Charity Review

  • Issued: October 2017
  • Expires: October 2019

United Way of Miami-Dade

Standards Not Met

  • 1
  • 6
  • 7
  • 14

305-860-3000

3250 Southwest Third Ave
Miami, FL 33129

https://unitedwaymiami.org/

305-860-3000

3250 Southwest Third Ave
Miami, FL 33129

https://unitedwaymiami.org/

Standards Not Met

This organization does not meet one or more of the 20 Standards for Charity Accountability. Click the conclusions section below for more information.

Standards For Charity Accountability

Governance

  1. Board Oversight

    Oversight of Operations and Staff: Standard 1

    Description
    Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

    UW Miami-Dade does not meet this Standard because its board of directors does not:

    • Review the performance of the chief executive officer (CEO) at least once every two years. The most recent CEO review took place in April of 2013.

  2. Board Size

    Number of Board Members: Standard 2

    Description
    Soliciting organizations shall have a board of directors with a minimum of five voting members.

    The organization meets this standard.

  3. Board Meetings

    Frequency and Attendance of Board Meetings: Standard 3

    Description
    An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

    The organization meets this standard.

  4. Board Compensation

    Compensated Board Members: Standard 4

    Description
    Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

    The organization meets this standard.

  5. Conflict of Interest

    Conflict of Interest: Standard 5

    Description
    No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

    The organization meets this standard.

Measuring Effectiveness

  1. Effectiveness Policy

    Board Policy on Effectiveness: Standard 6

    Description
    Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

    UW Miami-Dade does not meet this Standard because:

    • Its effectiveness assessment policy specifies an assesment frequency of three years or more.

  2. Effectiveness Report

    Board Approval of Written Report on Effectiveness: Standard 7

    Description
    Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

    UW Miami-Dade does not meet this Standard because:

    • Although it produced a written effectiveness assessment report in December 2016, the report did not include recommendations for future actions.

Finances

  1. Program Expenses

    Program Service Expense Ratio: Standard 8

    Description
    Spend at least 65% of its total expenses on program activities.

    The BBB is unable to verify if this organization meets this standard.

  2. Fundraising Expenses

    Fund Raising Expense Ratio: Standard 9

    Description
    Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

    The organization meets this standard.

  3. Accumulating Funds

    Ending Net Assets: Standard 10

    Description
    Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

    The organization meets this standard.

  4. Audit Report

    Financial Statements: Standard 11

    Description
    Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

    The organization meets this standard.

  5. Detailed Expense Breakdown

    Detailed Functional Breakdown of Expenses: Standard 12

    Description
    Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

    The organization meets this standard.

  6. Accurate Expense Reporting

    Accuracy of Expenses in Financial Statements: Standard 13

    Description
    Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

    The BBB is unable to verify if this organization meets this standard.

  7. Budget Plan

    Budget: Standard 14

    Description
    Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

    UW Miami-Dade does not meet this Standard because, when the organization provided 2017 budget information, it indicated that the budget:

    • Did not identify total projected fund raising expenses.
    • Did not identify total projected administrative expenses.
    • Included total projected program service expenses, however, did not break these expenses down by major program category (i.e. Early Child Education, Education II, Financial Stability, Health, Fiscal Agent Projects, and Other community projects.)

Fundraising & Info

  1. Truthful Materials

    Misleading Appeals: Standard 15

    Description
    Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

    The BBB is unable to verify if this organization meets this standard.

  2. Annual Report

    Annual Report: Standard 16

    Description
    Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

    The organization meets this standard.

  3. Website Disclosures

    Web Site Disclosures: Standard 17

    Description
    Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

    The organization meets this standard.

  4. Donor Privacy

    Privacy for Written Appeals & Internet Privacy: Standard 18

    Description
    Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

    The organization meets this standard.

  5. Cause Marketing Disclosures

    Cause Related Marketing: Standard 19

    Description
    Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

    The organization meets this standard.

  6. Complaints

    Complaints: Standard 20

    Description
    Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.

    The organization meets this standard.

Conclusion

United Way of Miami-Dade does not meet the following 4 Standards for Charity Accountability:

Standard 1 - Oversight of Operations and Staff
Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

UW Miami-Dade does not meet this Standard because its board of directors does not:

  • Review the performance of the chief executive officer (CEO) at least once every two years. The most recent CEO review took place in April of 2013.

Standard 6 - Board Policy on Effectiveness
Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

UW Miami-Dade does not meet this Standard because:

  • Its effectiveness assessment policy specifies an assesment frequency of three years or more.

Standard 7 - Board Approval of Written Report on Effectiveness
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

UW Miami-Dade does not meet this Standard because:

  • Although it produced a written effectiveness assessment report in December 2016, the report did not include recommendations for future actions.

Standard 14 - Budget
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

UW Miami-Dade does not meet this Standard because, when the organization provided 2017 budget information, it indicated that the budget:

  • Did not identify total projected fund raising expenses.
  • Did not identify total projected administrative expenses.
  • Included total projected program service expenses, however, did not break these expenses down by major program category (i.e. Early Child Education, Education II, Financial Stability, Health, Fiscal Agent Projects, and Other community projects.)

In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s finances and solicitation materials and is unable to verify the organization's compliance with the following 3 Standards for Charity Accountability: 8, 13, and 15.

United Way of Miami-Dade meets the remaining 13 Standards for Charity Accountability.

Purpose

  • Year, State Incorporated

    1957, Florida

  • Stated Purpose

    “to build community by helping people care for one another.”

Programs

UW Miami-Dade reports that they work to build a Miami where all children have the opportunity to learn and thrive, where families are financially secure, and where people can live healthy lives. The organization reports that they advocated for the elimination of a five-year ban for lawfully resident immigrant children to enroll in Florida KidCare program, and successfully advocated for an additional $27 million in state funding for early learning programs across Florida. UW Miami-Dade reports that they provided a quality early education experience for 3,089 children; offered 30,384 hours of professional learning to 2,122 early childhood professionals; and enabled 18,000 youth to attended after-school programs. The organization also reports completing the first year of a five-year $22.5 million federal early Head Start-Child Care partnership grant, reaching 320 infants and toddlers. The organization reports that, during 2016, UW Miami-Dade provided 262,330 hours of care for 1,030 homebound elderly; delivered healthy meals to 10,470 seniors; and offered 9,403 health screenings for children and adults. UW Miami-Dade further reports providing 50,000 people with emergency food and shelter assistance and 3,497 individuals and families with financial counseling.

Early Child Education 11,034,785
Education II 4,329,405
Financial Stability 4,247,620
Health 6,018,515
Veterans Support 43,733
Others community projects 277,297
Distribution to Designated Charities 22,963,648
Total Program Expenses: $48,915,003

Governance & Staff

  • Chief Executive

    Harve A. Mogul, President and CEO

  • Compensation*

    $582,189

  • Chair of the Board

    Mike Farra

  • Chair's Profession / Business Affiliation

    Partner of Accounting Firm

  • Board Size

    51

  • Paid Staff Size

    186

*2015 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.

Fundraising

Method(s) Used:

Direct mail, special events, grant proposals, planned giving, and workplace campaigns.

UW Miami-Dade incurred joint costs of $7,857,828 for informational materials and activities that included fund raising materials. Of those costs $5,279,307 was allocated to program expenses,$2,038,962 was allocated to administrative expenses, and $539,559 was allocated to fund raising expenses.

Fundraising costs were 5% of related contributions. (Related contributions, which totaled $44,312,777, are donations received as a result of fundraising activities.)

Tax Status

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.

Financial

The following information is based on UW Miami-Dade's audited financial statements for the fiscal year ended June 30, 2016.

Source of Funds
Annual campaign, net 42,058,650
Grants 9,710,586
Special events, net 1,483,105
Other contributions 652,738
Investments gains and other income 536,351
Legacies and bequests 118,284
Total Income $54,559,714
  • Programs: 84%
  • Fundraising: 4%
  • Administrative: 12%
Total Income $54,559,714
Program expenses 48,915,003
Fundraising expenses $2,268,829
Administrative expenses $7,021,355
Total expenses: $58,205,187
Expenses in Excess of Income (-3,645,473)
Beginning Net Assets 54,860,675
Ending Net Assets 51,215,202
Total Liabilities 48,693,602
Total Assets 99,908,804

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