United Way

United Way History

The United Way movement has a long history that began in 1873 in Liverpool, England, with the idea that charities might work cooperatively to raise funds. The U.S. history is traced to Denver in 1887, although the Cleveland Chamber of Commerce advanced the concept of coordination, first by approving agencies for funding and later by creating a Cleveland Federation of Charities and Philanthropies (later Welfare Council) to include almost all local charitable organizations. E.L. Brilliant and D.R. Young note, “The concept of coordinated fundraising is straightforward. By avoiding duplication and competition, charities can exploit economies of scale, and use resources more effectively,” and they describe the first important role of the first federated funds as that of fiscal intermediary.

World War I gave impetus to the concept of combined fund drives, as War Chests became a popular way to raise money for causes that in some communities included the Red Cross, YMCAs, and other social agencies, as stated by E.L. Brilliant. In 1918, Rochester, New York, became the first community to use the name “Community Chest” for the concept of pooling money for charity. This early development took place in the context of Progressive-era social reforms and the Settlement House and Charity Organization Society movements that gave rise to the modern profession of social work. Brilliant traces aspects of each of these traditions in the burgeoning federated funds and their leaders, who in 1918 founded the American Association of Community Organizations.

By 1918, 14 federated funds had been established in the United States, and by 1950 the number had grown to 1,270. In many communities Welfare Councils of social agencies operated either within or in tandem with Community Chests. With growth and professionalism, the two types of organizations strengthened their roles in community problem-solving and social planning. Rapid growth of Community Chests also resulted from changes in federal tax policy. For example, in 1935, Congress passed legislation allowing tax-deductible charitable contributions by corporations, and in 1943 withholding for taxes and union dues opened the door for charitable contributions to be deducted voluntarily from individual paychecks.

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