United Way of King County
Standards Not Met
- 6
Standards Not Met
Standards Legend
- Meets Standards
- Standards Not Met
- Did Not Disclose
- Review In Progress
- Unable to Verify
Standards For Charity Accountability
Governance
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Board Oversight
Oversight of Operations and Staff: Standard 1
Description
Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fundraising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.The organization meets this standard.
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Board Size
Number of Board Members: Standard 2
Description
Soliciting organizations shall have a board of directors with a minimum of five voting members.The organization meets this standard.
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Board Meetings
Frequency and Attendance of Board Meetings: Standard 3
Description
An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.The organization meets this standard.
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Board Compensation
Compensated Board Members: Standard 4
Description
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.The organization meets this standard.
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Conflict of Interest
Conflict of Interest: Standard 5
Description
No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.The organization meets this standard.
Measuring Effectiveness
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Effectiveness Policy
Board Policy on Effectiveness: Standard 6
Description
Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.United Way of King County does not meet this standard because:Its board of directors does not have a policy to document its process for and frequency of strategic planning.
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Effectiveness Report
Board Approval of Written Report on Effectiveness: Standard 7
Description
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.The organization meets this standard.
Finances
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Program Expenses
Program Service Expense Ratio: Standard 8
Description
Spend at least 65% of its total expenses on program activities.The organization meets this standard.
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Fundraising Expenses
Fundraising Expense Ratio: Standard 9
Description
Spending should be no more than 35% of related contributions on fundraising. Related contributions include donations, legacies, and other gifts received as a result of fundraising efforts.The organization meets this standard.
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Accumulating Funds
Ending Net Assets: Standard 10
Description
Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.The organization meets this standard.
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Audit Report
Financial Statements: Standard 11
Description
Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $1 million, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $1 million, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.The organization meets this standard.
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Detailed Expense Breakdown
Detailed Functional Breakdown of Expenses: Standard 12
Description
Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fundraising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.The organization meets this standard.
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Accurate Expense Reporting
Accuracy of Expenses in Financial Statements: Standard 13
Description
Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fundraising expenses or otherwise understate the amount a charity spends on fundraising, and/or overstate the amount it spends on programs will not meet this standard.The organization meets this standard.
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Budget Plan
Budget: Standard 14
Description
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fundraising, and administration.The organization meets this standard.
Fundraising & Info
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Truthful Materials
Misleading Appeals: Standard 15
Description
Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.The organization meets this standard.
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Annual Report
Annual Report: Standard 16
Description
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fundraising and administrative categories as in the financial statements, and (iii) ending net assets.The organization meets this standard.
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Website Disclosures
Web Site Disclosures: Standard 17
Description
Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.The organization meets this standard.
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Donor Privacy
Privacy for Written Appeals & Internet Privacy: Standard 18
Description
Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.The organization meets this standard.
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Cause Marketing Disclosures
Cause Related Marketing: Standard 19
Description
Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).The organization meets this standard.
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Complaints
Complaints: Standard 20
Description
Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fundraising practices, privacy policy violations and/or other issues.The organization meets this standard.
Conclusion
United Way of King County does not meet the following 1 Standards for Charity Accountability:
Standard 6: Board Policy on Effectiveness - Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.
United Way of King County does not meet this standard because:Its board of directors does not have a policy to document its process for and frequency of strategic planning.
United Way of King County meets the remaining 19 Standards for Charity Accountability.
Purpose
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Year, State Incorporated
1952, WA
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Stated Purpose
to bring caring people together to give, volunteer, and take action to help people in need and solve our community’s toughest challenges.
Programs
As a community-focused nonprofit organization, United Way ofKing County has identified three areas to focus their energy, resources andcapabilities—homelessness, student graduation rates and poverty.Ending Homelessness - Homelessness is a crisis in ourcommunity, with more than 12,000 people on any given night living on thestreets, in their cars or in emergency shelters. United Way of King Countyfocuses on income and housing to make the most impact on the county-widecrisis. Black, Indigenous and people of color are disproportionatelyrepresented. To counteract racial inequities and fight the root causes ofhomelessness, United Way focuses on, and invests in, partnering withorganizations and service providers who address racial disparities and equitygaps as they support people experiencing homelessness.- Home Base focuses on helping people avoid eviction. The program works with both tenants and landlords to find workable solutions like negotiating a payment standard based on Department of Housing and Urban Development rent and income limit guidelines for King County, improving rental assistance processes to get more money out the door and advocating for eviction moratoriums and additional Federal rental assistance. Home Base also fights for tenants’ rights that make unfair and race-based evictions harder, provide tenants representation in eviction court and provide other eviction protections to renters.- Streets to Home works with people experiencing homelessness to set them on a path of upward mobility by quickly getting them into housing and connecting them with employment so they can afford to stay there. A key component of this work is recognizing and addressing racial inequities. Streets to Home partners with 12 agencies with a track record of working with BIPOC individuals and families experiencing homelessness and joblessness to connect them with housing and jobs.Helping Students Graduate– United Way of King County believesthat income, ZIP code and race shouldn’t influence success in school and thus helpsstudents graduate because education is an avenue to avoid or escape poverty.- ParentChild helps children and families prepare for kindergarten—and long-term learning success. The ParentChild program closes the kindergarten preparation gap by supporting parents during the crucial early years of their kids’ development. Families have twice-weekly visits with trained coaches, known as home visitors, of the same language and cultural background. ParentChild graduates have 30% higher high school graduation rates than their peers.- Reconnecting Youth is a coordinated, community-wide approach to helping young people complete their education and achieve viable career paths. To help BIPOC students succeed, Reconnecting Youth offers 1:1 mentoring, educational coaching and career navigation through flexible schedules and targeted support.- Bridge to Finish helps students get the services they need to stay in school and complete their education. Nearly half of our area community college students are people of color. Community colleges are an affordable way for people to get a higher education, yet fewer than half of community college students earn a credential. Bridge to Finish has 10 locations on community and technical college campuses throughout King County that offer services including one-time grants, housing support, tax help, food pantries and financial coaching.Breaking the Cycle of Poverty – The wealth gap inKing County is significant and disproportionately impacts people of color. UnitedWay invests in strategies and agencies that specifically meet the needs of communitiesof color, improve outreach to those communities and reduce barriers toaccessing support.- Fuel Your Future partners with DoorDash and Safeway to provide hunger relief to tens of thousands of neighbors each week. This is a free service for the household and it eliminates access barriers during the pandemic. Further, the DoorDash drivers get paid for their delivery, making it a win-win outcome.- Free Tax Preparation Campaign offers IRS-certified volunteers offer free tax services to help people keep more of what they’ve earned. Services are offered in multiple languages to maximize accessibility.COVID-19 Response - As a result of the COVID-19 pandemic,the United Way of King County received significant government funding to accelerateaid in the relief efforts thus far funded by private donations. While UnitedWay continued to fund and operate its core programs designed to build acommunity where people have homes, students graduate and families arefinancially stable, it also rapidly brought new strategies to meet growingcommunity needs. As a result, United Wayhas been able to provide significant additional resources for rental and foodassistance particularly for communities of color who, because of historical inequities,are over-represented in poverty and homelessness.
For the year ended June 30, 2021, United Way of King County program expenses were:
| Funds awarded and designated | $88,105,904 |
| Other program expenses | $6,777,972 |
| Program Expenses | $94,883,876 |
Governance & Staff
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CEO
Mr. Gordon McHenry, President/CEO
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Board Chair
Mr. Dave Burman, Partner
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Chair's Profession / Business Affiliation
Perkins Coie
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Board Size
40
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Paid Staff Size
221
Fundraising
Method(s) Used:
Direct mail appeals, Invitations to fundraising events, Print advertisements (newspapers, magazines, etc.), Radio, Grant proposals, Internet, Planned giving arrangements, Membership appeals, Appeals via Social Media (Facebook, etc.).
% of Related Contributions on Fundraising: 6.52%
Tax Status
This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
Financial
The following information is based on United Way of King County's Audited financial statements for the fiscal year ending June 30, 2021
| Source of Funds | |
|---|---|
| Grants | $49,822,916 |
| Gross campaign results | $40,367,217 |
| Income distribution from Administrative Endowment | $6,830,179 |
| Change in value of beneficial interest | $3,823,171 |
| Paycheck Protection Program loan forgiveness | $1,826,037 |
| Other income | $464,693 |
| Sponsorships | $370,514 |
| In-kind contributions | $9,641 |
| Total Income | $103,514,368 |
Breakdown of Expenses
| Total Income | $103,514,368 |
| Total Expenses: | $104,440,067 |
| Program Expenses | $94,883,876 |
| Fundraising Expenses | $6,020,047 |
| Administrative Expenses | $3,536,144 |
| Other Expenses | $0 |
| Expenses in Excess of Income | $925,699 |
| Beginning Net Assets | $65,722,380 |
| Other Changes In Net Assets | $0 |
| Ending Net Assets | $64,796,681 |
| Total Liabilities | $11,350,793 |
| Total Assets | $76,147,474 |
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