United Way of East Central Iowa (UWECI) is known as a trusted leader in East Central Iowa for imagining and creating positive change. We dive deep into research, engage with the community, and work year-round to make sure everyone has the support they need to reach their full potential.
Today, though, we are going to talk about how we continue to make a substantial impact on the community while running an efficient organization: the administrative rate. Talking about this topic used to be a lot like walking on egg shells, but it really isn’t as scary as it may seem.
In simple terms, the administrative rate—also known as overhead costs or indirect costs—is the money used to pay bills and salaries. It also gives us the space and opportunity to excel at our jobs. It provides flexibility for creating innovative solutions, which makes gifts more effective, and it is essential to delivering our mission of improving and supporting our community.
At UWECI, we are proud to say our administrative costs are below the national average of 16-18%. Coming in at 14%, $0.86 of every dollar donated to UWECI goes back into the community. The BBB Wise Giving Alliance helps donors make informed giving decisions by doing in-depth research into nonprofits and United Way meets all 20 standards for charity accountability!
One-percent of our overhead costs goes to United Way Worldwide to maintain our accreditation. This low percentage, however, is returned to us at a greater rate in the form of professional development opportunities and campaign assistance from multi-national companies. The additional 13% goes toward the above essentials.
So why are we talking about this? Because we want you to know exactly what’s going on behind-the-scenes at UWECI. Transparency is key to a trusting relationship, and this hot topic used to be one that nonprofits avoided. Instead, we are excited to give you an inside-look at our organization and we are always open to answering any questions that aren’t already addressed on our FAQs page.
A nonprofit’s administrative rate shouldn’t be the only measurement for success. Instead, consider the success of its programs, donor engagement and growth, and its ability to create pioneering solutions for community issues—just to name a few. As we work to break the cycle of poverty and create stronger communities, UWECI focuses on education, financial stability, and health—all of which are essential for living well. You can see who our partner agencies are, which programs we support, and how they’re making a difference in the community on our funded partners page.
