UNITED WAY OF CENTRAL MARYLAND DROPS FEE
Regional nonprofit lowers designation fee to flat five percent

Baltimore, MD (April 9, 2009) – In order to help try and combat the strain the current economic climate has put on so many, United Way of Central Maryland it is changing its fee structure, charging just five percent for designations.

“Right now, it is critical for us to do everything we can to help encourage donors to donate and to help agencies,” said Larry Walton, president of United Way of Central Maryland. “By changing our designation fee structure, we have the potential to direct tens of thousands of additional dollars to nonprofits that need it.

Based on last year’s campaign, it could mean more than $400,000 in additional funding for the nonprofit community. The potential increase depends on myriad factors, including the agency and how it’s been designated to and by whom.

“Like so many other nonprofits, we have been hit hard by the recession,” said Major Roger Coulson, area commander of the Salvation Army. “By lowering its designation fee, United Way is helping us make sure more people can get the immediate help they need. At a time when everyone is facing increasing challenges and shortfalls, this means a lot to the nonprofit community.”

Robin Tomechko, president & CEO, Big Brothers Big Sisters of Central Maryland, said, “By lowering its designation fee, United Way is getting more dollars into the hands of frontline agencies like ours, which means we can match more youth with mentors.”

United Way is able to lower the fee by reducing costs elsewhere. The main priority was to get funds where they are needed most and to encourage people to maximize their gifts.

Donor Jeff Pratt, director of faculty, staff and retiree programs at Johns Hopkins University, couldn’t agree more.

“As a supporter of many causes I find truly important, it’s tough to always pick one agency or one issue to fund. Knowing United Way is providing me an option to give and have more of my gift directed exactly where I want is reassuring right now,” he said.

That was a big part of United Way’s decision to make this change.

“We hope this helps encourage more companies to run campaigns and more individuals to consider making a gift as those extra funds are needed more than ever before,” Walton added.

United Way of Central Maryland previously charged 17.5 percent for paper pledged designations and 12.5 percent for electronically pledged designations to specific health and human service programs that were not impact partners. There was a cap of $375. The new cap is $500, with a $5 minimum. There is no fee to give directly to United Way of Central Maryland, its focus areas of education, income and health or to 2-1-1 Maryland at First Call for Help, an information and referral line.