Giving Compass' Take:

• The United Way is shifting models after a decline in revenue. While their influence in philanthropy may be shrinking, this gives nonprofits a chance to move into the spotlight of impact giving. 

• How is the landscape of philanthropy changing? What are some alternative models that United Way can adopt?

• The article notes that some high-net-worth donors are turning to donor-advised funds. However, there is a darker side to this type of philanthropy. 

The United Way was once one of philanthropy’s biggest players, but all across the country, many are now scrambling to find their place within the larger philanthropic ecosystem. Its annual revenue, once reaching $101.9 million, is now in decline, hitting only $77 million in 2017—a $10 million drop from the prior year.

While overall giving in the US is increasing (though that trend is being closely watched with the passage of Trump’s tax plan), the way individuals are giving is changing. Lower-dollar, working- and middle-class donors are increasingly giving directly to nonprofits through online fundraising avenues and sometimes through crowdfunding mechanisms and events.

Higher-net-worth donors are moving in droves to donor-advised funds, which offer them an immediate tax deduction with flexibility on when and where the funds are ultimately donated.

The organizations that the United Way supports—the nonprofits to which its funds are ultimately granted—will also likely have to adjust to this new reality. The shrinking presence of the United Way as an intermediary advisor will likely give nonprofits with big brand name presence a leg up, as one of the roles the United Way has historically played has been assessing the strength of organizations beyond their name brand.

Read more about changing United Way model by Danielle Holly at Nonprofit Quarterly.