Logan Patmon

The United Way as a national organization donated more than $3.9 billion last year to various charities, but has at times come under criticism for its large overhead in running the organization.

Much of the criticism has been directed toward the United Way’s operation in larger markets such as Southeastern Michigan, New York and Central Carolinas. In these areas closer to 75 cents of every dollar goes to charity.

This means almost a quarter of every dollar-raised stays with the United Way, pushing the limits of what is considered acceptable overhead for nonprofits.

United Way World Wide takes 1 percent of what every regional United Way receives in donations to run its international office, said Tom Olver, executive director at the United Way of Isabella County. “The majority of the money used for overhead is determined at the local level”.

The United Way in Isabella county sends 83 cents of every dollar to charity, 17 percent of the money raised goes to overhead cost at the regional level, expenses such as the utilities and staff members.

The Isabella County United Way’s Fund Drive reached its goal this year and has collected more than $410,000 since its fund drive began in August.

Of the $410,000 raised by the United Way of Isabella County almost $70,000 will be used by the organization to pay for its overages.

The United Way of Southeastern Michigan, which covers Macomb, Oakland and Wayne counties, received over $64 million in donations in 2011. Of the money raised just under $11 million was used by the United Way for its overhead cost.

The high pay of United Way chief executives has been often been at the center of the controversy. The pay of United Way workers, CEO’s included, is determined by an oversight board at the local level.

According to the 990s, tax forms that non-profits must fill out that gives information on how much money was raised and what it was spent on, there are large discrepancies in the amount of money that United Way CEO’s are paid.

The head of the Southeastern Michigan United Way is paid $443,990, while the heads of the Midland and Isabella United Way are each paid less than $100,000.

“Our goal is to raise money and help the community. Donors want their money to go back into the community,” Olver said. “If the board approved giving me a raise I would accept it. But I wouldn’t advocate spending that much on overhead”.

The United Way’s primary areas of focus are education, health and income. However, the money that the United Way uses for charity is allocated at the local level because of the diversity of the different communities that they work in.