A Model of Efficiency
United Way of Ohio Valley has a very low fundraising and administrative overhead of 16.53 percent, far lower than the 35 percent recognized by the Better Business Bureau’s Wise Giving Alliance, a national nonprofit “watchdog” group, or the 25 percent recognized by the United States Office of Personnel Management, or the 20 percent recognized by charity examination groups.
Management and Fundraising Costs Per Dollar
Local People Helping Local People
United Way of the Ohio Valley Expenses
(Based Upon 2015 Campaign Results and Audit Presented August 2016)
As is the case for all non-profits, United Way of the Ohio Valley allocates expenses to three categories – (1) management and general, (2) fundraising and (3) program services. This is in accordance with the recommended standards for non-profit accounting. We follow the American Institute of Certified Public Accountants' definitions of these categories. Numbers reflect a 3 year average.
Definition of Terms
American Institute of Certified Public Accountants definition of the three categories:
Management and general are activities that are not identifiable with a single program, fundraising activity, or membership-development activity but are indispensable to the conduct of those activities and to an organization’s existence. They include oversight, business management, general record keeping, budgeting, financing, and all management and administration except for direct conduct of program services or fundraising activities.
Fundraising activities involve inducing potential donors to contribute money, securities, services, materials, facilities, other assets, or time. They include publicizing and conducting fundraising campaigns; maintaining donor mailing lists; conducting special fund-raising events; preparing and distributing fundraising manuals, instructions, and other materials; and conducting other activities involved with soliciting contributions from individuals, foundations, governments, and others.
Program services represent the activities that result in goods and services being distributed to beneficiaries, customers, or members that fulfill the purposes or mission for which the organization exists.
In-house program services are representative of the Emergency Food and Shelter Program; Born Learning; Regional Health Coalition; and Information and Referral programs administered by office staff.