United Way of Mass. rolls out new guidelines for giving
One of the state’s largest charities is launching a new giving method that will allow it to deliver tens of millions of dollars in funding to local grassroots organizations like never before, with a focus on addressing poverty and economic disparities.
The United Way of Massachusetts Bay announced Thursday morning the “first-of-itskind” philanthropic system, where any 501(c)(3) nonprofit in the region could apply for funding over the next seven years for any matter it deems fit. The new method will separate the charity from many other philanthropies locally and nationally that often share their wealth within an established network for specific, codified purposes.
Through its newly adopted framework, the nonprofit is providing more than $56 million to 124 local organizations in 12 cities through 2030. In the past, recipients received a fraction of the funding over a few years.
The new method signals a shift in United Way’s perspective on how philanthropy can make a difference, from simply funding temporary fixes to targeting sustainable solutions that get to the root of economic injustice.
“Long have passed the days where just counting the number of people that get served is enough,” said Bob Giannino, president and CEO of United Way of Massachusetts Bay.
“We need to be working on changing systems, and the underlying issues ... so that fewer and fewer people are impacted by these underlying conditions.”
For more than 85 years, the United Way of Massachusetts Bay has only delivered grants to organizations it invited to apply, what essentially became a relationship-based giving structure that often depends on who’s in your network, rather than who’s making actionable changes in the community.
“When you’re inviting [applicants], you’re inviting organizations that you hear about a lot, or that you’ve worked with,” Giannino said. “We really wanted to source very local, very grassroots, community-led nonprofits.”
The charity also historically offered restricted grants, or funds that are designated for specific purposes decided by the philanthropy. But now, United Way allows each recipient to devote their grants to whatever they see fit.
Tammi Wortham, United Way of Massachusetts Bay’s board chair, said the nonprofit’s unrestricted grantmaking could help tackle the state’s substantial racial wealth gap.
The charity will be streamlining the grant-seeking process for groups already on the ground making change, by giving them time to carry out their missions instead of “spending all the time making sure [philanthropists] know what they’re doing.”
“These unrestricted grants are going to be a game changer for how these organizations are going to make an impact in those communities,” Wortham said.
“Our communities have everything we need. We just need to be able to amplify the change that is needed,” Wortham added.
Karley Ausiello, United Way of Massachusetts Bay’s chief of community impact, said the charity held several community meetings two years ago to identify what residents cared about most. There, hundreds of residents discussed how measurable items such as having a sizeable savings account, or anxiety about having a safe house for their family, equally affected their overall economic wellbeing.
“The tangibles are equally as important are how people feel about their own family stressors,” Ausiello said.
The charity also learned, as Ausiello put it, “there’s a lot of great organizations out here that all deserve a chance to be part of what United Way’s vision is.”
Incorporating the community feedback, United Way started renovating its philanthropy process. It then introduced a new request for partnerships process that encompassed four “avenues to prosperity,” as determined by the dozens of community discussions across the state: economic inclusion and wealth-building; early education and out-of-school time; education and career pathways for youth and young adults; and safe and stable housing.
The nonprofit received 382 applications from nonprofits, and through community review selected 124 partner organizations across Boston, Cambridge, Chelsea, Haverhill, Lawrence, Lowell, Lynn, Malden, Quincy, Revere, Salem, and Taunton. The applicant pool was nearly double from previous years, when United Way received around 175 to 200 candidates each selection cycle.
Since introducing the new application model, the charity’s share of Black or Latino-led partners has increased from about a quarter to 35 percent this round, according to a press release.
Among the 124 grantees are Urban Edge, an affordable housing organization located by Jackson Square. Emilio Dorcely, CEO of Urban Edge, said the nonprofit is set to receive $150,000 annually for the next seven years, and plans on using funding for homebuyer assistance programs and exploring ways to help prospective buyers address rising home interest rates.
Dorcely said United Way’s renewed strategy could help eliminate economic disparities in the region because it encourages grassroots organizations to look into their own operations, and see how their work connects with addressing the racial wealth gap.
“This is an opportunity to have organizations begin to think about the work that they may already do, and how they could better target and focus their work around the racial wealth gap,” Dorcely said.
United Way of Massachusetts Bay looked to other philanthropies as models, such as the New Commonwealth Racial Equity and Social Justice Fund, which was created in 2020 to address obstacles that prevent grassroots organizations from receiving much-need funding.
The nonprofit also increased its share of grantees focused on policy-based solutions to the region’s economic inequality, as opposed to those that focus solely on social services.