United Way of Washtenaw County executive director Pam Smith was speaking to 250 supporters packed into EMU’s McKenny Hall ballroom in September, explaining a decision that eliminated her own job: merging the philanthropic nonprofit into the much larger United Way for Southeastern Michigan.
Similar mergers are happening across the state and the country as the 136-year-old philanthropic organization pivots to make up for declining revenue. UWSEM itself was created by merging the United Ways of Detroit and Oakland County in 2005; Washtenaw now joins Wayne, Macomb, and Oakland counties under its umbrella. The joint organization is now led by Darienne Hudson, who has been the executive director of UWSEM since 2018.
Pam Smith (left) eliminated her own job in the merger with Darienne Hudson’s United Way for Southeastern Michigan. Board member Rich Chang moved to the regional group. | Photo: Courtesy UWSEM
The core funding for United Way organizations comes from workplace campaigns in which employees authorize contributions taken directly out of each paycheck. At EMU, Smith explained that UWWC has seen fewer payroll deductions as more people work remotely. But the pandemic only exacerbated a trend that was already well underway. In 2008, the UWWC workplace giving campaign brought in about $8 million—but $2 million of that came from Pfizer, which was shutting down its Ann Arbor operations. In 2012, the campaign raised $5 million, and in 2022, $3 million. This reflects national trends, where United Ways have seen a 61 percent reduction in workplace giving since 2007, according to Perspectives Consulting Group.
“It was my idea” to join UWSEM, says Smith in an interview. The larger group “already manages our 211 call system that manages over 8,000 calls a year from Washtenaw County alone. They are already our employer of record and share local campaigns, programming, and grants. So there was already an aligned mission and values in place.”
“It’s been actually happening across the nation,” says Rich Chang, who cochaired UWWC’s “preferred future committee” as part of its strategic planning process. “We got to see the impact that those particular organizations had as they combined forces,” including at United Way of South Central Michigan, created in a recent three-way merger with United Way of the Battle Creek and Kalamazoo Region, Capital Area United Way, and United Way of Jackson County.
UWSEM’s workplace giving campaign has seesawed from $35 million in 2013 to $46 million in 2018 and $38 million in 2022. Yet total fundraising has risen from $43 million in 2013 to $56 million in 2022, thanks to the dynamism of their forty-person development team. “The way that the donor wants to be engaged is very different across generations, but also just across individuals,” says Sarah Grutza, vice-president of corporate relations. To “meet donors where they’re at,” UWSEM developed affinity groups and giving societies like the Tocqueville Society, Emerging Philanthropists, and Women United, and will expand UWWC’s Student United group. Popular local campaigns like Power of the Purse will remain unchanged, and donors will still be able to designate gifts for a specific nonprofit.
Both Smith and Chang are optimistic that the merger will lead to more funding for Washtenaw. Chang transitioned from the UWWC board to UWSEM’s and is cochairing this year’s fundraising campaign. “Our target is $45 million,” he says, “For UWWC, our target was like $3 million.” In addition to dollars, the campaign is seeking 45,000 volunteer hours, which is how many core programs are staffed.
“The hope is that it brings opportunity,” says Joye Clute, director of service programs for Friends In Deed. “But really the fear is that the needs are so great in all of these counties that they just merged, it gives the impression that there is going to be a lot less for a lot more need.” She notes that the average assistance request she fields today is three to four times what it was before the pandemic.
According to the Michigan Association of United Ways, the number of people in Washtenaw classified as either below the poverty level or “asset limited income constrained employed” (ALICE) grew from about 30 percent in 2018 to 40 percent in 2021. For Black households, that number was more than 60 percent.
“I can appreciate that there are concerns,” says Hudson. “But there are a number of ways, not only through dollars but wraparound support, in-kind support, and really just having a hands-on and collaborative spirit in the way that we do this work that we feel we will be able to bring to Washtenaw County.”
In addition to quarterly “touch points” (where UWSEM gathers more than eighty Washtenaw community members to discuss critical issues), Hudson says they will rely on data gathered for the ALICE report and requests for help that come in through the 211 call center.
All current Washtenaw grant commitments will be honored. For the fiscal year that began in October, UWSEM has guaranteed $1 million for the UWWC’s community impact grant, $225,000 for basic needs, and $200,000 for the racial equity fund. Additional grants will be announced once they have raised a substantial portion of the $45 million goal.
As for her plans following her three-month consultancy with UWSEM, Smith says it’s too soon to say, but “my hope is to remain working in Washtenaw County and creating a community where everyone can thrive.”
UWWC’s other ten staff members will join UWSEM, continuing to work from its office on Platt Rd., where many UWSEM employees who live in Washtenaw will relocate. Chang is one of six members of the UWWC board who’ve joined the UWSEM board.
“Any time there’s a merger there’s always concern if they will still be able to serve on the local level,” says Bonnie Billups, executive director of Peace Neighborhood Center. But he’s “hopeful that they will continue their focus centered on eradicating poverty and working from a perspective of diversity, equity, and inclusion throughout the county.”
