United Way of Greater Milwaukee & Waukesha County Impact Based Funding

February 28, 2025

Beginning in 2025, United Way of Greater Milwaukee & Waukesha County is rolling out an updated funding model called Impact Based Funding. By investing greater dollars for impact, we hope to solve important issues faster

LOOKING BACK

At United Way, we know the importance of stepping back and reflecting on the history of our organization. We are proud of the support we’ve provided to our four-county footprint over the past many years. We are especially proud where our support has effectively addressed needs in the community leading to big solutions to big problems.

Two examples of this include the Teen Pregnancy Prevention Program that reduced the teen birth rate by 65%, and our Safe & Stable Homes Initiative, where we met the criteria of ending family homelessness in Milwaukee and Ozaukee counties a year ago and are pacing to do the same in Washington and Waukesha counties this year.

These are big solutions that we accomplished together as a community.

LOOKING FORWARD

In order to ensure that our United Way is maximizing the impact that our donors and volunteers are making, we have assessed how to best meet our community’s current needs. Beginning in 2025, we are rolling out some updated strategies for our work.

First, United Way Worldwide is introducing a brand refresh.

The goal is to ensure the relevance and sustainability of one of the world’s oldest and largest charities and better communicate the pivotal role United Way plays in mobilizing communities to action. The refresh is happening throughout the world.

Second is an update on our United Way’s funding model.

Over an extended period of time, we’ve had a chance to meet and discuss our funding model with over 200 individuals and organizations, as well as the United Way Board of Directors. All these conversations helped us shape our plans to transition to an Impact Based Funding model.

Why Impact Based Funding?

The Impact Based Funding model is better aligned with current community needs, donor desires, and will allow United Way and our donors to deepen our collective impact in our community.

United Way’s Traditional Funding supported a broad range of programs. Funding occurred annually to local nonprofits without application, and dollars were distributed based on the previous campaign results. The resulting level of investment and engagement lacks the depth needed to maximize meaningful long-term impact in our community.

Our donors have told us they want more comprehensive and effective solutions in partnership with business, nonprofit, government, and community members. This shift is designed to allow us to collectively solve more of our community’s biggest issues with less duplication, fewer silos and more coordination and impact.

We know that the Impact Based Funding model and support for Key Initiatives is more effective than traditional funding. Here are four reasons why:

They allow for:

A prioritization of resources. Key initiatives allow us to concentrate funding, staff, and partnerships on specific areas where we can make the greatest difference.
They offer a clarity of purpose. They allow us to articulate a clear vision and mission, helping all of our stakeholders understand our why—and what people can accomplish when they join in.
They address root causes. Initiatives targeting systemic issues, such as family homelessness or teen mental wellness help create long-term solutions rather than short-term fixes, something we know our community is hungry for.
Key Initiatives allow deeper and clearer metrics and benchmarks to assess progress. This funding model provides concrete evidence of change, which is essential for maintaining donor and community trust.

Impact Based Funding-FAQ

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What will the updated giving model fund?

This updated giving model will allow United Way of Greater Milwaukee & Waukesha County to more effectively drive community-wide progress on important issues by allocating more funding and staff capacity to our Key Initiatives.
United Way will invest in multi-year grants to organizations advancing the work of the Key Initiatives.
Current Key Initiatives include Safe & Stable Homes, Reducing Barriers to Employment & Advancement, Techquity, and Teen Mental Wellness: Empowering Minds.

How does the Impact Based Funding model work?

There would be an open invitation to complete a Letter of Intent to any 501(c)3 in good standing, operating for at least one year.
Letters of Intent are evaluated and prioritized to determine which proposals will advance to an application round.
Agencies are invited to apply for funding in one or more priority areas, or Key Initiatives, and must show capacity to measure towards community-level goal or equivalent.
Applications are evaluated and scored.
Multi-year funding commitments are renewed annually, with an opportunity to re-apply after final funding year if that key initiative is continuing.
Because funding is granted in connection with results-driven work, we can allow organizations to use funding where is most needed in the organization and not restrict it to specific programs.
With a few proposed exceptions, all applicants start at zero and are prioritized for funding based on metrics established by each priority area and funding available for that area.

Will some current grant recipients no longer be receiving United Way funding?

Likely yes. Moving forward, all potential grantees will need to apply for funding through a competitive process, so we can’t predict who will receive funding.
- While there is no guarantee of funding, currently 90% of our current program partners have existing programs that are aligned with our Key Initiatives, including Safe & Stable Homes, Reducing Barriers to Employment & Advancement, Techquity, and Teen Mental Wellness: Empowering Minds.
- This, however, does not guarantee funding; the application process will determine this.
Our goal is to work toward solving the issues addressed by these Key Initiatives, then expand to address new challenges.
In addition to Key Initiatives, United Way will invest in legacy and infrastructure resources, as well as support for urgent needs.
- Legacy funds will support programming that is essential for sustaining the achievement of a past collective impact or key initiative goal.
- Infrastructure programs and resources are designed to connect people to information and assistance in times of need. One example is IMPACT 211.

What will happen to current partner organizations that don’t receive funding?

We won’t abandon these organizations. There will be a process in place to ensure partner organizations who currently receive United Way funding have enough runway to prepare for this change.
- Details will be discussed with each current partner organizations and transitional funding will be offered over a designated period.
- In addition, specific services and support will be discussed for the nonprofit, including listings on our website, volunteer recruitment, etc.

What is the timing of the evolved funding model?

United Way is engaging current funded partners’ leadership in the model shift beginning in February 2025.
In July 2025, we will follow our traditional allocation process for existing partners.
The model will officially launch during the Fall 2025 campaign.
The updated funding model will begin to be implemented in July 2026 with a transition plan developed to assist those current partners who do not receive funding in the new model.

How does United Way choose Key Initiatives?

United Way is using Collective Impact to drive solutions to problems too big for one organization to solve.
- Collective Impact is the commitment of a group of people from different sectors to a common agenda for solving a specific social problem, using a structured form of collaboration.
- There is no shortage of great nonprofits in our region, but there is a shortage of efficient ways to collaborate more effectively.
- Few nonprofits are resourced to lead this kind of badly needed work. United Way is ready to lead.
When we are discussing a possible Key Initiative, we start with three questions:
- Do donors care? As a fundraising organization, the Key Initiatives are guided by donor input. United Way is committed to adapting to the input of our donors.
- Is it an important issue? Is it a need that is backed by data and critical throughout our four-county region?
- Can we help? Can United Way and partners provide the support and services for needle-moving change.
We use a Key Initiative Development Process to:
- Identify pressing community issues and building community change strategies to address them.
- Build relationships with potential donors and understanding their interests.
- Select issues, goals, strategies, and parts of strategies to frame as key initiatives.
- Develop materials and plans for offering the key initiative to potential donors in ways that connect with donors’ interests.
- Train and launching the key initiative.

United Way has been focused on Health, Education, and Financial Stability for many years. How does Impact Based Funding change this focus?

While United Way will no longer call out these categories as focus areas, each pillar, Health, Education, and Financial Stability plays an important role in the four Key Initiatives.
- Safe & Stable Homes:
  - Having a place to call home is one way to keep everyone in the family healthy. Without a home, a family’s health is at risk.
  - When a student is forced to move schools because of a shift in housing, we know a disruption in learning occurs.
  - Home is a place where families can feel secure and work to establish financial security.
- Reducing Barriers to Employment & Advancement
  - Having a stable career allows an individual and family to get the support and services they need to lead healthy lives.
  - Starting a stable career supports the short- and long-term financial health of an individual and family.
  - Eliminating barriers through education, training, and credentials helps people start a stable career.
- Techquity
  - Computer access is an essential component of connecting with healthcare professionals and maintaining a healthy life.
  - Computer access is a key component of education for both young and adult students.
  - Computer access is an important part of being an effective member of today’s workforce and establishing financial stability.
- Teen Mental Wellness: Empowering Minds
  - We know a student’s education suffers when they are struggling with mental wellness.
  - We know a student’s health suffers when they are struggling with mental wellness.
  - We know there are high costs associated with outside support and services as it relates to mental wellness. This initiative offers options for families in our community.

What is the best way to give to United Way?

Give to United Way
- Your gift is joined with other donors, and it becomes a powerful force for change—together, we are solving our communities’ biggest problems.
Direct Your Gift to a Key Initiative
- If you are passionate about one or more of our Key Initiatives, you can give directly to those specific causes.
Designate Your Gift
- You may decide you want to give all or some of your gift directly to a nonprofit you want to support. We welcome your partnership in giving through United Way to those great organizations.