On an edict from its parent organization, the United Way of San
Benito County has changed its policy on public disclosure of
funding allocations.
On an edict from its parent organization, the United Way of San Benito County has changed its policy on public disclosure of funding allocations.
At the local chapter’s annual allocations dinner May 20, 17 area organizations received a total of $121,060, in amounts from $1,015 to $22,060, raised during the annual United Way campaign. But a request by the Free Lance for specific information on how much each of the nonprofit organizations received was denied at the event, based on a policy that the amounts are not disclosed to the public.
Kerry Lorincz, treasurer of the local chapter, said if the media wanted that information it would have to wait until the chapter filed its next tax return.
For the past three years, the local chapter has not officially released information on local funding allocations – a policy that changed Tuesday after Lorincz received a call from Philip Jones, director of media and public relations for the United Way of America, who directed the local chapter to provide whatever financial information the media requested.
“United Way strongly suggested we immediately change our policy because it was not in keeping with the current push for greater accountability to the public,” Lorincz said.
Lorincz said Jones pointed out that the chapter’s nondisclosure policy was outdated and did not demonstrate public accountability. Jones said the policy was unacceptable for a nonprofit organization representing the United Way of America.
“This is not how we want our sister affiliates to conduct United Way business,” he said.
Jones also suggested that the local chapter not wait until its next board meeting for the policy change and to promptly make an executive committee decision, which Lorincz said was done by a teleconference call.
“Americans want more accountability,” Jones said. “We have a lot of educated donors out there and are very concerned how their money is being spent.”
But not all of the local chapter’s board members agreed with the change. Director Barbara Mulholland said many members of the board opposed releasing financial information and, as finance director for the City of Hollister, she, too, is often asked to release financial information to the public – something she said she might prefer to avoid.
“But I can’t do that,” she said.
Jones said the San Benito County chapter is in good standing with the national organization and is going through a re-certification process.
“We are working with over 1,400 United Way organizations across the country, informing them where United Way movement is going,” he said.
Federal law states that nonprofit organizations that file tax returns under 501(c)3 nonprofit status must make available to the public where the money is being spent. Tax laws state that any tax-exempt organization must provide copies of their forms 990 and 1023 to anyone who requests them.
Though each chapter is independent, separately incorporated and managed by local volunteers, each still falls under the standards and policies set at the national level. Jones said the revision of the local chapter’s disclosure policy wasn’t just a question of law, but also because the United Way of America wants the public to know where the money it donates is going.
“We want our donors to be informed how their money is being spent and the impact it has on their community,” he said.
Mary Damm, president of the local chapter, said changing the disclosure policy comes at a time when the board is putting together its ethics policy, which is a requirement to become a member of the United Way of America.
“We needed to rethink it,” she said.
Damm admitted the board’s policy was a “knee-jerk reaction” to complaints over how much money was given in the past to local nonprofit agencies.
“We had several agencies calling us to complain, and some of them never even applied. They didn’t understand the process,” she said.
Damm said though feathers were ruffled, it made board members stop and think that it was important and a great benefit to San Benito County that the local chapter become a member of United Way of America.
“Our biggest challenge is to let people know we exist – that our job is to raise money, and the public awareness is exactly what we want,” she said.
Spurred by a flood of donations following the Sept. 11, 2001 terror attacks, the United Way of America raised $5 billion during 2001-2002.
United Way Allocations
OrganizationAmount
American Red Cross$1,060
Boy Scouts of America$4,540
Catholic Charities$1,925
Community Pantry of SBC$22,060
Compassion Pregnancy Services$7,365
Del Mar Caregivers$8,885
Family Services Agency$3,290
Friends of the Library$3,585
Girl Scouts of Monterey Bay$2,790
Hollister Youth Alliance$18,575
Hope Rehabilitation$8,660
Jovenes de Antano$20,250
Ombudsman/Advocate$2,960
Pet Friends$1,015
RSVP of the Monterey Bay$1,800
Senior Citizens Legal Services$1,960
Foster Grandparents$3,365
YMCA of SBC$6,975
Total$121,060
Source: United Way
