Questions and Answers about your United Way

Q: What does United Way do?
A: United Way of the Greenbrier Valley's goals for Advancing the Common Good  focus on three critical building blocks for a good life - Education, Income and Health. Funding is provided to thirty-two partner agencies in the Greenbrier Valley for programs and services that support our goals. In addition, United Way has several initiatives supported by campaign gits including Warming Hands & Hearts (emergency home heating assistance), Born Learning (early childhood education), and FamilyWize (a free (prescription drug discount card).

Q: How much of my contribution is spent on administration and fundraising?
A: The United Way annual report ending September 30, 2007 shows administrative expenses at 14%, fundraising at 6%, programs at 79%, and United Way of American at 1%.

Q: How does designations to agencies work?
A: If you designate to a United Way partner agency or initiative, 100% of your contribution goes to that agency or program. If you designate to a non-member agency, that agency will receive your contribution at the end of the upcoming calendar year. The United Way will assess a processing fee of 7% or $5, whichever is greate.

Q: How are gifts to the general fund allocated?
A: If you make a contribution to the general fund, your gift is allocated to all thirty-two agencies and the entire network of services provided to those who need them most.

Q: Who determines how much money is given to the programs of each partner agency?
A: Volunteers serving on the Allocations Committee make recommendations for funding based on agency site visits, program proposals, and interviews with agency representatives. Recommendations are presented to the United Way Board of Directors for final approval. The Allocations Committee has representation from Greenbrier, Monroe and Pocahontas counties.

Q: Who benefits from United Way programs?
A: In 2004,beneficiary studies show United Way funded programs reached 1,354 families, 3,223 adults, and 2,280 children.

Q: Why does United Way pay dues to United Way of America?
A: United Way of the Greenbrier Valley is a member of United Way of America. A part of the criteria for being a member is one percent of campaign proceeds to the national office. This one percent covers a host of services including staff training, advertising, publicity, and national account maintenance. The remaining ninety-nine percent stays here locally and is allocated by local volunteers from our community.

Q: If I designate to a specific agency, is my contribution above the amount allocated to that agency by

United Way?
A: It depends on how you look at it. The important thing to remember is that United Way funds programs and services, not overall operational budgets.  If Agency X requests $5,000 from United Way to fund program ABC, and donor designations to Agency X are $1,000, United Way could give agency X the donor designations plus a $4,000 grant, or they could give agency X $5,000 which includes the donor designations. Either way, Agency X receives the allocation it needs.

Q: Why should I give to United Way? Why not give directly to an agency?
A: When you give to United Way, you are supporting a broad spectrum of programs and services that assist families, children, youth, and our aging population. Everypartner agency addresses at least one goal of Advancing the Common Good. When you give to United Way, you can be assured that you are making a wise community investment. Your gift supports programs and services, not operational budgest. Every year, the Allocations Committee scrutinizes each agency to make sure their programs are effective, efficient, and doing the job they are supposed to be doing.

For many people, investments in securities represent a significant portion of their assets. Stocks and other investments are often an important part of one’s long-term plans, providing a nest egg to rely on in the future.
Did you know that your investments can also be an excellent source for charitable gifts? Stocks, bongs, mutual funds, and other securities that you have owned for more than one year not only make convenient gifts, but can provide you with welcome tax benefits as well.
The following are some commonly asked questions and answers about giving securities. By reading them, you may discover how stocks and other investment assets can help you make a significant charitable gift at less cost than a comparable gift of cash.

Q: Why should I consider using securities to fund my gift?
A: While cash is the most popular form of charitable gift, gifts of non-cash assets such as publicly traded stocks or bonds can be attractive because of the favorable income tax treatment they may bring.
If you own securities that have appreciated in value over time, you may owe a substantial capital gains tax if you sell them. But, if you use such assets to fund a charitable gift, you may completely avoid the capital gains tax while enjoying a federal income tax deduction for the full value of the securities. Giving securities helps conserve cash for other uses. You also may be able to make larger gifts than you thought possible.

Q: Which security should I give?
A: For maximum tax benefits, it is usually best to give securities that have increased in value the most since you have owned them. Or you may wish to give a particular security as part of efforts to simplify your portfolio.

Q: What if the securities have dropped in value?
A: To give securities that are worth less than their purchase price, it is usually best to sell the asset, then give the cash proceeds. You may then be able to claim tax benefits for both the capital loss and the charitable gift.

Q: Is it possible to give mutual funds?
A: Yes, mutual funds make welcome gifts. Contact us or your financial advisor for more information.

Q: How do I go about making a gift of securities?
A: If you own the securities outright and have the certificates in your possession, send the charitable recipient a signed stock power and the unendorsed stock certificate in separate envelopes. The stock power form is available from your financial services provider. Your gift is considered to be complete on the date of the later postmark if the envelopes are not postmarked on the same day.
In the case of mutual funds or securities for which you do not hold a certificate, ask us or your financial advisor about the most efficient ways to complete your gift. For tax purposes, the gift is complete at the time of the actual transfer. It’s a good idea to allow extra time for the completion of all gifts of securities.

Q: What if I want to make a gift, but am reluctant to give a stock that is increasing in value?
A: There is a way to give back stock and, in effect, “keep” it. Consider giving the stock and replacing it by repurchasing the same security with cash you otherwise would have given. You will then own the same stock with a new, higher cost basis. When you sell the stock, you will owe less tax because you have given away earlier increases. If the stock declines, you may then be able to benefit from a deductible loss.

Q: Is there a way I can give a portion of my securities and sell the rest?
A: Yes. If you own securities that have greatly increased in value that you feel have reached their peak, consider what is known as a balanced sale.
Under this plan, you make a gift of a part of your investment while selling the remainder. Your advisors can help you do this so that you will enjoy income and capital gains tax savings that will offset tax due on the securities you sold.

Q: My securities have grown in value, but produce small dividends. Is there a way to fund a charitable gift with these assets and receive income in return?
A: There are a number of popular options that allow you to make charitable gifts, enjoy tax savings, and also increase your spendable income. The income may be fixed or variable, and it can be paid for one or more persons’ lifetime or another period of time you choose (up to 20 years).
An income tax deduction is allowed in the year of the transfer for the gift value. You avoid or delay capital gains tax. The donated asset is generally removed from your taxable estate, perhaps resulting in an additional tax savings for your heirs.