Why People Give (and Don’t Give) to United Way
Over the past thirty-five years of conducting research with United Way donors, we’ve learned a lot about why people choose to give, or not to give, to their local United Way. Here are some common reasons people give or don’t give to United Way:
WHY PEOPLE GIVE
Obligation. Every United Way says something like “We don’t condone coercion. Let us know if you feel forced to give.” But the reality is that some workplaces have an expectation that employees should give to United Way, even if it is not “required.” Several years ago, I received a five-page hand-written letter from a United Way donor which explained how she felt she had no choice but to give to United Way in order to move up in the company. Our donor research has found that about 8% of donors, on average, report feeling pressure to give.
Raffles and Prizes. Some United Ways use raffles and prize giveaways in order to entice people to give. I ask United Ways that offer raffles and prizes if it is worth doing and I get the same answer every time “It brings in new donors.” Often, these raffles and prizes require someone to be a new donor or to increase the amount of their contribution compared to previous years. What United Ways that offer raffles and prizes are often unable to say is if these donors continue to support United Way or they only give once for the raffle or prize.
Habit. Many people give to United Way because they have always given to United Way. Our donor research has found that approximately 65% of United Way donors, on average, have given to their United Way for 15 years or more. Contrast this with less than 10% of donors, on average, who have given less than 5 years.
Understanding. Most (but not all) United Way donors believe they understand what their contribution to United Way accomplishes. Our donor research has found donors’ understanding of United Way is limited – they are only able to name a couple partner agencies that are funded, and/or one or two programs or direct services operated by United Way. Issue focused United Ways are successful, in part, because they focus on addressing just one issue which is easy for donors to understand and remember.
WHY PEOPLE DON’T GIVE
Uncertainty. The most common reason people have listed for not supporting their United Way is that they do not understand why they should support their United Way. Although nearly everyone has heard of United Way (approximately 90% of non-donors), the vast majority have no idea what United Way does (approximately 66% of non-donors).
Not Asked. Another common reason people give for not supporting United Way is they were not asked. With the decline of the workplace campaign and aging donors retiring from the workplace, fewer people are exposed to an “ask” from United Way. The sustainability of United Way will depend on diversified resources beyond the workplace campaign. It is nearly impossible, however, for a United Way to diversify resources if their purpose is serving as a pass-through fundraiser for local partner agencies. This is a topic we explore in-depth during our New Directions Board and Staff Retreat.
Support Directly. People who believe their United Way just funds local partner agencies/programs often say they already support one or more of those partner agencies/programs directly and do not see a benefit to channeling their donation through United Way.
Unable. Typically under 20% of people say they do not have the ability to make a financial contribution to United Way.
NEXT STEPS
If your United Way is relying on obligation, raffles and prizes, and/or habit for people supporting your United Way, your next step needs to be building understanding about your United Way. Whether you adopt an issue focus or use other methods to increase understanding, building understanding is essential for your United Way to remain sustainable in the future.
If your United Way wants to raise more money, then explore how your United Way can diversify your resources by participating in our New Directions Board and Staff Retreat.