Donating through payroll deduction

poseidon · #1 02-05-2002, 11:59 AM

Does anyone else here have a company that will allow you to donate part of your pay to charity through a payroll deduction?

Ours does, and every few years they drive me nuts.

Apparently, we have "competitions" in the company to see which office can be the most generous. This naturally puts a lot of pressure on the employee to sign up for this "wonderful" program.

Our company does it through United Way.

I hate United Way.

I have declined each time to sign up for this "wonderful" benefit. I then have to go through the whole rigamorole of an explanation as to why I won't participate.

One problem that I have with United Way is that at least the Denver chapter is riddled with fraud. Another problem that I have is that I already donate money to charities that I like directly. United Way is nothing more than a clearing house, which means that my donation dollars have to pass through United Way before they reach the intended beneficiary (a battered women's shelter). I'd rather there not be any "administrative costs" for that money going to United Way. I'd rather as much as humanely possible be given to this shelter directly.

I think that this makes me look bad as an employee. I guess I really don't give a rip what my fellow employees think since I work from my home. However, at the same time, I do care. I also care that someone higher up is keeping tabs on me as to whether or not I'm donating to "their" charity (the United Way). I don't like the idea that in my H.R. file, they know if I'm "playing the game" or not.

Does anyone else ever have to go through this, too?

frazzledspice · #2 02-05-2002, 12:13 PM

Jeff, many times it's the department heads that are named the chairpeople of the drive in their departments.

This puts additional pressure on employees, too.

But you do have the capability of designating your contribution, and there are many faith-based charities that your church probably supports which are listed under United Way's umbrella.

If you would rather donate to a charity that spreads the gospel as well as feeds the hungry, you would probably have that option.

As a Catholic, I know that Catholic Charities is always listed on the list, and I'm sure there are many others.

The only time I resented United Way was when my husband had lost his high-paying job and they deducted his year's United Way contribution from his severance pay.

Tacky, tacky, tacky....

poseidon · #3 02-05-2002, 12:19 PM

Fraz,

It isn't that I don't like the selection of recipients on the United Way list. I like them just fine. As I said, the battered women's shelter that I donate to is on the United Way list.

My problem is with the United Way itself. Not only do I not trust the United Way to handle the money, I don't want them taking "a piece of the action" in administrative costs.

I also don't think that it is any of my employer's business whether or not I choose to donate money.

Jeff

certiorari · #4 02-05-2002, 12:55 PM

I agree with Jeff. They "encourage" us to donate to the United Way so they can claim a high participation rate. I will pick my own charities on my own time.

**drmomentum**[$] · #5 02-05-2002, 12:57 PM

It isn't your employer's business whether and how much you donate - and that ought to be enough excuse for anybody.

When I was at Raytheon, I heavily donated to the United Way, partly because of the pressure (there was a culture that sounds similar to your company).

However, in later years and other jobs I have taken the attitude that those programs are more for people who don't take the time to tailor their contributions. I look at it this way: when I want a car, I don't hire somebody to find one for me and pay more for the same car, I go out and find the car. I don't pay someone to do my taxes, I do them myself to save money. I like to cut out the middleman. it's just good yankee frugal sense. So when I give, I want the recipient to get the same value. i will do the work of deciding where to give, and they get all of it.

I'm sure these other charities do good work. I'm sure they can do some things very efficiently, and in fact more efficiently as a large organization. However, there are plenty of people who like those decisions handled for them and are willing to pay for it. I am not one of those people. Let them give to the United Way, and I'll give my way.

-JP

*emeleel* · #6 02-05-2002, 01:25 PM

My husband's former employer, ALFA Insurance, forces the employees to donate 1% of their pay to United Way. When he signed his application for work there, it was on the form that payroll contributions would be taken out. Not a check box, yes or no do you want this if we hire you, just a notice that it would be done. No way to not agree to it.

After hiring, if you tried to get out if, they made such a stink about it and HR didn't even know how to take it off (at least not the peons, I'm sure someone higher up could have done it) that you either felt like a heel for trying or it was too much trouble to pursue.

I called one year to ask if we could stop giving and the girl on the phone was rather taken aback that anyone would want to do that, and tried telling me that the company's Christmas bonus was their way of making up for the contributions. Some "bonus" huh? That was even more frustrating the last year that he was there because bonuses got cut almost in half - but the deductions sure didn't.

I still think sometimes about hiring a lawyer and suing the place to get back all those forced donations plus interest. We live hand to mouth, and while 1% may not seem like much to most of y'all, it was a big deal to us.

**Prepoia**[$] · #7 02-05-2002, 04:52 PM

It sounds like some things never change. When I worked at Pontiac Motor Division about 25 years ago, they always pressured us into donating to United Way too. We salaried employees had no choice (I believe that it was a minimum of 1% too.) I always resented that because only about 60 % of the donated money makes it through the paid employees of united way and to the actual charities. Plus I felt it must be illegal somehow to "force" us to give. If we didn't give, no promotions or perks.

Now, in my teaching job, we have a person for each building that collects for it and cheerleads the drive but we don't feel pressure to sign up for it. And I don't. I donate directly to Cancer Research; Hospice; Make a Wish; alzheimers; etc. and know that a much larger (if not all) of my money goes directly into charity use. I'm much happier. I find it amazing that the United Way and the corporations are still so "hand in hand".

frazzledspice · #8 02-05-2002, 06:55 PM

If the American Cancer Society or Girl Scouts of America collects $1 million in charitable contributions, it incurs administrative expenses.

If it receives $1 million from the United Way, it incurs no administrative expenses of its own.

Whether you give $25 to the United Way or to the Girl Scouts of America directly, there is an administrative cost involved.

It is actually more efficient for charities to receive large sums of money from the United Way.

I have occasionally felt guilty because I give one small donation to a charity and, over the years, they spend more in postage than the amount of the original donation. I once donated money to the Christian Brothers in NJ. I made this donation in memory of my son's sixth grade teacher, who died tragically in a car accident. They sent me mail for years...and my original donation had probably only been $10 or so. They weren't a high priority charity to me--I had made the initial donation because the teacher's family requested this particular charity.

Same thing with the Girl Scouts. I donated to their campaign fund this year--probably $25--because my daughter is a Girl Scout. I now get invitations to $50 a plate dinners, etc., all of which I ignore. But it aggravates me that they are wasting my $25 sending me solicitations because they assume I'll give another few hundred over the year (I won't.)

The United Way is also an excuse to telephone solicitors....They call about their particular charity, and no one gives to EVERY charity. I don't give to the March of Dimes, for example, because they support eugenic abortion.

I can always say: "We make a generous donation to the United Way, and your organization gets a small part of it."

poseidon · #9 02-05-2002, 07:13 PM

Fraz,

Even if what you say is true about administrative costs, I would guess that administrative costs at United Way are higher than administrative costs at the battered women's shelter. I find it difficult to believe my hand-delivered donation to my friend who is an administrator there carries much of an expense at all.

On top of that, and more importantly than administrative costs is the problem that I do not trust Mile High United Way.

Jeff

**AuntieEmma**[$] · #10 02-05-2002, 08:04 PM

I don't like United Way either. They had a major fraud scandal on the national level a few years ago. Maybe they've cleaned up their house by now, but who knows.

When I worked at Bank of America a long time ago, there was a lot of pressure to donate to United Way. It wasn't "mandatory" in the way some people are describing here -- it was more like what Jeff described, where there were departmental competitions, and a lot of peer pressure. I did sign up for the payroll deduction plan, but I don't think I would do it now -- I feel more immune to peer pressure these days than I did then, when I was very young, and also I've heard a lot more negative things about United Way since then.

The best way to donate, I think, is to give to specific groups that you're familiar with, especially small groups where every little donation counts.

**pluckyduck** · #11 02-05-2002, 08:28 PM

Count me as one who doesn't care for the United Way either.

I also wouldn't care to be pressured to donate to anything.

Melanie, I don't even understand how your husband's company can get away with that crap. I agree that it doesn't sound legal.

Jeff - stand your ground. (Of course, I know you will.

)

Andrea

poseidon · #12 02-06-2002, 01:23 AM

LOL you do know me too well. So does my supervisor, who knows better than to question me on items such as this. I've told them each time this gets brought up that I will not under any circumstances participate and if they "force" participation I'll force them to fire me.

I'll donate my money as I see fit, thank you. And I'll give the money directly to the charity of my choice, whom I trust to govern the funds I choose to give them.

United Way may have cleaned up their act since their local and national fiascos. However, they've yet to earn my trust.

And that, ladies and gentlemen, is what it all boils down to. I don't give money willingly to people I don't trust. I won't shop someplace I don't trust and I sure as @#$% won't donate someplace that I don't trust.

Jeff
who trusts everyone until they give him reason not to

**jgibson2**[$] · #13 02-06-2002, 01:41 AM

Add me to the list of non-supporters of the United Way. Supervisory level personnel at my hospital have no choice. They're told how much to fork over. I refuse to participate in a so-called charity which encourages such coercive tactics all over the country. We give plenty to charity. I don't feel the least bit guilty about round-filing that particular card when it crosses my radar.

My second reason for not playing their game is that administrative costs aren't the only thing deducted from your donation. They also set aside a percentage to make up for pledges which aren't completed. You have the option to designate a number of charities to receive the bulk of your donation or to choose ONE from their list to ban completely from even a penny of your contribution. You can't do both. This means that if you designate a charity, a portion of your donation may go to make up pledges to a different organization which you find appalling.

**pluckyduck** · #14 02-06-2002, 06:14 AM

Quote:

Supervisory level personnel at my hospital have no choice. They're told how much to fork over.

Man, I really am in the dark.

I had no idea this was going on. Reminds me why I would never make it in a Corporation. I'd blow a career over something like this because I wouldn't sit still for it. Do not tell me what to do with my charitable donations!

Andrea

**mjfrombuffalo**[$] · #15 02-06-2002, 10:29 AM

The Salvation Army, my employer, receives funds from The United Way. When I first started, we too were subjected to the "Let's have 100% giving!" pressure pitch. In a weird twist, we "civilian employees" were not only encouraged to give, but were encouraged to name The Salvation Army as our agency of choice for our donations when that option became available mid-90's.

Considering The Sal isn't one of the highest-paying agencies, and considering that the money would NOT have gone directly to our program (Social Services for Children) and clients (foster care children) but to the Divisional Headquarters for disbursement as they saw fit, many of us opted to write a check directly to our program and/or departments instead.

They stopped doing the "United Way Campaign Kick-Off Day" a few years ago and I haven't seen a memo or heard a word about the United Way here ever since.

mj