Headline News

Housing is charity's new focus

Tuesday, September 4, 2007

The official charity of the NFL. Charity partner of corporate giants such as Bank of America and AT&T. Endorsed by the leadership of the AFL-CIO.

To most Americans, the United Way is the epitome of Big Charity, a 120-year-old organization tied to Big Business and Big Labor and focused on funding non-controversial programs that help the needy.

So why is Bergen County's United Way grappling with one of New Jersey's hot-button issues by underwriting construction of affordable housing for the working poor in one of the state's wealthiest counties?

Why is it drumming up support for the financially strapped families of National Guard soldiers deployed to Iraq – in the process inevitably calling attention to the failure of the U.S. government to meet those needs?

Because that's our job, says Tom Toronto, the organization's president.

"My charge from the United Way board is to help the people of Bergen County in a concrete way. When you start doing that, you get to the root causes of their problems."

And nothing is more at the root of the financial problems of the county's poor, Toronto and his staff determined, than their inability to afford a place to live. "We've been solving our affordable housing problem in this county by having people move to Pennsylvania," he said.

Its focus on such issues isn't the only reason why Mom and Dad wouldn't recognize this United Way. In the old days – or at least a few years ago, anyway – if you wanted to give to the United Way, you filled out a pledge card at work, your company sent it in and the United Way handled the administrative work of telling your boss how much to deduct and figuring out which charities got the cash.

Want to give now? You can sign up online, make your donation by credit card, get a user name and a personal identification number, and periodically sign in and disburse your contributions to whatever charities you want. Signing up through your employer? You can create the same kind of "charitable flex fund," as the United Way calls it – and if your employer offers a company match, it will get a quarterly statement showing to which charities the money goes.

Another change: Traditionally, the United Way acted as a middleman, distributing money to charities either of the donor's choice or that it determined were worthy recipients. Last year, Toronto said, more than $2 million of the $9 million it spent on charitable operations went to programs run by the United Way itself: building low-income housing, operating the 211 statewide phone referral service and providing people in need with emergency aid through its Compassion Fund.

He added that the proportion of United Way spending on its own programs will continue to increase; just three years ago, virtually all of its money was still distributed to other charities.

The changes have played well with local corporate leaders: Several Bergen County-based companies said their relationships with the United Way continue to thrive. "This is a move in a positive direction," said Jennifer Farrington, director of social investing for BD, the medical technology company in Franklin Lakes. "The United Way also helps BD partner with them in a way that's more linked to the company's expertise and areas of interest."

Spending on programs: The United Way spends 89 cents of every dollar on charitable activity. Plus

Spending on fund raising: For every dollar it spent on fund raising, the organization earned about $21 in donations, the fourth-best rate among the state's 23 United Ways. Plus

Executive compensation: Toronto's total compensation package this year comes to $144,000. That's the second-lowest among the five New Jersey United Ways with budgets of $5 million or more, but the fourth-highest among all United Ways in the state. Neutral

Financial stability: Over the past three years, the organization's net asset base has grown from $1.1 million to $2.6 million. Plus

Outcomes: In the past 2½ years, the United Way has paid for construction of 36 houses for working poor families who had never owned a home. Last year it spent about $2.2 million on its own "core" services (211, affordable housing and the Compassion Fund) and distributed an additional $7.8 million to other charities. Plus

Demand for services: The 211 statewide referral service received 250,000 phone calls last year from people seeking various sorts of human services. The United Way expects to hand out $1.1 million from its Compassion Fund this year to people in need of emergency assistance. Plus

Transparency: The organization readily supplied copies of its tax returns and financial statements. Plus