Let me clear the smoke a bit on how the system works.
Lets use some simple numbers so we can understand.
Say our united way takes in 500,000 dollars and has 100 agencies that they support, all equally ( I know in reality that is not so, but for the sake of discussion.....)
That is $5,000 each.
Dannyboy contributes $2,500 per year to the UW. That is 5% of the budget.
Going through the UW, if I want all the $2,500 to go to the fire department, $5,000 is still all they get, unless others designate more than $5,000 in total to them. Uderstand also that they will get your donation less the 16%, or $400. So in reality, even though you gave 2500, and wanted the fire department to get all of it, they would in reality get 2100 of your donation.
Not the interesting part. Take my 5% away from the united way and reduce the total to the fire department by 5% or $250. So now they are getting $4,750 from the united way. I, instead of going through the UW give it directly to the fire department. Now they have my $2,500 plus the $4,750 from the UW making a total of $7,250.
Now this example is not taking into account the 16% that comes off the top, in this case they would have to raise 580,000 to distribute $500,000.
So if you are wanting all you money to go directly to a specific organization, how do you figure it helps them more letting the UW handle the money?
Now there are some agencies that do not have a 501C3 standing and money given to them is not tax deductable, where giving it to the US would make it so. But out side of that one blip, I dont see how, IF you are going to give anyway to a cause, whey letting the UW handle it and take 16% of your donation off the top.
But on the other hand, the UW is a great money raiser from people that would not normally give to any charity.
CLear as mud?
d And they think I dont understand the numbers!
(Message edited by dannyboy on October 01, 2003)