Is UJC Changing Its Modus Operandi?

Thanks to Ira Kaminow at Just-Tzedakah for this heads-up on an article about United Jewish Communities appearing on the JTA web site entitled "Strategic-planning Model Spreads As Federations Seek To Grow Campaigns."

Some chapters of UJC are copying United Way of America's new approach (or is it the other way around), replacing the traditional "member charity allocations" system with an "outcome-based grants" system.   The result is to increase the decision-making power of the federation and reduce the decision-making power of the member charities. 

Readers of this blog may recall my objections to United Ways adopting this new model when they do so in conjunction with moves to disempower individal contributors' opportunities to give to the charities of their choice.  Moves such as restricting or eliminating donor option programs ("write-in gifts"), for example.  Full disclosure:  My client, Jewish Charities of America, takes the opposite approach, encouraging contributors to tell the federation which of the member charities should share in their gifts and how much for each.

So what do you think?  Is UJC on the right track?

Comments

[M. Bernice Dinner, Ph. D.]

UJC's new approach as well as its past to fundraising has never been donor driven. Its leadership feels that it knows better than the donor about how and where to allocate the donors money. Giving to UJC implies today more than ever that the donor is comfortable with the decisions made by UJC allocations committees. UJC does an excellent job of involving their donors as volunteers. I believe this focus on involvement of donors in their type of allocation process is the key to UJC's success. If a donor does not feel that UJC leadership can adequately represent their personal philanthropic priorities, then they should contribute directly to charities that do respond to their concerns. It is my understanding that the Denver Jewish Federation went to a donor choice system and they have significantly increased their total contributions. Denver Federation distributes the funds to the charities as specified by the donor. Donors who do not want to designate their gifts give to the UJC Federation to designate for them. The Jewish charities in Denver have become more appreciative of the donors to Federation as a result of this process. They directly communicate to their donors about how they use the donors funds and directly accountable to the donor. Failure to show measureable results to the donor will result in fewer dollars being designated in future years to that Federation member agency. UJC's system of using undesignated dollars and that of JCA's complete donor choice system are both excellent ways to raise money. I like JCA's system because it gives the donor the greatest control over his or her philanthropic investment.

[Ira Kaminow]

Right on, Bernice. I came to the comment section to post my views. But they parallel your thoughts exactly and I couldn't have said it as well.