Analysis of United Way of America - Report Example

? Analysis of United Way of America Task Introduction The United Way of America (UWA) is an organization located in USA, and majorly deals with offering charitable services to underprivileged in society (Craats, 2002). Lack of ethical merits by Chief Executive Officers (CEO) of the nonprofit organization plunders its public profile. The significant points extracted from United Way: A Nonprofit Tries to Cope with Image Destruction are listed in details and questions on the article answered effectively. Section 1 Significant Points in United Way: A Nonprofit Tries To Cope With Image Destruction Firstly, a significant point to be noted is that both consumers and business personnel should be aware of arrogant mindset of their leaders in various fields. Stupendous leaders are able to regard their subordinates and dynamic outsiders. They do not consist of superiority mindset but understand workers in a courteous manner. For non-profit and governmental institutes to be able to manage funds aptly and efficiently, the use of checks and balances are remarkably significant. Corporate Entities do not require the use of checks and Balances as much as the later. Lastly, trust is an exceptional virtue required in marketing a non-profit organization and principally susceptible to adverse press. For a non-profit to succeed, it majorly depends on the donations for the bulk of their revenues. Consequently, an organization should be trusted by contributors that it will use the money effectively, and beneficiaries will receive the utmost benefit of the money. Interestingly, when the trust is questioned, the non-profit organization fails to get enough donators and sponsors. Managers running non-profit organization should apprehend that the organization is not a business typified by give and take. Secondly, the significance of non-profit organizations such as UWA is identified and highlighted. The use of ‘payroll deductions’ to fund other local aid-organizations through a major organization is an effectual method to stabilize funds for such organizations. Consequently, many charitable are able to manage and run their programs effectively, and lend a hand to the disadvantaged in society. Benevolent institutes give competent individuals a chance to show their love and concern through giving out contributions (Hartley, 2010). Such institutes grants opportunities to individuals in society, hence, have a place to lean. UWA is an effective charitable organization that worked exceptionally hard to convince corporations in considering the underprivileged in the society. Consequently, it instilled a sense of help to such organizations by being an example to tem. Thirdly, managers such as William Aramony are depicted as incomparable examples of CEOs administering organizations (Knapp, 2012). The point is that such managers are effective in their first years of managing and become disastrous when they see opportunities to enrich themselves. William increased UWA contributions from $781 million to $3 billion within a short span of 20 years. This was an outstanding achievement that requires determined and devoted managers to achieve. He did this through interacting with prominent individuals in society such as executives from America’s top corporations (Hartley, 2010). Unfortunately, after an investigation, William was accused of having a high salary, frequent travel habits, probable cronyism and uncertain associations with other spin-off companies. He also violated the organization policy of hiring family and friends in the company. United Way: A Nonprofit Tries to Cope with Image Destruction edifies CEOs on consequences of mishandling funds. William Aramony, from the charitable organizations experienced the penalties of dishonesty (Knapp, 2012). Board members should be active and be familiar with activities of the company. In this situation, many individuals questioned the roles of the board members, and the outside auditors played. The article encourages such these individuals to monitor the work and resolutions made by CEOs of an organization. Moreover, William’s salary could have been scrutinized by board members instead of making him the decider of his personal income. A further consequence brought out clearly is that after such scandals, major contributors, and associates stop donating their services. For example, UWA local’s contributors withheld their funds, after the scandal was brought to public. Further, such non-profit institute faces the risk of being considered by the Internal Revenue Service due to loans of spin-off companies. Other consequences are that an organization can lose potential and ready markets in the business world. UWA also ruined the image other charitable organizations; hence, could not run their programs effectively (Hartley, 2010). Electing Elaine Chao to replace the William is an essential lesson business personnel should learn. Elaine made considerable efforts to assist the bad image of the organization such as coming up with oversight committees and established policies. A point to be taken in is that an organization should monitor and vet their leaders to find out whether they are doing a splendid job. From the result, they can formulate an appropriate assessment according to the outcome. Section 2 What is the situation with United Way today? The situation with UWA is daunting because of the diminutive scandals caused its CEOs. The situation is discouraging, since the entire stake holders local contributors and corporations are disheartened by the miniature scandals facing the organization from the least individual expected. Although, the situation is currently not up to standard, UWA is working hard to get supplementary sponsors that would assist it accomplish its goals and targets. Are all local agencies contributing to the national? All local agencies are contributing to the national, since they approve the administration managing non-profit organization. The local agencies were liable for the national, since they do monitor the programs and projects of the organization that affect the stakeholders. They contribute through contributions and voluntary services to the organization. Have donations matched or exceeded previous levels? Donations has matched the previous levels, since Chao’s main aim was to bring the organization to the preliminary level. This is proven when she resigned after reaching the target. According to statistics, contributions did not exceed the initials levels before the scandal. For example, the total amount of donations was $12 million dollars less compared to the previous years when the outrage had been exposed. What is Elaine Chou doing now? Elaine Chou is a now a distinguished member of Heritage Foundation in Washington think tank where she is participating by suggesting opinions on social, political and economic life (Dillard, 2002). Heritage foundation plays a big role in the formation of Americans public policies, since it is exceptionally influential conformist research. Chou is a distinguished member of the foundation because of her successful life she has achieved (Dillard, 2002). Her are of specialization is on employments, trade, and issues that are viable in society (Dillard, 2002). She is also a famous and recognized speaker and a Fox News contributor on emerging matters. Has Brian Gallagher brought more transparency to the organization? Brian Gallagher has brought more transparency to organizations compared to earlier years of UWA leadership. His strategy of focusing on community impact has managed to bring exceptional success of using funds openly and appropriately (Fraser & Spizman, 2009). Gallagher has improved liability, ascendancy, and intelligibility in managing the programs and projects of the organizations. Currently, the organization has 11 million donors and 2.5 million individuals who have volunteered to work and offer free services (Fraser & Spizman, 2009). He has also brought more transparency by pressing the 1350 individual United Way units, which identifies the problems, locate money at charities and assess the results of the money. Gallagher value of results has promoted transparency since members work hard to achieve substantial outcome according to the resource available (Fraser & Spizman, 2009). How would you judge the public image of UWA today? I think UWA image is still substandard and has not yet proved to be effective on how they use money donated. The organization has faced similar criticism and scandals even after the major scandal caused by William Aramony. I believe these are some of the reasons why UWA public image is still wanting; Ralph Dickerson a CEO of New York used he organization money for personal reasons in 2002. Lastly, the CEO, Oral Suer, misused the organizations funds in 2004 and the reassignment of Norman Taylor had similar delinquency. Conclusion The organization has advanced from a local community and has developed effectual approaches of fundraising. The organization has faced solemn criticism and scandals that have blemished the image and is reduced the contributors. Currently, the organization is fighting to save its name and intentions through implementing practical strategies. References Craats, R. (2002). United Way. Mankato, MN: Weigl Publishers. Dillard, A. D. (2002). Guess who's coming to dinner now?: Multicultural conservatism in America. New York: New York University Press. Fraser, E., & Spizman, R. F. (2009). Do your giving while you are living: Inspirational lessons on what you can do today to make a difference tomorrow. Garden City, NY: Morgan James Pub. Hartley, R. F. (2010). Management mistakes and successes. Hoboken, N.J: Wiley. Knapp, Michael C. (2012). Contemporary Auditing. South-Western Pub. Read More