good life: a quality education that leads to a stable job, enough income to support a family through retirement, and good health. United Way of America is the national organization dedicated to leading the United Way movement. Local United Ways create long-lasting community change by addressing the underlying causes of the most significant local issues. Common focus areas include helping children and youth achieve their potential, promoting financial stability and independence, and improving people’s health. It takes everyone in the community working together to create a brighter future. So we bring together people from all across the community– government, business, faith groups, nonprofits, the labor movement, ordinary citizens–to tackle the issues. Because we all win when a child succeeds in school, when a family becomes financially stable, when people have good health. United Way of America 2007 Annual Report | 3
  • 6. promoting financial stability and independence People throughout our country are facing increasingly complex 2007 results included: and difficult economic and financial challenges. Wages have not • More than 225,000 low-to-moderate- kept pace with the rising cost of housing, healthcare, and education income taxpayers were served in many areas, and skill levels have not stayed in alignment with by expanded Earned Income Tax Credit (EITC) outreach and free tax changing industry needs. As a result, more than 30 million people preparation services in 33 communities have an income below the federal poverty level, in spite of the nationally, returning $269 million in fact that many are employed, some with two or three jobs. total tax returns to communities. • Bank of America Charitable Foundation donated $500,000 to help launch the Financial Stability Partnership. In 2007, the United Way Financial Stability Partnership was created to strengthen • A cohort of local United Ways began communities by tackling the underlying developing and disseminating learning causes of the financial hardship facing around workforce development. today’s families. United Way brings together • With more than $200,000 in financial cross-sector partners to offer tools and and in-kind support from IBM, United build skills that will empower lower-income Way identified a benefits calculator individuals and families to achieve financial product that aligns with the United independence by maximizing their income, Way Financial Stability Partnership. building savings and gaining assets. United Way announced three goals for the Partnership: • Increase by 50 percent in five years the number of eligible families (in 400 United Way areas nationwide) who claim the Earned Financial Stability Partnership Income Tax Credit, a federal tax credit available to low-income workers. partners included: • Reduce by 25 percent in five years the Bank of America number of households without bank accounts or with such a low credit score IBM that they have trouble getting credit. Nets2Ladders Inc. • Give all United Ways within two years The National Fund for Workforce Solutions the technology to enroll eligible (a coalition including the U.S. Department of families in benefit programs such Labor and the Annie E. Casey, Ford, Hitachi, as the Children’s Health Insurance Weinberg and Knight foundations) Program, food stamps, and Medicaid. The National League of Cities 4 | United Way of America 2007 Annual Report
  • 7. helping children and youth achieve their potential Education is the cornerstone of individual and community success. It’s essential to getting and keeping a job with a livable wage and health benefits. It’s fundamental to a community’s economic prosperity: a well-educated workforce attracts world-class jobs. And it begins long before school starts. United Way Success By 6™, the nation’s • The JCPenney Afterschool Fund provided largest network of early childhood $1.7 million in grants for the 2007- education coalitions, is galvanizing 2008 school year so that 17 United business, government and nonprofit leaders Ways could provide after-school around three early learning strategies: scholarships to 4,000 kindergarten through 12th-grade students. • Equip parents, grandparents, and family/friend/neighbor caregivers to encourage early learning. • Increase the quality of care. • Advocate for early learning public policy. 2007 results included: • 4,000 business leaders were engaged as early childhood champions. • 500,000 children received books to build language and literary skills. • 6 million parents in 700 markets saw or heard Born Learning public service advertisements, and more than half indicated they would be doing more to incorporate early learning partners included: into everyday activities as a result The Ad Council of the engagement campaign. The Association of Children’s Museums Dolly Parton’s Imagination Library The National League of Cities United Way of America 2007 Annual Report | 5
  • 8. making connections to get and give help A partnership between United Way of America and the Alliance 2007 results included: of Information and Referral Systems, 2-1-1 is an easy-to- • By year end, 2-1-1 was available remember telephone number that connects those needing or to 72 percent of the United States offering help with the full complement of services available population in 43 states. in the community. While the phone number remains the same • Nearly 10 million inquiries were answered community to community, the services are reflective of the by 2-1-1 professionals across the country. needs and strengths of a given locality. 2-1-1 also provides • The federal Calling for 2-1-1 Legislation critical data to support United Way’s impact agendas. experienced strong bipartisan support and more than 3,300 endorsements from organizations across the U.S. • 2-1-1’s essential role in disaster response was demonstrated during and after the Southern California wildfires and the floods in the Northeast and Pacific Northwest. • With financial and technical assistance from IBM, 2-1-1 centers began assessing technology and developing a roadmap for an integrated, national 2-1-1 system, accessed via web and telephone. 6 | United Way of America 2007 Annual Report
  • 9. crisis response and recovery United Way of America continued to strengthen its position 2007 results included: in the disaster arena as the leader in long-term recovery. • United Way of America staff went on- Long after the first responders have left, United Way remains, site to respond to the Virginia Tech working to rebuild lives and communities day in and day out. tragedy in spring 2007, rebuilding and enhancing the local United Way’s website to provide an online giving option and setting up long-term recovery efforts with a focus on communitywide mental health programming. • The Major Relief Agency Coalition, co- convened by United Way of America and the American Red Cross, successfully coordinated response efforts of multiple nonprofits during and after the Southern California wildfires. • The final funding phase of the United Way 2005 Hurricane Response and Recovery Fund (created in response to Hurricanes Katrina and Rita) was implemented. UNITED WAy ALTERNATIvE SPRINg BREAk Phase III grants were directed toward The United Way Alternative Spring Break program, which the major long-term recovery needs of was created after Hurricanes Katrina and Rita to enable the Gulf Coast. Housing, child care and young people to assist in long-term recovery, grew from one mental health initiatives were the focus, with additional funds used to support week to four weeks of service in southwest Louisiana. a national initiative called Promoting Partnership Grants. These grants 2007 results included: were used to encourage and reinforce • 379 young volunteers served 27,059 hours of service and national agencies working together paid back $496,000 of Louisiana’s cost share to FEMA. to solve the very complex issues that continue to hinder progress in the Gulf. • After Alternative Spring Break, 84 percent of participants said they were more likely to volunteer • The Promoting Partnership Grant in the future, and 73 percent said their experience Fund, based on the ongoing needs gave them new ideas for getting involved and identified in the Voices from the Gulf making a difference in their communities. Coast report published in 2006, was created to provide more than $1.5 • Young adults made their voices heard in the Gulf Coast million in funding for 12 partnerships by advocating for continued recovery efforts in key media among Leadership 18 affiliates in the including The Chicago Tribune and The Los Angeles Times. Gulf Coast region. Leadership 18 is • FedEx Corp. and GameStop/EB Games sponsored the 2007 a coalition of the country’s largest program; FedEx Corp. increased its support of Alternative and most well-respected human Spring Break for 2008 and was joined by Deloitte Services LP. development nonprofit organizations. United Way of America 2007 Annual Report | 7
  • 10. str ategic partners national corporate leadership United Way of America works with 120 top national and global 2007 highlights: corporations to advance the common good in communities • National Corporate Leaders and their through fundraising, volunteerism and strategic partnerships. employees and retirees invested more than $1 billion in communities through United Way, representing one United Way quarter of the system’s revenue. For National Corporate Leadership the eighth consecutive year, United Way’s largest supporter was UPS, whose participating Duke Energy Nationwide foundation, employees and retirees DuPont NCR Corporation companies contributed $60.8 million to improve Eastman Kodak Company New York Life 3M Eaton Corporation Insurance Company lives and strengthen communities. Abbott EDS Northwest Airlines Accenture Eli Lilly and Company Pfizer Inc • Xcel Energy received the Spirit Aetna Inc. Exxon Mobil Corporation Pitney Bowes Inc. of America award, United Way’s Agilent Technologies, Inc. FedEx Corporation Principal Financial Group Air Products PricewaterhouseCoopers LLP highest corporate honor. Fluor Corporation Albertson’s, LLC Procter & Gamble FMC Technologies, Inc. • Six corporations received Summit Awards: Alcatel-Lucent Prudential Financial, Inc. Ford Motor Company Allstate GE Publix Super Markets, Inc. Daimler Chrysler, General Mills, Kellogg, American Express Company General Mills, Inc. Qwest Communications Microsoft, Nationwide and Target. Ashland Inc. International, Inc. General Motors Corporation Raytheon Company AT&T Goodyear Tire & • GE/NBC Universal’s “Today Show” Automatic Data Rohm and Haas Company Rubber Company anchor Ann Curry bungee-jumped to raise Processing, Inc. RR Donnelley Guardsmark, LLC Avery Dennison Harris Bank and BMO Sara Lee funds for United Way. In addition to the AXA Equitable Capital Markets Shell Oil Company publicity, NBCU sponsored an online Bank of America The Hershey Company Sprint SUPERVALU INC. auction from its hit TV shows including The Bank of New Hewlett-Packard Company York Mellon Hoffman-La Roche Inc. Target “Heroes” and “The Office,” with a portion Best Buy Co., Inc. HSBC – North America Texas Instruments of the proceeds benefiting United Way. The Boeing Company IBM Corporation The Travelers Bristol-Myers Squibb Illinois Tool Works Inc. Companies, Inc. • During the United Way campaign in Company United Airlines C&S Wholesale Grocers, Inc. ING United Technologies September, Publix featured United Way on Intel Corporation Cargill Corporation all plastic and paper grocery bags in every International Paper Caterpillar Inc. JCPenney UPS Publix store – more than 900 locations. Ceridian USAA Johnson & Johnson Chevron Corporation U.S. Bank JPMorgan Chase & Co. Chrysler LLC Valero Energy Corporation Kellogg Company Citigroup Inc. Verizon Kimberly-Clark Corporation Citizens Financial Wachovia Corporation Limited Brands Group, Inc. Wal-Mart Stores, Inc. Lockheed Martin Colgate-Palmolive Walgreen Co. Corporation Comcast Corporation WaMu Lowe’s Companies, Inc. Costco Wholesale WellPoint, Inc. Macy’s, Inc. Deere & Co. Wells Fargo Marriott International, Inc. Deloitte & Touche USA LLP Weyerhaeuser Company Merck & Co., Inc. Delphi Corporation Whirlpool Corporation Merrill Lynch & Co., Inc. Delta Air Lines, Inc. Williams MetLife, Inc. Deluxe Corporation Xcel Energy Microsoft Corporation Dominion Xerox Corporation Morgan Stanley The Dow Chemical Company Motorola 8 | United Way of America 2007 Annual Report
  • 11. str ategic partners national football league Since 1973, United Way and the National Football League and its teams have worked together to strengthen America’s communities. As the most visible and longest running charitable collaboration of its kind, this partnership is a shining example of the tangible good ® that can be leveraged when two household icons are harnessed into a powerful vehicle for real change in communities. In 2007, the NFL and United Way began leveraging resources and relationships to 2007 highlights: raise awareness about the importance of youth health and fitness • The NFL & United Way public service and to create opportunities for kids to lead healthier lifestyles. advertising campaign reached 85 percent of American households with ads on CBS, FOX, NBC and ESPN. The campaign represents more than $20 million annually in national airtime furnished by the NFL. • In 22 cities the NFL & United Way Hometown Huddle, a collection of community service events implemented with NFL teams and United Ways on a single day, was focused on youth fitness in projects ranging from teaching the basic concepts of fitness and nutrition to building youth fitness zones and playgrounds. • The NFL & United Way Thanksgiving Day Halftime Show integrated the issue of youth fitness into the on-field messages and featured two minutes of video promoting youth fitness as it was broadcast live to more than 40 million television viewers nationwide. Mike McKenzie, New Orleans Saints United Way of America 2007 Annual Report |
  • 12. str ategic partners the ad council The Ad Council is a nonprofit organization that delivers critical messages to the American public by marshalling volunteer talent from the advertising and communications industries, media time and space, and the resources of the business and nonprofit sectors. Since 2005 the Ad Council’s distribution of United Way’s Born Learning public service advertising has garnered more than $123 million in donated media while exposing millions of parents and caregivers to simple tips about how to incorporate learning into their everyday interactions with their children. a global united way In 2007, United Way of America partnered with United Way International in an intense visioning and business planning process to create a truly global United Way network. This work was done in partnership with United Way leaders from Canada, Columbia, Hungary, Jamaica, Korea, South Africa, Venezuela, and the United States and was informed by a host of other valued stakeholders from around the world. Their vision was to create a network that leverages learning, resources and reputation that will, in turn, help to expand and deepen the capacity of local and national United Ways around the globe. In June, the Boards authorized the establishment of a Global Transition Board to implement the vision for a global United Way network and system. The Transition Board launched in December and was charged with executing a vigorous stakeholder engagement strategy; designing governance elements for the future global organization and system; and all due diligence related to incorporating the new global organization. The Transition Board was convened by Chair Steve Richardson, Senior Vice President, Organization Capabilities and Chief Talent Officer, American Express Company, and included leaders from Australia, Canada, China, France, Hungary, India, Indonesia, Jamaica, Uganda, the United States, and Venezuela. 10 | United Way of America 2007 Annual Report
  • 13. str ategic partners organized labor United Way continued to build on its 66-year partnership with 2007 highlights: the labor movement. 180 state and local AFL-CIO Community • Sam Bianco, president of the Greater Services Liaisons serve as links between their state federations Wilkes-Barre Labor Council (AFL-CIO) and central labor councils and United Ways in 160 communities and a member of UNITE HERE and the United Mine Workers of America, across the United States. In addition, 15 local labor agencies was the 2007 recipient of the Joseph and four state agencies receive direct United Way support. A. Beirne Community Services Award. The Beirne Award recognizes union members for outstanding volunteer service with United Way. putting principle into practice: diversity and inclusion • United Ways played a key role in helping United Way of America crafted a toolkit that provides a framework letter carriers collect 70.7 million pounds for analyzing existing diversity and inclusion strategies and of food to help feed the needy during effective practices both within and outside of the United Way the annual one-day National Association system. In addition, the 2006/2007 Progress Report for Diversity of Letter Carriers National Food Drive. and Inclusion captured and summarized the progress United Way of America has made United Way Strategic Alliances and Inclusion 2006-2007 Diversity and Inclusion Progress Report toward achieving diversity and inclusion. W hen in the course of human events it becomes necessary for one movement to declare its commitment to values that it holds to be fundamental to the success of its work This document was and for the betterment of its communities, it is imperative that it openly and visibly embody these values. One such value at the heart of the United Way movement is Inclusion. Inclusion is the leveraging of diversity by bringing together widely distributed unique individual backgrounds, experiences and thinking to collectively and more effectively address the issues facing our communities. and was submitted as public record at a Congressional hearing regarding whether or not charities are doing enough to serve poor and diverse populations. The Inclusion Council for the United Way System was created in 2007 and worked to engage nine Business Resource Groups in a systematic and thorough effort to answer important questions related to the critical business and system issues around diversity and inclusion. Almost 400 United Way staff participated in the engagements. United Way of America 2007 Annual Report | 11
  • 14. United Way Tocqueville Society The United Way Tocqueville Society was formed in 1984 to deepen individual understanding of, commitment to, and support of United Way’s mission and vision. Comprising individuals who contribute at least $10,000 to a member United Way, the Tocqueville Society recognizes local philanthropic leaders and volunteer champions around the world who have devoted time, talent, and funds to create long-lasting changes by tackling our communities’ most serious issues. In 2007 the Tocqueville Society recognized the Gates Family—Bill Gates Sr., his late wife Mary Gates, his wife Mimi Gardner Gates, and his children, Bill Gates Jr., Kristi Blake and Libby Armintrout—for their leadership and exemplary service to their local community, the nation and the world. The Gates Family received the United Way Tocqueville Society Award®, United Way’s highest honor for volunteers. Previous winners include former Presidents Ronald Reagan and Jimmy Carter, John Glenn, Bob Hope and Henry Ford II. Bill Gates Sr. (center), with daughters Kristi Gates Blake (left) and Libby Gates Armintrout (right) at the High Museum of Art in Atlanta 12 | United Way of America 2007 Annual Report
  • 15. United Way Women’s Leadership Council United Way Women’s Leadership Councils improve people’s lives by mobilizing the caring power of women in our communities. Members of Women’s Leadership Councils advance the common good by making a personal financial commitment, advocating for issues important to them, and taking a leadership role in United Way’s work. More than 140 communities have Women’s Leadership Councils, with more than 30,000 members reflecting the diversity and inclusiveness of their communities. The 2007 United Way Summit on Women in Philanthropy was held April 12-14 at the Westin Riverwalk in San Antonio, Texas. Over two hundred leaders in women’s philanthropy joined together to be educated on promising practices; engaged with other like-minded women who share a passion for improving communities; and were empowered to achieve more through the combined effort of many. The Summit’s speakers included Mavis Leno, Dr. Clair Gaudiani, Dr. Johnnetta Cole, Ann Compton, Patricia Diaz Dennis and Brian Gallagher. Learning Lab participants at the 2007 United Way Summit on Women in Philanthropy in San Antonio, Texas United Way of America 2007 Annual Report | 13
  • 16. overview of financial position 2007 uwa consolidated total Impact of SFAS No. 158 In September 2006, FASB issued Statement 158, Employers’ revenue (in thousands) Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statement No. 87, 88, 106, and Other Revenue Membership 132(R). Statement 158 requires organizations, including UWA, Support 22% 38% to recognize the funded status (i.e., the difference between the fair value of plan assets and the projected benefit obligations) Contributions Campaign of its defined benefit pension and other post retirement plans 18% Efforts on its consolidated balance sheet, with a corresponding 22% adjustment to unrestricted net assets. The adoption of the 2007 Total provisions of Statement 158 resulted in an approximate Membership Support $ 29,364 37,42% Campaign Efforts 17,366 22.13% $12,700,000 decrease in UWA’s consolidated net assets. Contributions 14,224 18.13% Other Revenue 17,509 22.31% Consolidated $ 78,463 100.00% Membership support payments are received annually from local United Ways for continued membership in the United Way system. The local United Ways receive Subsequent Event: Sale of United eWay the benefits of membership and must comply with standards established by UWA. United eWay is a wholly owned subsidiary of UWA that combines Campaign efforts include charitable funds raised from employees and companies through United Way campaigns at a group of participating companies whose advanced online giving with integrated pledge processing employees live and/or work in the New York Tri-State region. The Tri-State regional office is responsible for collecting and distributing these campaign funds. and fund distribution services for corporate philanthropic Contributions are funds donated to support United Way of America’s mission and programs. On June 30, 2008, eWay sold substantially all of its its programs that promote Education, Income, and Health. These funds consist of unrestricted, temporarily restricted, and permanently restricted donations. assets and transferred certain of its liabilities to Create Hope, Other revenue includes income generated from the sale of promotional materials, Inc., a for-profit Delaware corporation. Revenue for eWay was program service fees, investment activity, conferences, rent and non-professional service, transaction fees, and miscellaneous activity. approximately $6,512,000 for the year ended December 31, 2007. 2007 uwa consolidated total expenses (in thousands) Center for Community Leadership Funds Distribution provides support for the processing and distribution of charitable funds raised through Local United Ways and corporate campaigns.] Community 8% Impact Investor Relations provides support for system-wide programs including National Corporate Leadership Leadership, major gifts, Alexis de Tocqueville program, planned giving, and community and public sector campaigns. 9% Funds Distribution Community Impact Leadership provides grant distribution services, community building, national agencies’ support, volunteer development, early childhood development, financial stability, 2-1-1 27% initiative, and Success By 6®. Public Policy Center for Community Leadership provides training programs for volunteers and staff, national conferences, and organizational learning. Investor 13% Public Policy leads UWA’s federal advocacy efforts on behalf of the United Way movement to promote Relations key issues before Congress and the White House. Also, it provides regional and technical consultative support to local United Ways, coordination of national 9% activities at the regional level, and crisis response. 2007 Total Brand Leadership manages branding promotion, public Other Support Investor Relations $ 6,363 8.62% relations, research, publishing production of campaign Expenses Services films and materials, production of National Football Comm Impact Leadership $ 6,389 8.65% 10% Brand 12% Ctr for Comm Leadership $ 6,133 8.31% League television spots, and internal communication. Leadership Public Policy $ 9,242 12.52% Support Services are related to fundraising efforts and 12% Brand Leadership $ 8,672 11.75% the general and administrative activities that support the Other Expense $ 7,234 9.80% United Ways’ programs. Funds Distribution $ 20,826 28.21% Other expenses provide support for activities which Support Services $ 8,963 12.14% contribute to the accomplishment of United Ways’ mission Consolidated $ 73,822 100.00% and areas of focus. 14 | United Way of America 2007 Annual Report
  • 17. United Way of America and Subsidiaries United Way of America and Subsidiaries Consolidated Statements of Financial Position Consolidated Statements of Activities Period ended December 31, 2007 Period ended December 31, 2007 (In thousands) (In thousands) Assets Consolidated Revenues Consolidated Total current assets $ 96,608 Public support: Total noncurrent assets $ 11 ,230 Membership support, net $ 29,364 Total Assets $ 107,838 Total campaign efforts $ 81,799 Less gross amounts raised on behalf of others $ (64,764) Liabilities and net assets and equity Less allowance for uncollectible pledges $ 331 Total current liabilities $ 73,395 Contributions $ 14,224 Total noncurrent liabilities $ 16,774 Total public support $ 60,954 Other revenue: Total Liabilities $ 90,169 Promotional material sales $ 6,038 Program service fees $ 689 Net assets and equity: Investment income $ 2,121 Unrestricted $ (1,306) Conferences $ 2,851 Temporarily restricted $ 18,217 Rental and service income $ 338 Permanently restricted $ 366 Transaction fees $ 4,626 Retained earnings - UW Store $ 392 Miscellaneous and other $ 846 Total net assets and equity $ 17,669 Total other revenue $ 17,509 Total liabilities and net assets and equity $ 107,838 Total revenues $ 78,463 Expenses Program services: Investor Relations $ 6,363 Community Impact Leadership $ 6,389 Center for Community Leadership $ 6,133 Public Policy $ 9,242 Brand Leadership $ 8,672 Enterprise Services $ 1,514 Campaign and public relations $ 1,493 Cost of goods sold $ 2,956 Selling expenses $ 1,271 Funds distribution $ 20,826 Total program costs and cost of revenue $ 64,859 Supporting services: General and administrative $ 8,353 Fundraising $ 533 Provision for income taxes $ 77 Total supporting services $ 8,963 Total expenses $ 73,822 Adjustments to Net Assets: Postretirement liability $ 4,641 Change in tax liability $ 218 Change in pension and postretirement liability $ 4,910 Effect of Adopting Statement 158 $ (12,708) Change in net assets $ (2,939) Net assets and equity beginning of year $ 20,608 Net assets and equity end of period $ 17,669 United Way of America 2007 Annual Report | 15
  • 18. united way of america board of trustees 2007-2008 CHAIR OF THE BOARD Joe Browne, Executive Vice President, William G. Parrett, Retired Chief Executive Officer, Communications and Public Affairs, Deloitte Touche Tohmatsu LLP NFL New York, New York New York, New York George Clooney, Board Member IMMEDIATE PAST CHAIR Studio City, California Rodney E. Slater, Partner, Patton Boggs LLP Johnnetta B. Cole, Ph.D., Chair, Washington, D.C. The Johnnetta B. Cole Global Diversity Inclusion Institute Greensboro, North Carolina SECRETARY OF THE BOARD Peggy Conlon, President and Chief Executive Officer, Linda Chavez-Thompson, Executive The Advertising Council, Inc. Vice President Emerita, AFL-CIO New York, New York Washington, D.C. Antonia Cortese, Executive Vice President, TREASURER AND CHAIR, FINANCE COMMITTEE American Federation of Teachers Phillip Baldwin, President and CEO, Washington, D.C. Southern Bancorp, Inc. John J. Dooner, Jr., Chairman and CEO, Arkadelphia, Arkansas McCann WorldGroup VICE CHAIR OF THE BOARD New York, New York Charlotte Lunsford Berry, Board Member Sally Fernandez, President, Columbia, South Carolina Fernandez Group Tucson, Arizona VICE CHAIR OF THE BOARD Barbara J. Easterling, Secretary-Treasurer, The Rt. Rev. Carol J. Gallagher Communications Workers of America Newark, New Jersey Washington, D.C. J. Barry Griswell, Chairman and CEO, Principal Financial Group CHAIR, MEMBERSHIP ACCOUNTABILITY COMMITTEE Des Moines, Iowa Karol DeWulf Nickell, Des Moines, Iowa Bill Matassoni, Partner, Baldwin Bell Green LLC CHAIR, AUDIT COMMITTEE New York, New York Roberto E. Santa Maria, Office Managing Partner, Manuel (Manny) Mirabal, President and CEO, PricewaterhouseCoopers, LLP National Puerto Rican Coalition, Inc. Hato Rey, Puerto Rico Washington, D.C CHAIR, EXECUTIVE COMPENSATION COMMITTEE Joe Solmonese, President, Ann Stallard, Executive Vice President, Human Rights Campaign Graphic Communications Corporation Washington, D.C. Lawrenceville, Georgia Carolyn Williams, Director, Human Services, AT-LARGE BOARD MEMBERS IBEW, AFL-CIO Washington, D.C. David Barnes, Senior Vice President and CIO, United Parcel Service (UPS) Raul Yzaguirre, Professor of Practice in Atlanta, Georgia Community Development and Civil Rights, Arizona State University Arthur P. Bellis, Principal, Tempe, Arizona Bellis Enterprises New York, New York EMERITUS BOARD MEMBER David J. Bronczek, President and CEO, William H. Gates, Sr., Co-Chair, FedEx Express Bill and Melinda Gates Foundation Memphis, Tennessee Seattle, Washington 16 | United Way of America 2007 Annual Report
  • 19. coming in 2008 United Way of America 2007 Annual Report | 17
  • 20. United Way of America 701 North Fairfax Street Alexandria, Virginia 22314-2045 www.liveunited.org give. advocate. volunteer. live united ™