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HomeMy WebLinkAboutUnited Way of KC - Free Tax Preparation Campaign V.1 a, off.. (CC., 0• y—.r ,rt e&;;. .t1 n- Rating Tool for 2009/2010 Funding Applications SECTION 1. Mary Ann: Pass/Fail: If all answers are yes, the application goes forward. If any answer no, the application review stops. Ye No ❑ Submitted before deadline? ❑ uestions answered on City supplemental application? ❑ KCommon Application Checklist—all items "yes"? COMMON APPLICATION CHECKLIST Yes No Cover pages r- #`41-5Agency Information and Questions 1-7. Ern Question 8 Organizational Experience (2 page maximum) ❑K❑ Question 9 Need for Your Program (2 page maximum): E' ❑ Question 10 Proposed Program/Service(6 page maximum) ( ❑ Question 11 Long Range Plan (1 page maximum) LI" ❑ Question 12 Budget (2 page maximum) Data Tables v ❑ Question 13 Number of.Individuals/Households Served Er ❑ Question 14a-c Performance Measures and Average Cost of Service ® . ❑ Question 15 Demographics (from all funding sources) ❑ Question 16 Program Staff ©� ❑ Question 17. Program,Revenue;& Expense-Budgets ❑ Question 18 Subcontracts Required:Documents L� 0 Proof of non-profit status . n Organizational Chart' . Agency/Organization Mission Statement ❑ ( Board resolUtiOn authorizing sybmittal of the ap lication (may be submitted up to 60 ^�_�� '.: days after application). Nl� !11 b Lam' fl List"of the current governing board and local board i applicable, (include name, position/title, City residence, length of time on the Board, and expiration of terms. Note any vacancies) FP' 111.-Board Meeting Minutes of last three board meetings of governing board and local board as applicable" El .0:Annual Budget' [6 ❑ Fi ancial Audit Cover Letter ❑ tVTinancial Audit Management Letter ❑ Financial Statement Verification of Non-Discrimination Policy Program Intake Form ❑ [ Sliding Fee Scale in PASS OFAIL uL�c\e�Rating Tool L ; , ...: Dratt of 4/15/08 H:\HS 08\09-10 Funding cycle\Rating TooI414financeupdate.doc SECTION 2. Karen & Dianne: All pre-applications Passed .. I No Score Rating Tool p. 2 Draft of 4/15/08 H:\HS 08\09-10 Funding cycle\Rating TooI414financeupdate.doc SECTION 3. Dianne: For informational purposes this year: Agency's Past Performance Past Funding History for last two funding cycles 2005-2008 (Circle CDBG or GF) Amount Allocated: 2005-2006 CDBG / GF 2007-2008 CDBG /GF Yes No ❑ ❑ Were quarterly reports on time in `07? ❑ ❑ Was first quarter report in '08 submitted on time? ❑ ❑ Did agency meet 100% of all the performance measures in 2007? If not— which ones did they not meet? ❑ ❑ Did agency submit an annual outcome report, on.time for `07? ❑ ❑ Was a monitoring visit done? If yes; were there any findings? Yes_ No ❑ ❑ Did agency staff respond to staff requests for information in a timely manner? (looking for a pattern, not one-time occurrences) in 2007? ❑ ❑ Did agency staff attend:the City of Renton contract workshop°in 07? ❑ ❑ Did agency staff attend the Joint City funding workshop in 2008? ❑ ❑ Was there key staff turnover in 2007? If so, what position(s) and how many? • No Score Rating Tool p. 3 Dr aaft of 4/15/08 H:\HS 08\09-10 Funding cycle\Rating TooI414financeupdate.doc SECTION 4. Staff check (Mary Ann and Dianne): make sure numbers in tables match. Score based on the number of boxes checked "Yes" Yes No ❑ ❑ #5 Total project costs need to match the totals on #17. ❑ ❑ #6 Total City funds requested for 2008 and requested for 2009 must match numbers given in table #17. ❑ ❑ Last column of#6 must match first column of#14C. ❑ ❑ Average cost of service per client for Renton;in#12C must match same in #14C ❑ LI Last column of#13 must match middle column of#14C. ❑ ❑ In #13 - column two percentages must add to 100%:. ❑ ❑ In #13 - if agency selected individuals or households, should be answered the same in question#15. ❑ ❑ #13 1st column numbers must match numbers on the top of#1,5. ❑ ❑ Three columns in #17,,,p`19 (Revenue Source) add correctly? ❑ ❑ Three columns in #17 p. 20`"(Program Expense) add;correctly? SCORE: / 10 Rating Tool p. Draft of 4/15/08 H:\HS 08\09-10 Funding cycle\Rating TooI414financeupdate.doc SECTION 5: Finance Subcommittee of Human Services Advisory Committee: Scores financial health of the agency Originally the thought was that this would be pass/not pass. However, it does not get to the financial health of the organization. 1. Level of Financial Statements without "going concern" noted in Auditor Cover Letter ❑CPA Audited 3 points ❑CPA Other/reviewed. 2 points ❑Internally prepared 1 point 2. Program Budget A) Is there a change of over 20% in the total program budget line on Table 17 Revenue Source between 2007 Actual and 2008 Budgeted? ❑Yes ❑No If yes, has this been adequately explained in question 12 B, "Changes to budget"? ❑Yes 0 Points ❑No -2 Points B) On Question 17, are the.totals for program.budget Revenue or Expenses off by more than $100? ❑Yes -3 points ❑No 0 points 3. Balance Sheet Strength, Does the program/agency,have a positive total net asset figure on the balance sheet?1 ❑Yes 1 point: ❑No 0 points 4. Balance Sheet :Liquidity,;, Is the current ratio at.least 1.10 on the Program /Agency Balance Sheet? (Current assets divided by current liabilities = current ratio). ❑,Yes 2 points ` • ❑ No 0.points 5. Diversified Funding Programhas a mixture of funding sources for 2007 as shown in Question 17, revenue source: ❑ At least 1 each City, Other Government Funds and Private Sources 3 points ❑ Has funding from at least two of the three types listed above. 2 points ['Only City funding sources, but receives funding from more than one city. 1 point SCORE: / 9 Rating Tool p. 5 Dra�ft of 4/15/08 H:\HS 08\09-10 Funding cycle\Rating Tool414financeupdate.doc 6. Human Services Advisory Committee: Scoresjquality of the application 0-3 a. Organizational Experience (score 0-3) Agency has track record of providing service (score 0-3) Staff has applicable/related experience in working with proposed program and/or training (score 0-3) Was there an explanation as to how the Board stays informed and connected about needs in South King County? b. Is the need in the City supported b, y data? (score 0—3) Is the data specific to Renton or to'South King County? (score 0 — 3) Is there a quantifiable need? c. How easily can Renton residents access the program? (score 0-3) Does the:0roposed outreach fit Renton or show knowledge of Renton?' (score 0-3) Were the language and cultural-needs of the clients addressed?- ,; (score 0-3) Does..the agency:propose to have subcontractors or partners? Are services accessible through 1) the organization or 2) the subcontractors/partners? (Circle one) d.`,yLong Range Plan , (score 0-3) Is a-long-range plan described, versus a strategic plan? (score 0-3) Does the plan list multiple funding sources for future funding?' '(score 0-3) Was evaluation of services mentioned in the plan? SCORE: / 33 Total Score: / 52 Rating Tool p. 6 Draft of 4/15/08 H:\HS 08\09-10 Funding cycle\Rating TooI414financeupdate.doc Agency Information .. Agency Name: United Way of King County Applicant Name and Address: /• Agency;Director:,,, United Way of King County ,i Jon Fine •C'v1 i , I Name ana'Title 72Q Second Ave / ,} 0 2f i. Seattle, WA 98104 ' , 2�.066-461-3728 08 A `.X•Are4odefTelephone ytiz f JFine@uwkc.org 206-461-8495 �,�;c ' El ail address(if available) i (Area Code)Fax Number Re uired signatures: signi 'g below, ou certify that the information in this application is accurate to the7 best of y ur nowl ge and at you ha e read the application, certifications, and appendixes. (SIGNA T BE IN I t LUE IN `t lay Ices .-----A.....,, ' 4 lam lot Sig> ature Board *den r ate Si natur of Agency Director/Date Pridted Name of Agency Board President Printed Name of Agency Director 1 ' Program Information : 1. Program Name United Way of King County Free Tax Preparation Campaign Contact Person (available to answer specific questions on this application) Lauren McGowan 206-461-6973 Name (Area Code)Telephone —• Address(if different than above) LMcGowan@uwkc.org 206-461-8495 E-mail address(if available) (Area Code)Fax Number 2. Program is New for our agency ❑An Ongoing Program x 3. Brief Description of Program (One sentence) United Way of King County provides free tax preparation and access to the Earned Income Tax Credit and other tax credits to help working families increase their incomes and create savings. 4. Where are services provided? (If different from agency location) Tax sites have been established at 15 locations throughout King County, including eight in South King County: Kent Alliance Center,Federal Way Multi Service Center,Renton Salvation Army, SeaTac Airport,(Village at A•igle Lake Community Center, White Center Salvation Army, White Center Assembly and ACORN in Burien 5. Total Program Cost: • Actual 2007: $240,000 Proposed 2009: $267,750 Projected 2008: $248,750 6. Total City Funds Requested for this Program: City Awarded 2008 Requested 2009* General Fund CDBG Total Requested** Auburn $6,000 F deral Way $7,500 Kent Renton $7,500 1 City Awarded 2008 - Requested 2009* General Fund General Fund Burien $4,000 dovington Des Moines Enumclaw SeaTac $6,000 ukwila $4,000 *Citi s on a two year funding cycle will renew 2009 awards to 2010 based upon performance and availability of funds. See Part I for city specific information. - **In Jude your total request for Auburn,Federal Way Kent and Renton. The source of funding will be determined by staff. United Way of King County Tax Campaign Page 2 7. Aency Contact Sheet Provide the following information for the agency and for the program requesting funds. Agency Contacts General Agency Name: United Way of King County Address: 720 Second Ave City/State/Zip: Seattle,WA 98104 Phone/Fax: 206-461-8495 Agency Web Address: www.uwkc.org Executive Director Name: Jon Fine Title: President&CEO Direct Phone: 206-461-3728 E-Mail: JFine@uwkc.org DevelopinentDirector Name: Lauren McGowan (or Grant Writer) Title: Manager of Asset Development Programs Direct Phone: 206-461-6973 E-Mail: Lmcgowanna,uwkc.org Finance/Accountant Name: Linda Snider (person preparing invoices) Title: Director of Accounting Direct Phone: 206-461-6712 E-Mail: Lsnider@uwkc.org Program Contact (Staff contact for contracting, reporting and program implementation.) Program Name: United Way of King County Free Tax Prep Campaign Staff Name: Lauren McGowan Title: Manager of Asset Development Programs Direct Phone: 206-461-6973 E-Mail: Lmcgowan@uwkc.org United W.y of King County Tax Campaign Page 3 Application Narrative Section 8. O GANIZATIONAL EXPERIENCE A. Efiperience United Way of King County(UWKC)has supported health and human services in King County, Washington since 1921. We exist to help people live better lives, improve their communities, and realize their dreams. Our mission is to mobilize our community in ways that no single agency, individual, or goverment can to enhance the ability of people to care for one another. UWKC is a community impact organ zation that specializes in identifying needs within the community and investing in long term soluti ns that improve both individual lives and the community in which we live. In 20 0 UWKC created the Out of the Rain Homelessness Initiative and committed to working with all of our c mmunity partners to end homelessness in King County. At its inception Out of the Rain identified pove y reduction as a core strategy to reduce the risk of people falling into homelessness and help people who are moving up and out of homelessness to become economically self sufficient. In 2001 UWKC launc ed the United Way of King County Individual Development Account(IDA) Program to provide low i come residents in our community the opportunity to save and invest in tangible assets such as home wnership, small business development and post secondary education. The UWKC IDA Program is now one of the largest programs in the country with over 900 people participating and 269 having made asset I urchases. In 20 2 UWKC began working with the Annie E Casey Foundation Making Connections Initiative to provi e free tax preparation services and access to the Earned Income Tax Credit to residents of White .-. Center and Boulevard Park in South King County. Over the past 6 years UWKC has grown from a - coalition partner in White Center to the lead agency of the United Way of King County Free Tax Prepartion Campaign,working in collaboration with over 40 community partners,has expanded the Free Tax Campaign to a countywide effort with 15 free tax preparation sites including six in south King Coun y. Unite Way of King County provides free tax preparation services and access to the Earned Income Tax Credi and other tax credits to help working families increase their incomes and create savings. The Free Tax Preparation Campaign allows low-income people to keep more of their hard-earned money and avoid payingl unnecessary fees for commercial tax preparation and "rapid refund" loans. Being financially stable reduces the risk of becoming homeless. In 2008, 370 volunteers dedicated more than 12,000 hours to the Tax Campaign,preparing 12,330 tax returns and helping return$14,366,248 in federal refunds to tax customers, including $4,572,840 in the Earned Income Tax Credit. The Free Tax Preparation Campaign saved customers more than $924,750 in tax preparation fees. B. Operational Structure Unite Way of King County is a 501(c) (3)non profit organization with 130 employees and a working Boar of Directors consisting of 41 members that represent a diverse cross section of our community. Jon Fine, President and CEO of UWKC,provides day-to-day direction for the organization. Mr. Fine has been president and chief executive officer of the United Way of King County since September 2000. Prior to this, he served as chief executive officer at the Seattle/King County Chapter of the American Red Cross. The management team reporting to Mr. Fine consists of six vice presidents who direct the Oper tions, Brand Management, Workplace Giving,Major Gifts, Human Resources and Community United Way of King County Tax Campaign Page 4 Service departments. The Out of the Rain Homelessness Initiative is part of the Community Services Department led by David Okimoto, Senior Vice President of Community Services. Out of the Rain (OOTR is directed by Vince Matulionis who has over 15 years experience working on homelessness and poverty related issues. The UWKC Tax Campaign is one of several programs that represent an overall strateg I of OOTR to reduce the risk of homelessness by helping people move up and out of poverty. Lauren McGowan is the Manager of Asset Development Programs and oversees all anti poverty strategies employed by Out of the Rain. Lauren has experience designing, implementing and evaluating programs for community development and poverty alleviation. Lauren is responsible for program development, budget d project scheduling. Courtney Noble, Free Tax Campaign Manager, is responsible for strategic program design, implementation and mobilization of community partners. She, along with the Tax Campaign Coordinator, is responsible for planning and executing the Campaign. The Board, currently chaired by Dan Brettler, CEO of Car Toys,provides organizational oversight and makes fnal decisions regarding budget and strategic direction. The Board reflects the diversity that exists within qur community(See the attachments section for current list of board members). Members of the board include distinguished business and philanthropic leaders, representatives of labor and government, community based organizations,the faith community, various ethnic communities and representative from the four King County regions. The Community Building Committee (CBC) is a committee of the board with direct oversight responsibility for all United Way programs, initiatives and community invest tints. Standing committees reporting to the CBC include community councils for the East,North, Seattle d South regions of King County and impact councils for each of the two UWKC community prioriti s, ending homelessness and helping all children become school ready. UWKC researches and prepares a comprehensive assessment of the community every two years as part of its fund allocation process to assist the Board of Directors,the impact councils, volunteers and staff in making critical decisions regarding the investment of resources. The assessment analyzes need and strengt s based on data from over 50 human service indicators and reports all information based on the regiona segmentation of South King County,North King County, East King County and the City of Seattle. The South Community Council which is made up of a broad cross section of community represe tatives,helps to provide localized data and analysis for the bi annual assessment and also meets regularli to identify emerging needs and trends that impact residents of South King County. The Chair of the Sou h Community Council is represented on the CBC and regularly provides information that is transmi ted to other members of the CBC and the Board. 9. Nee for Your Program A. Prollem Statement Analys s of Need: South Ding County has a population of approximately 650,000 people and contains 16 cities plus rural communities that are diverse in terms of ethnicity and culture and generally lag behind the remainder of the county in the distribution of income and wealth. United Way of King County's Community Assessnl ent reports that approximately 78,979 households (30% of all households in South King County) make under$35,000 per year which is significantly less than the 2006 HUD median area income of $62,400 for King County. Many people who do not live in absolute poverty still struggle to get by, living paycheck to paycheck, often working multiple jobs to make ends meet while attempting to feed and clothe their f ilies and maintain their place of residence. In additfon to living on insufficient wages and subsisting with little or no wealth, many low income househ Ids spend far too much of their income on basic financial service transactions such as tax prepara ion, check cashing, remittances,pay day loans and other retail services. It is estimated that a low United ay of King County Tax Campaign Page 5 income e individual or family without a bank account and earning$16,000 per year may spend as much as 2 to 311%of their gross income simply to get their salary through multiple transactions at check cashing establishments.I The Earned Income Tax Credit One di vailable and effective tool is the system of tax credits for the working poor, led by the Earned Inco 1 e Tax Credit(EITC). The Earned Income Tax Credit(EITC) sometimes called the Earned Income Credi (EIC) is a refundable federal income tax credit for low-income working individuals and families. For i dividuals, the Earned Income Tax Credit alone can account for a 30%to 35%boost in disposable inco a in some cases. At a peak credit of$4,824 in 2008,this is money that can make a real difference. Clai ing the Earned Income Tax Credit should be a simple process: low-income workers fill out an additilonal schedule when filing their federal income tax returns. However,many people do not realize they are eligible,they do not know how to file for it themselves, or they do not have access to reliable free tax preparation services and fail to claim the credit. As a result, IRS data indicates that only 75-80% of eligible individuals are claiming the Earned Income Tax Credit. Additionally, fees charged for filing taxes and accessing refunds through rapid anticipation loans (RAL's) erode the impact these credits have on working families and the communities in which they live. The igh Cost of Income Tax Preparation More than 60 percent of taxpayers who claim the EITC use a commercial tax preparation agency,paying, on average,$75 for simple returns and often, as IRS data shows,with no better accuracy than self prepalration.2 In addition many paid preparers sell Refund Anticipation Loans (RALs)that promise taxpayers their tax refund in one to two days (instead of 8-10 days if filed electronically,using direct deposit to a bank account). The average $200 fee for a RAL, if it is annualized, can amount to an interest rate as high as 800 percent.3 The Brookings Institution estimates that in 2003 over 5.4 million EITC recipients in 122 of the nations' largest cities utilized a RAL, at an aggregated cost of at least$740 million in po ential EITC benefits taken out of the pocket of poor families.4 1 B. Target Population The target population for the Tax Campaign is the working poor,people who work hard every day trying to make ends meet and support their families but who are rarely in a position to leverage the output of their work to save and plan for their future. The Campaign focuses specifically on serving under served populations, immigrants and refugees,people for whom English is not a first language,people with little or no connection to mainstream financial institutions and systems, and people who are currently or formerly homeless. Our primary outreach strategy is to connect with people who are able to benefit from the EITC although we welcome people who are not EITC eligible to come to our tax sites and take advantage of the free return preparation service as well. Each year we serve: • Tdx filers who need assistance filing basic individual tax returns, priority given to those earning less than$40,000 per year • Tax filers who may be EITC eligible but who have not previously claimed the credit Annie E. Casey Foundation. The High Cost of Being Poor, An Essay in Kids Count, 2003. 2 The Annie E. Casey Foundation, 2003, "The High Cost of Being Poor: Another Perspective on Helping Low- Inco le Families Get By and Get Ahead,"Annie E. Casey Foundation, Baltimore, MD, page 13. Wu, Chi Chi, Jean Ann Fox and Elizabeth Reunart, 2002, "Tax Preparers Peddle High Cost Tax Refund Loans," Consumer Federation of America and National Consumer Law Center, Washington, DC. 4 Beribe, Alan, "Step in the Right Direction; Recent Declines in Refund Loan Usage Among Low Income Taxp yers,"The Brookings Institution, Washington, DC, April, 2005. United Way of King County Tax Campaign Page 6 • Curijent EITC filers who need assistance preparing their taxes and who have previously received that assistance from a paid preparer • Immigrants, refugees and tax filers who need assistance obtaining an Individual Taxpayer Ide Itification Numbers (ITIN) in order to file a tax return. Custo er Profile • Me ian Adjusted gross Income - $18,931 • 37°/ reported a primary language other than English • 66°/ of customers are people of color o 14% Latin, Hispanic, or of Spanish Origin o 7%Asian o 18%Black/African American o 1%Native American o 6%Pacific Islander o 20% Other or Multi-Ethnic o 19% White/Caucasian o 15%Unknown • 32% of customers live in South King County • 500 customers were threatened with eviction or foreclosure in the last year • 2,3861 have dependent children under 17 10. PROPOSED PROGRAM/SERVICE A. Program Description UWKC has led an extremely successful free tax preparation over the past six years. Through a partners1ip with 40 community partners in the public and private sectors,the Free Tax Campaign has grown from a neighborhood program with two tax sites completing 677 returns in 2003,to a county-wide initiative enlisting 370 volunteers to complete 12,330 tax returns at 15 sites in 2008. The Fre Tax Preparation Campaign is one program in a broad range of community based strategies to help people maximize their income and to move toward wealth creation. The objectives of the Free Tax Campaign are to help low income working people in King County to: • Receive high quality free tax preparation services • Incr ase asset building skills and opportunities including credit and debt counseling, financial edu ation, homeownership counseling and individual development accounts • Increase disposable earned income • Incr ase utilization of financial institutions and instruments • Acc ss public benefits • Incr ase knowledge and utilization of tax benefits such as the EITC and Child Tax Credits (CTC) • Dec ease utilization of high cost financial services and predatory lending products such as refund anticipation loans (RALs) After six years,the Free Tax Campaign is perfectly situated to refine its asset building and outreach strategies to reach underserved constituencies throughout King County and help them, along with existing tax customers, increase their disposable income and build wealth. We are poised for this expansion because our experience has provided us with a clear understanding of how to maximize the efficiency of _ our services while creating a sustainable program with an increasing level of community ownership. Our plannin has been informed by the data we have collected from tax customers and best-practices from United y of King County Tax Campaign Page 7 aroun the country. The growth and changes we are planning for the program are contingent upon fundi g and include: • Adopt the Cash Coach model to provide intensive asset building outreach • Work with local cities and service providers to expand tax credit outreach and free tax preparation se ices to individuals and families who are homeless or at-risk of becoming homeless • E ance links to affordable banking services at tax sites through a partnership with King County's L w Income Credit Union • In roduce an on-site screening tool for public benefits • In rease number of people served to a projected 13,384 customers during the 2009 tax season • Increase EITC refunds by$1.5 million and total refunds by$3 million • Increase the number of volunteers to 400 Site Selection Site 1Qcation and hours of operation that are accessible to the target population are critical to providing effective service to the maximum number of customers and creating a successful campaign. Because of the high need in south King County, 6 of the 15 total Tax Campaign sites are located in that region. Tax sites Are open evenings and weekends to accommodate the schedules of working families. Each site is staffed by a paid site manager. Site managers have cell phones to communicate with customers who have quest'lons outside operating hours. Volu tears Volunteers are the engine of the program, carefully preparing each and every return. Free tax preparation sites are staffed with trained and IRS-certified volunteers with the necessary language and technical skills to provvide high-quality service to tax customers. Our volunteers speak over 40 different languages, and local outreach efforts reached targeted populations, including the Somali, Bosnian, Russian, East African, Vietn ese, African American and Latino communities. Mar eting& Outreach The primary marketing goal of the UWKC Tax Campaign is to inform people that there is a free,high quality alternative means of having taxes prepared that will help them"keep more of what they work for" and tl'at there are a variety of other benefits we can provide through the free tax sites. Effective and timel marketing is essential to program success as tax preparation is a seasonal event and paid tax preps ers with large marketing budgets are able to saturate the airwaves between December and April with ery targeted and appealing messages that attract customers to their locations. The UWKC Tax Campaign annually creates a range of informational materials to market the free tax campaign including: 160,090 flyers, brochures,yard signs and posters, and bus cards in over 250 Metro bus routes throughout King County. Brochures and flyers have key messages provided in English and 4 additional languages. Printed informational materials are disseminated through major networks that connect to low income populations including DSHS and Worksource offices, school districts, housing authorities,public libraries, churches, social service agencies and food banks. In addition 2-1-1 is the Statewide Information and eferral Source for free tax assistance. Asset Building Asset building is an essential component of the Tax Campaign's long-term anti-poverty strategy and is in alignment with a strength-based approach to achieving family economic success. For 2009,the Tax Campaign will implement an asset building strategy based on the lessons learned in the first six years and whera funding allows, switch from an information request and follow-up asset building model to an on- site support model. Funding from this grant will be utilized to hire a Cash Coach who has experience teaching financial literacy. Ideally this person will have outgoing personality traits, knowledge of the community referral process and a good "pitch"for the products he/she is promoting. By retaining and training a"Cash Coach"to provide specific services to tax customers at the site, we will access United Way of King County Tax Campaign Page 8 individuals and enable them to take action to improve their financial futures. Rather than offer an extensive `menu' of asset building programs that a customer can access later, the Cash Coach will offer three immediate action steps for customers. • The Cash Coach will present tax customers with the opportunity to put part of their refunds into U.S. Tre Isury Savings Bonds. In 2008,the Free Tax Campaign conducted a savings bond pilot study in whi h it offered one year U.S. Treasury Savings Bonds at one tax preparation site. At this single site cust mers purchased 112 Savings Bonds valued at$20,850. In previous studies, D2D Fund, a non rofit organization found that, when presented with opportunity to use part of their refunds to purc ase savings bonds, 6-7% of tax customers accepted. By offering a simple, small dollar inve tment vehicle with a low buy-in($50)that offers a competitive rate, the Cash Coach will present cust mers with a straightforward, easily accessible means to save. • The Cash Coach will be trained to pull a credit report and counsel the tax customer on repairing or imp oving his or her credit score. Bad credit is a determinative factor in enabling people to move up and ut of poverty, as a poor credit rating causes an individual who is already struggling to make ends meei to spend exorbitant amounts for basic needs such as transportation and housing. A bad credit scor1 can also prevent a consumer from accessing financial services,jobs and housing through the mainstream, forcing them to alternative, "fringe" or predatory services. • Finally,the Cash Coach will help our customer's access public benefits at the tax site through an onliike benefits screening tool. B. Performance Measures and Outcomes. The T Campaign will use the following performance measures to evaluate the success of the program. Data is aken from TaxWise software and client answers to questions on the intake survey, GOAL To redue the high cost of being poor for low income individuals and families, in South King County and elsewheie in the county, by providing basic financial services such as free tax preparation. Performance measure reported to Cities: Total EITC and Child Tax Credits Claimed Outcom 1 a: Increase disposable earned income for 12,000 income tax filers including 3,000 residents of South King County by April 15, 2009 • Indi,ator 1: Number of tax customers filing tax returns at no cost • Indi,ator 2: Number of clients applying for public benefits through tax site screening Outcom lb: Increase knowledge and utilization of tax benefits such as the Earned Income Tax Credit for 3,000 tag filers, including 1,200 residents of South King County by April 15, 2009 • Indi ator 1: Number of tax customers claiming EITC • Indicator 2: Number of innovative strategies/events to reach target communities (mobile tax events, part ership events with WorkFirst and housing authorities,among others) GOAL 2 To increase opportunities for low income individuals and families to save and accumulate financial assets that will help them move permanently up and out of poverty. Perform ce measure reported to Cities: The number of clients connecting with asset buildings services ,via a Cash Coach United Way of King County Tax Campaign Page 9 Outcome 2a: Increase utilization of financial institutions and instruments for 5,000 tax customers, including 2,000 South County residents by April 15,2009 • Indicator 1: Number of tax customers that make use of direct deposit • 1ndicator 2:Number of customers that use free check cashing services for their refunds • I dicator 3:Number of clients joining the low income credit union Outc me 2b: Increase asset building skills and opportunities for tax customers and south King County resid nts by April 15, 2009 • IIdicator 1: Number of clients meeting with Cash Coach • Indicator 2:Number of clients purchasing Savings Bonds • Indicator 3: Number of clients receiving credit reports • Indicator 4: Number of clients who request additional asset building follow-up by marking it on their intake form C. Staffing Plan & Evaluation Staffing Plan. • Lauren McGowan,Manager of Asset Development Programs at UWKC,has over 5 years' experience d signing, implementing and evaluating programs for community development and poverty a leviation. Lauren is responsible for program development and implementation,budget and project sheduling. Lauren spends 20%of her time on the Tax Campaign. • ourtney Noble, Free Tax Campaign Manager, is responsible for strategic program design and niobilization of community partners. This is a 1.0 FTE year-round position,with 100% of staff time devoted to the Free Tax Campaign. Courtney is a graduate of Yale University and NYU School of Law. -- • Patrick Kelley, Free Tax Campaign Coordinator, is responsible for developing and implementing tax a ste operations. He recruits,trains and supports volunteers for the Campaign and implementing community outreach efforts. Mr. Kelley spends 100% of his time on the.Free Tax Campaign. Patrick i a graduate of Whitman College and has worked with UWKC for nine years. • A'ne Smiley is the Senior Tax Specialist assigned by IRS SPEC (Stakeholder,Partnership, Education, and Communication)to UWKC's Tax Campaign as the Relationship Manager. Her responsibilities with the Tax Campaign include: training volunteers, site managers and staff;providing expert tax advice; exploring tax liability issues; reviewing pertinent demographic data and coordinating a multi- tiered marketing and outreach program. Anne devotes 50%of her time to this project. • Tax site managers are hired on a temporary basis to staff the tax sites during their operation. Site managers are typically accounting program graduates, and are always selected on the basis of additional skills and experience (language knowledge, volunteer management,multi-cultural s nsitivity, among others. Site Managers participate in weekly full-day training sessions from i ovember-January that cover tax law, software, e-filing, volunteer management, cultural competency d communication skills. • Iolunteers are recruited in September for service in the following year's tax season. We expect to rdcruit and train close to 400 volunteers for the 2009 tax season. The Campaign has made high quality tax preparation a top priority. As such, we have worked with our IRS Relationship Manager to develop a robust training program for volunteers. Evaluation The design, collection, management and reporting of data for this project is essential to providing quality tax and asset building services and to the future success and growth of the Campaign. Our Campaign is part¢f a national network coordinated by the Annie E Casey Foundation and the National Community Tax Coalition to employ standardized data collection tools and to collect and report on a uniform set of United Way of King County Tax Campaign Page 10 data po'nts. Through this national collaborative effort we are able to assess the effectiveness of our campaign on reaching target populations and achieving results on both a local and national level. Inform tion from TaxWise software at each tax site is transferred to the Campaign staff on a weekly basis. ?rom the TaxWise software, we can track our progress, make mid-course corrections, and comet nicate our results or areas for improvement to our site managers,tax preparers, outreach volunt ers and partners. The cumulative background information,tax results and asset building data are used internally to gauge periodic success relative to benchmarks and goals. The Tax Campaign also encourages volunteers, service jroviders and site hosts to complete evaluations during and after each tax season and participate in focus gioups to provide feedback on their experiences with the Tax Campaign. D. Differences in Service Delivery by City UWKC currently offers free tax preparation, electronic filing and asset building opportunities in each of the cities where we are applying for funds except for Tukwila. The number of hours a site is open and the number of volunteers providing service are based on funding, capacity, space availability and demand for service. Currently, all of the tax sites are at capacity and need additional operating hours and/or additional volunteers in order to meet the demand for service. Below iL a table of current and proposed levels of service in each city. We are also proposing to hire a Cash Coach, as described earlier, in several cities to increase the connections tax customers have to public benefits and asset building opportunities. City 2008 operating Proposed 2008 Proposed Proposed 2009 hours per 2009 hours volunteers 2009 Asset Building week per week per week volunteers Staff"CASH' per week COACH" Auburn 8 8 12 16 x Bt}rien 8 8 6 12 FeEleral 6 12 12 24 x Way Kdnt 12 12 20 25 Renton 12 12 15 25 x SeaTac 16 (2 locations) 16 12 25 x Tukwila 0 8 0 10 II. LONG RANGE PLAN The Free Tax Prep Campaign has established the following long range goals: • Continue to reduce one of the high costs of being poor for low income residents while increasing the number of people who receive free tax preparation assistance. • Incrase the disposable income of low income residents by increasing the number of people who claim the EITC and other tax credits • Increase the disposable income of low income residents by increasing the number of eligible people that utilize public benefits • Incr ase the market share of the low income population we serve such that paid preparers will con der lowering their prices for basic tax services to retain customers. United Wa of KingCountyTax Campaign Pa a 11 Yg • S pport local Economic Development: By putting money into the hands of low-income families and, through them, into the overall community,the Free Tax Campaign puts federal dollars to use for local ec nomic development. A robust campaign to promote full access to the EITC by working families is of merely justified as socially responsible,but actually could more than pay for itself when co sidering the economic impact on the community and the fiscal impact on local cities. Several studies have shown that EITC monies are typically spent by recipients in the communities where they reside and that two thirds of the money returned is spent locally on consumer goods and services.5 This means that, in addition to helping families meet their basic needs, the EITC generates sales tax revenues that benefit the state and cities and encourages businesses and job growth. In addition to these clear economic gains, increased EITC participation decreases the burden placed on government support systems and services,many of which carry high administrative costs. People who are able to maximize their income through free tax preparation are financially more stable and less dependent on assistance programs, and are more able to maintain their jobs, stay in their homes and care for their families. Additional research has shown that recipients of the EITC also use their refunds to pay off debt, invest in education, and secure decent housing,thus enhancing their economic security and promoting economic stability in their neighborhoods.6 One off the keys to achieving these goals is building a diversified fund base that allows for program sustainability and expansion. We believe that a sustainable financing structure for the Tax Campaign is one ir_i which each tax site is funded one-third by United Way of King County, one-third by the city where the site is housed and one-third by philanthropic, state and federal sources. The Tax Campaign has ongoing funding commitments from UWKC, CTED, City of Seattle, and several financial institutions. Another key to achieving these goals is enhancing partnerships in the public, private and non profit sectors to increase the networks through which this program is marketed and enhance the ability of the Campaign to provide services to more people. Free tax preparation, along with its companion services, is a relatively low cost high yield investment that demonstrates immediate and significant positive outcomes and helps the people most in need of services to become more financially self sufficient. Our challenge is to increase the number of community partners that are willing to invest in this Campaign and increase the numbr of partners who communicate the basic message to constituents within their communities. 12. BUDGET A. Budget Request Narrative United Way of King County is requesting$6,000 from the cities of Auburn and SeaTac, $4,000 from Burien and Tukwila and $ 7,500 from Federal Way and Renton to support the Free Tax Preparation Campaign. Funds will be utilized to maintain the current levels of services (marketing, outreach, management and staffing), and increase the volunteer capacity at each of the sites. Funds will be used to expand operating hours at the Federal Way location and establish a new site in Tukwila. Funds will also be used to hire a Cash Coach to connect customers to asset building opportunities at several of tax sites. B. Ganges to Budget There are no significant changes to the budget for 2009 other than the addition of the Cash Coach and a new tfl. x sites in Tukwila both of which are contingent upon funding. 5 Texas Perspectives Inc.,2004"2004 Update:Increased Participation in the Earned Income Tax Credit in San Antonio," prepar d for City of San Antonio,page 7 Texas Perspectives Inc.,2003,page 1. United Way of King County Tax Campaign Page 12 C. Cost per Service Unit(s). You should provide an estimate of your cost per service unit provided by the program you propose. Explain how your cost per service unit was determined. These should be based on the total cost of the program and the total number of clients served, not just the funds requested. You have th option of providing a cost per service unit for each separate service provided within the program. Cost Per Service Unit: $20.17 Explanation of how determined: In 2008 the Tax Campaign served 12,330 customers with a budget of$248,750. We estimate our cost per service unit to be $20.17. United Way of King County Tax Campaign Page 13 NUMBER of INDIVIDUALS/HOUSEHOLDS SERVED BY PROGRAM ❑ Individuals? or x Taxpayers served (Check which applies and use for reporting all demographics.) Unduplicated *Unduplicated Number of all Clients Served by Clients Served All Funding Sources with Funds Requested 2007 2007 % of column 2008 2009 2009 (Actual) 1 clients (Actual) (Projected) (City Requested served by Funding Only) City Auburn 310 3% 379 429 143 I BurienI 64 0.6% 100 200 100 Covington 14 0.1% 7 15 1 I Des Moines 95 1% 96 200 I Enumclaw 0 0% 0 0 Feder)1 Way 500 4.4% 532 700 233 Kent 821 7.2% 873 900 Rent+ 550 5% 566 650 216 SeaTalc 200 1.8% 262 400 133 I Seattli 5,100 45% 6,063 6,300 Tukwila 71 0.6% 75 200 100 I Other 3,563 31.6% 3,377 3,390 , .;;-..''-, ' "' 100% Total 11,288 (This column 12,330 13,384 must total 100%) United Way of King County Tax Campaign Page 14 Agency: UWKC 14. Performance Measures (Data Table) Program: Tax Campaign 14a. Service with 2009 Requested Funds Proposed Performance Measures as defined below. A) Refunds Claimed B) Asset Building C) Auburn $300,000 30 Burien $200,000 30 Covington Des Mores Enumclaw Federal Way $400,000 60 Kent Renton $400,000 60 SeaTac 40 $250,000 Seattle Tukwila $200,000 NA ),41S-•::POtOilliiiiee:'IqeaSures1009',N*14:Coied with funds requested City Funding Only Title: Brief explanation: Total EITC and Child Tax Credits Claimed A) Refunhds Claimed The number of clients connecting with asset buildings services via a B Cash Coach. We will measure the total number of savings bonds ) Asset Building purchased, credit reports pulled and applications for public benefits. C United Way of King County Tax Campaign Page 15 Agency:UWKC , 14 Performance Measures (Data Table), Cont. Program:Tax Campaign ' I 14c. Average Cost of Service Unduplicated Clients Served with Funds Average Cost of Service per Requested 2009 Requested 2009 Client (Same as last column of (Same as last column of Column 1 divided by Column Question 6) Question 13) 2 Example: $5,000 45 $111.11 Aubulrn $6,000 143 $41.96 Burien $4,000 100 $40 Covington Des Moines EnumIclaw Federal Way $7,500 233 $32.19 Kent Renton $7,500 216 $34.72 SeaTac $6,000 133 $45.11 Seattll Tukwila $4,000 100 $40 United Way of King County Tax Campaign Page 16 Complete Question 15 with 2008 Actual numbers reported in column 1 of Question 13. Agency:UWKC 15. Demographics (from all funding sources) (Data Table) I Program: Tax Campaign crl ce 0 cu o .0 ce che.rit:Resfclene , o cn a) 0 a) ct 0 CD cn Unduplicated. (checic one) t1itlidi:Vidu4s'„;, '•' LIZ c..) vp CN1 C-- c:N <=> Cn cn t`••• 1/40 \0 CN1 v;:. 0\ oo kr) cv vo' oo" 1011:001clitinc4li*LOVeN.,Data Oot C0110.00.br;Cifk*tW till*4V0di*it AGi:0!$1S,931; 30%of Median or Below 50%of Median or Below 80%of Median or Below Above 80%of Median Unknown TOTAL :20000: iData Not Collected Male • Female TOTAL .Age: Data Not Collected : ,.., ,,',',;;::'.;:, !..,t.:::.;.,:,,,.:,.- :i,,:.:.', -.''',.* ,,, !:. !=' : : ,),.:: ' "' '.':::'. -,'::..1::, - :'' ',..',:. -,•,',.: :,''::::' .: : , .,".''- 0-4 years 5- 12 years 13- 17 years 18-34 years 35-54 years 55-74 years 75+years Unknown TOTAL Ethnicityt( Asian 14 4 1 5 0 55 48 57 4 650 4 842 Black/African American 47 12 1 _26 0 125 198 123 23 1514 27 2069 Hispanic/Latino(a) 57 25 1 23 0 102 162 109 40 789 9 1317 Native 9 0 0 1 0 6 11 7 5 81 1 121 American/Alaskan Pacific Islander 13 3 0 11 0 28 49 48 22 472 1 647 White/Caucasian 136 32 2 10 0 101 189 107 40 1306 10 1933 Other/Multi-Ethnic 103 24 2 20 0 115 216 115 128 1251 23 1997 TOTAL 379 100 7 96 0 532 873 566 262 6063 75 8957 Female'-' . . Riticled 12: ''', ;':% ": NA NA NA NA NA NA NA NA NA NA NA NA -.1tOtistb4E, 14*Al?41)gl,Ciiiik,,Iiiiiin:: - NA NA NA NA NA NA NA NA NA NA NA NA 1.4*ItOttigpin :: :::, 127 49 2 48 0 215 348 218 95 1664 37 2803 Speakingl: * Check Individual or Household,which should be the same as checked in Question 13. Unduplicated means count each client only once per calendar year. This should match the number served by City in the Actual 2007 column of Question 13. The 'total"co umn will be different from Question 13 since the"other"column is not included due to space limitations. United Way of King County Tax Campaign Page 17 16.PROGRAM STAFF(DATA TABLE) In this data table, record the number of full-time equivalent(FTE)paid staff and volunteers for this program. FTE means a 40-hour week throughout the entire year. For example, if you enter"5"in the box for Nrunber of Volunteer FTEs,this would mean that you have, on average, five volunteers assisting your program at all times (assuming a 40-hour week). If you know only the total number of hours contributed by all volunteers for this program, simply divide that nuumber by 2,080 to find the total FTE number. For example: 5,000 volunteer hours over the course of a year, divided by 2,080 equals 2.4 FTEs. 2007 2008 2009 (Actual) (Budgeted) (Projected) Tot 1 Number of Staff(FTEs) 2.5 2.5 3 Number of Volunteer(FTEs) 4.8 5.8 6.5 Actual Number of Volunteers 300 370 400 United Way of King County Tax Campaign Page 18 Agency:UWKC 17.PROGRAM REVENUE BUDGET(DATA TABLE) Program:Tax Campaign Revenue Source 2007 2008 2009 (Actual) (Budgeted) (Projected/ Requested) City Funding(General Fund& CDBG) • Auburn $5,000 $6,000 • Burien $4,000 • Covington • Des Moines • Enumclaw • Federal Way $7,500 • Kent • Renton $7,500 • SeaTac $6,000 • Seattle $63,750 $63,750 • Tukwila $4,000 • Other(Specify) • Other(Specify) Other Government Funds • King County • Washington State $25,000 $20,000 • Federal Government(Office of $50,000 Community Services) $50,000 NA • Other(Specify) Private Sources ;z'vt2: ki`^AsinA e „ 1:. .. :;t:;' •.•vs. ... .faP,tt:'.,. '�I:;K',wY;.:, f.z.:s.7, a�:di'S� • United Way(grants& designated donors) $75,000 $25,000 $49,000 • Foundations and Corporations $115,000 $80,000 $100,000 • Contributions (e.g., Events, Mailings) • Program Service Fees (User Fees) • Other(Specify) TOTAL PROGRAM BUDGET $240,000 $248,750 $267,750 United Way of King County Tax Campaign Page 19 17.P$OGRAM EXPENSE BUDGET,CONT. Agency: UWKC (DATA TABLE) Program:Tax Campaign Expenses 2007 2008 2009 (Actual) (Budgeted) (Projected) Personnel Costs ,gym• Salaries $106,590 $100,563 $118,055 • Benefits $29,517 $27,655 $32,465 • Other 5,.'•g,-.x.t .9 X's. '::tr. :,=f.�': i'.d;` .=R:. :+,<:e ,',y .vFjrti.;Tr ;ti;.cy m .";,r, Opelrating and Supplies • Office/Program Supplies $8,307 $7,000 $7,000 • Rent and Utilities • Repair and Maintenance • Insurance • Postage and Shipping $1,000 $2,000 $1,000 • Printing and Advertising $5,848 $2,500 $2,500 • ' 'elephone $1,000 $1,000 $1,000 • Equipment $1,017 $1,000 $3,000 • Conference/Travel/Training/Mileage $4,000 $5,000 $5,000 • Dues and Fees • Professional Fees/Contracts Site $60,000 $65,000 $71,000 Managers • Direct Asst. to Individuals • Administrative Costs • Other Asset Building Outreach and $2,004 $18,032 $7,000 poaches • Volunteer Appreciation/Materials/Training $8,403 $5,500 $5,500 • Marketing & Outreach Campaign $10,000 $10,730 $8,948 • Staff Mileage &Parking $3,366 $3,500 $3,500 • TOTAL PROGRAM EXPENSES $240,000 $248,750 $267,750 Net Profit(Loss) 0 0 0 (revenue-expenses)= United Way of King County Tax Campaign Page 20 Agency: UWKC 18. SUBCONTRACTS(DATA TABLE Program: Tax Campaign List all�he a encies ou will be subcontractin with for this ro ram. Provide the agency name in the first g Y g p g g Y column, a description of the contract/service in the second column, and the contract amount in the third column Do not list agencies you coordinate with on a referral only basis. Indicate not applicable if you do l of subcontract for any part of this program. Subcontracting Agency Specific Subcontracted Activities Contract in the Operation of Your Program Amount Not Apblicable r � United W.y of King County Tax Campaign Page 21 �'l IRS D Inetet ,y artmrnalReentvenue of the TreasuryService In reply refer to: 0437772883 OGDEN UT 84201-0038 Oct . 19, 2007 LTR 4168C EO 91-0565555 000000 00 000 00019994 BODC: TE • UNITED WAY OF KING COUNTY 720 2ND AVE SEATi'LE WA 98104-1702206 A T367 Employer Identification Number: 91-0565555 Person to Contact : S. Milligan Toll Free Telephone Number: 1-877-829-5500 Dear Taxpayer: This is in response to your request of Oct . 10 , 2007, regarding your tax- xempt status . Our records indicate that a determination letter was issued in May 1953 that recognized you as exempt from Federal income tax, and discloses that you are currently exempt under section 501(c) (3) of the Internal Revenue Code. Our records also indicate you are not a private foundation within the ' meaning of section 509(a) of the Code because you are described in. section(s) 170(b) (1) (A) (vi) . Donors may deduct contributions to you as provided in section 170 of the Code . Bequests, legacies, devises, transfers, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code. If you have any questions , please call us at the telephone number shown in the heading of this letter. Sincerely yours, V Deborah Bingham Accounts Management I • �m""" ,. �°:.a a „�s <c• • ^1\ finI. . .''•,- :�:a; ; :� ,' - a �. tea,. >I,i -a-g .- . ' d '4T "a. " , o � . ^� .,0¢ a I ° y' a: � ` ° �. Y;" a v,}', a ,a � "� •a : L : aq^: ':i. q;#: i • ,�� � • ," �$' - o*"i . a f . � �. ';,age&. • _ " t a ,t aM 1 '">. ,4°Lts` T. S _i> a . ° .Y c., a .a. 't4* v � S A •t .�<x«�. ;aye. t. f , ° , M, President/Chief Executive Officer _ Executive Assistant to the President/CEO Jon Fine Karen Howells 1 I I I I Chief Operating Vice President Brand Vice President Vice President Senior Vice President Officer,Operations Management/ Fundraising Human Resources Community Services and Administration Advertising Jon Doll f Yearby David Okamoto Mike Pete Chras Hynes I ast Edited on April 29,2008 S:�LIBRARY�Human Resources\2008 UWKC Organization Chart € ° h t'S t.v 3 1 ', o,,�..,. ..s�r'.v..3. i ._%�."-_, � tl�'i` as>�""` or ] :—. , ''' e a : F _ €' • -:-"s Z ; i+}} ..il .�sr i. '•'r'°—'e'[ ,t ,i"j� {' '.I:;t -:x± .. _ y3 vry ,Ef'ttlEi• �.� v�.: >S .1�1�c .�' a.�t���„:� ��d�t ��7».i�,m� E, -_.,...,.. «..,.ev -.. ,.W-._..a.,..,...-_'W___•_......-......a.. _,.._,._.....�..a......._ _._....w_ .._ .......... ._........m.. ° .. _.,.....,>_..,r........... ......._.-._....,_..,.....«.-_..,...w...,.._......-...w..•.3 . Senior Vice President Community Services David Okimoto • Director,Volunteer Centerr Director,Homelessness Initiative Director,School Readiness SOAR Program Director Liahann Baru�ennan Vince Matulionis Karen Howell Clark Harla Tumbleson Program Manager,Out Manager,Asset Development Program Manager,School Volunteer Initiatives Manager _ of the Rain Programs — Readiness Program Manager,SOAR Louis Mendoza Vacant Lauren McGowan Stacy George Deborah Gardner Manager,Campaign to Volunteer Initiatives Manager Early Learning Volunteer End Chronic Carolyn Cunningham Earned Income Tax Credit Coordinator Program Manager,SOAR Homelessness (EITC)Manager Isidro Rodriguez Mercedes Cordova-Hakim Neil Powers Courtney Noble Volunteer Initiatives Manager Nikki Russell Individual Development Earned Income Tax Credit — SOAR Program Support Account(IDA)Program — Program Coordinator Becky Hamrick Terra Holcomb Patrick Kelley Volunteer Program Coordinator Derek Wcntorf - S:\I.IBRARY\Human Resources\2008 UWKC Organization Chart . I ast Edited on April 29,2008 United Way TM MISSION STATEMENT United Way of King County United Way of King County mobilizes our community in ways that no single agency, individual or government can to enhance the ability of people to care for one another. April 15,2008 Unified A Way iiip TM United Way of King County 2007-08 BOARD OF DIRECTORS Alston, Christopher M. Foster Pepper PLLC ( 008)** 1111 Third Avenue,#3400 (w) 206-447-2906 3 y ars Seattle 98101-3264 (f) 206-749-1904 alstc@foster.com Badshah,Akhtar Senior Director of Community (2008) Affairs 3 years Microsoft Corporation One Microsoft Way, 8/1440 (w) 425-722-6653 Redmond 98052-6399 (f) 425-936-7329 akhtarb@microsoft.com Been,Rob Human Services Manager (2b08) Office of the City Manager 3 yel rs City of Shoreline 17544 Midvale Avenue N (w) 206 546 1933 Shoreline 98133-4921 (f) 206-546-1524 rbeem@ci.shoreline.wa.us *Bis1esi,Michael Director, Center for Nonprofit Chair, Community Building and Social Enterprise Committee Seattle University (20108) 901 12th Avenue, Casey Bldg#203 (w) 206-296-5435 3 years Seattle 98122 (c) 206-351-2550 bisesim@seattleu.edu (f) 206-296-5402 Bonebright,Jessica Research Director (2009) SPEEA-IFP 1'h Local 2001 2 years 15205 52nd Avenue S Seattle 98188 (w) 206-674-7363 jessicab@speea.org *Brvler,Dan Chairman&CEO Board Chair Car Toys (w) 206-443-0980 (2008) 20 West Galer Street Ext. 220 3 years Seattle 98119-3357 (f) 206-374-0624 dbrettler@cartoys.corn Brotman,Jeffrey H. Chairman of the Board Chair, Campaign Board Costco Wholesale ex-officio 999 Lake Drive (w) 425-313-8159 Issaquah 98027-5367 (f) 425-313-6592 jbrotman@costco.com Chow,Selina Operations Manager (2009) Aging&Disability Services 2 years Human Services Department City of Seattle PO Box 34215 (mailing) (w) 206-684-0646 Seattle 98124-2415 (f) 206-684-0689 (office) Seattle Municiple Tower 700 5th Avenue, 51st fl s elina.ch ow(a,s eattle.gov Earl,Joni CEO (2010) Sound Transit 1 year 401 South Jackson Street Seattle 98104 (w) 206-398-5450 earlj( soundtransit.org Faris,Ph.D.,Jack President (2008) WBBA 3 years 2324 Eastlake Ave E,Suite 500 Seattle (w) 206-624-1967 jack@washbio.org 98102 (f) 206-628-0899 Fersch,Rick Executive Director of Stewardship 2 years (2009) and Development Archdiocese of Seattle (w) 206-382-4563 910 Marion Street (f) 206-382-3495 Seattle 98104-1299 (h) 206-232-4578 rickf@seattlearch.org Freiboth,David Executive Secretary-Treasurer (2010) Martin Luther King Jr. County 2 years Labor Council,AFL-CIO 2800 First Avenue,Ste 126 Seattle 98121 (w) 206-441-8510 davidamlkcic.org Fulton,Daniel S. President and CEO (2008) Weyerhaeuser Real Estate Co. 3 years EC3-3B9 P.O. Box 9777 (w) 253-924-7610 Federal Way 98063-9777 (f) 253-924-2134 dan.fulton@wreco1.com 2 • Hatch,Cathi President&CEO (2008) ZINO Society 3 years 411 University Street,Suite 1200 (w) 206-621-0466 Seattle 98101 (f) 206-621-1070 c.hatch@zinosociety.com H 'nisch,Mike Executive Director (2 08) Kent Youth&Family Services 3 y ars 232 2nd Avenue S,Ste 201 (w) 253-859-0300 Kent 98032-5862 (f) 253-859-0745 mikeh@kyfs.org *Hildebrand,Sheryl A. Managing Partner,Seattle Treasurer/Chair,Finance Committee Deloitte (2108) 925 4th Avenue,Suite 3300 (w) 206-716-7552 Seattle 98104-1126 (f) 206-965-7552 shildebrand@deloitte.com Hughes,Mike Executive Vice President- (2010) Insurance Operations 1 year SAFECO Insurance Company PO Box 34690 Seattle 98185 (w) 206-925-1457 michug@safeco.com Jeffrey,Jr.,Robert Publisher (2010) Colors NW 1 year 1319 Dexter Avenue N, Suite 190 (w) 206-'111-9251 Seattle 98109-3541 (f) robertj@colorsnw.com Lod,Ted President/CEO (2008) Humanities Washington 3 ye rs 615 2nd Avenue,Suite 300 Seattle 98104-2200 (w) 206 682 1770 ted@humanities.org *M�drid Ph.D.,Sandra E. Assistant Dean for Students& PastlBoard Chair/Chair Governance Community Development , Committee School of Law (2009) University of Washington 1 ye r 385 William H. Gates Hall Box 353020 (w) 206 543 0199 Seattle 98195-3020 (f) 206-543-5671 smadrid@u.washington.edu *M kell,Eric M. Senior Vice President Energy Chlir,Audit Committee Resources (2009) Puget Sound Energy,PSE-12 2 years 10885 NE 4th Street (c) 425-466-5655 P.O.Box 97034 (w) 425-462-3595 Bellevue 98009-9734 (f) 425-462-3300 eric.markell@pse.com 3 *McHenry,Jr.,Gordon A. Director, Corporate Strategy& (2010) NW Region 1 year Global Corporate Citizenship (w) 206-655-7080 The Boeing Company (f) 206-655-6765 P.O. Box 3707 MC 14-24 (h) 206-722-7775 Seattle 98124-2207 (c) 206-931-8547 gordon.a.mchenry@boeing.corn *McReynolds,Neil L. President (2008) McReynolds Associates Inc. (c) 206-310-2607 3 years 1200 5th Avenue,Ste 1800 (w) 206-621-7272 Seattle 98101-3128 (f) 206-956-0863 nmcreynolds@bdv11c.com Nordstrom,Molly 4404 52nd Avenue NE (h) 206-523-7020 (2009) Seattle 98105-4936 (f) 206-523-0919 2 years blakemolly@aol.com Oglesby,Roger Editor&Publisher (2008) Seattle Post-Intelligencer 3 years P.O.Box 1909 (w) 206-448-8204 Seattle 98111-1909 (f) 206-448-8292 rogerogles by@s eattlepi.com Peterson,Richard 4220 E Lynn St,#1 (2009) Seattle,WA 98112 (h) 206-708-7337 2 years (c) 206-604-2255 Rahr,Susan Sheriff,King County (2010) King County Sheriff's Office 1 year 516 Third Avenue Seattle 98104 (w) 206-296-4155 susan.rahr@metrokc.gov *Rice,Norman B. Daniel J. Evans School of Public Board Chair-Elect/Secretary Affairs (2008) University of Washington 3 years 228 Parrington Hall (c) 206-686-5222 Box 353055 (w) 206-221-3893 Seattle 98195-3055 (f) 206-685-9044 normrice@u.washington.edu normanrice@comcast.net Shaw,Greg Director of Advocacy&Policy, (2009) U.S. Programs 2 years The Bill&Melinda Gates Foundation 1551 Eastlake Avenue E Seattle 98102-3706 (w) 206-709-3206 Mail to: P.O.Box 23350 98102-0650 (f) 206-709-3199 greg.shaw@gatesfoundation.org 4 Smith,Al Partner (2008) Perkins Coie 3 years 1201 3rd Avenue,Suite 4800 (w) 206-359-8410 Seattle 98101-3099 (f) 206-359-9410 adsmith@perkinscoie.com Sta n ton,John Chairman& CEO 2007 Campaign Chair Trilogy Partners exl ofcio Pacific Plaza Building 3years 155- 108th Avenue NE,Suite 450 (w) 425-586-8383 Bellevue 98004-5949 (f) 425-458-5999 john.stanton@trilogy-partners.net Solunano,Karen Marcotte 1419 7th Avenue West (2010) Seattle 98119 (h) 206-282-2970 1 y ar solimanona,speakeasy.net Str us,David H. President&CEO (2009) Fortune Bank (w) 206.254-7260 2 years 1201 Third Ave,Suite 700 (c) 206-953-9238 Seattle 98101 (h) 206-953-9238 Ds traus@fortunebankwa.corn *Su dborg S.J.,Stephen V. President (2108) Seattle University 3ye4rs 901 12th Avenue (w) 206-296-1891 Seattle 98122-1090 (f) 206-296-6200 Mailing address President's Office Seattle University PO Box 222000 Seattle 98122-1090 sundborg@seattleu.edu Tat-,Yvonne Director of Human Resources (20110) City of Bellevue 1 year 11511 Main Street Bellevue 98004 (w) 425-452-4066 Mail to: P.O. Box 90012 98009-9012 (f) 425-452-4071 ytate@ci.bellevue.wa.us Torres,Alex Senior Corporate Counsel (2010) InfoSpace 1 year 601 108th Avenue,Suite 1200 Bellevue,WA alex.torres@infospace.com 98004 (w) 425-709-8241 5 Vortman,Sheila L. Director,Center for Applied (2010) Learning 1 year School of Business &Economics Seattle Pacific University 3307 Third Avenue West Seattle 98119 (w) 206-281-2054 svortman@spu.edu Welch,John Superintendent (2010) Highline Public Schools 1 year 15675 Ambaum Blvd SW Burien 98166 (w) 206-433-2217 welchjp@hsd401.org (f) 206-433-2351 White,Alison Carl Executive Director (2009) Seattle Works 206-324-0808 2 years 312 1st Avenue N,Suite 200 (w) Ext. 3 Seattle 98109 (f) 206-324-0817 alison@seattleworks.org Whiting,Sam R. Community Investor,Primary& (2010) Secondary Education 1 year The Boeing Company PO Box 3707,M/S 14-24 Seattle 98124-2207 (w) 206-544-9163 Sam.whiting( boeing.com (f) 206-544-4829 *Jon Fine President&CEO United Way of King County 720 Second Avenue (w) 206-461-3728 Seattle 98104-1702 (f) 206-461-8435 jfine@uwkc.org *Executive Committee member **Date following name indicates when term expires 6 Unite n Wd4it. United Way of King County ted Way of King County EXECUTIVE COMMITTEE 1 INUTES DATE/TIME: December 4,2007 3:00-5:00 p.m. PLACE: Bill&Melinda Gates Community Room PRESIDING: Dan Brettler,Board Chair MEMBERS Michael Bisesi,Jon Fine, Sandra Madrid,Molly Nordstrom, PRESENT: Gordon McHenry,Jr.,Neil McReynolds, and Norm Rice STAFF Liahann Bannerman,Jon Doll, Christine Hynes,Kimberly PRESENT: MacNichols,Lynda Matthias,David Okimoto NEXT MEETING Date: January 8, 2008 Time: 3:00-5:00 p.m. Location: 720 Second Ave,Bill&Melinda Gates Community Room 1. CALL TO ORDER/WELCOME Mr. Dan Brettler,board chair, called the meeting to order at 3:05 p.m. and welcomed members in attendance. II. BOARD EVALUATION TOOL A draft copy of the 2008 Board Evaluation and Individual Board Member Self- Assessment were distributed to the members of Executive Committee in attendance. Ms. Sandra Madrid, Chair of the Governance Committee, shared the changes we will be seeing on the survey. Two new questions on the self- assessment have been added. One regarding committee participation and another question regarding attendance at board meetings. The survey will be distributed in January. III. BOARD RETREAT Norm Rice asked for the Executive Committee's feed back and input on the upcoming Board Retreat scheduled for April 1, 2008. Mr. Rice foresees a robust discussion regarding potential campaign goals and laying the foundation for fundraising.As board members, some bring personal wealth to the table and others bring contacts in the business community as well as personal contacts. One of the ideas discussed was having a panel discussion with past campaign chairs moderated by Norm Rice.Jon Fine stated that a major consideration for future campaigns would be discussing the capability to ratchet up our fundraising what does the organization need to do to get to a$200M goal? Sandra Madrid 720 2nd Ave.Seattle,WA 98104-1702.Phone/TDD 206.461.3700 • FAX 206.461.4872 2 Minutes from the Executive Committee December 4, 2007 expressed wanting to hear from staff members about where progress has been made and where board members could help with challenges they face. Michael Bisesi added that a discussion around succession planning would be helpful to identify future leaders and broaden the array of volunteers. Norm Rice intends to focus the retreat around the organizations opportunities and goals. IV. ALLOCATION PROCESS DISCUSSION Michael Bisesi, Chair, of the Community Building Committee (CBC),updated members on the allocation process and the new allocation process that would begin on July 1,2009.The CBC looked at the structure of the allocation process while paying particular attention to the impact on the community. United Way of King County is viewed as a fair, effective,efficient, organization with the ability to convene the right people in the community. The decisions that were made in the previous allocation process were made with geography, cultural competence,and community need in-mind.The grantee agencies also needed to be able to. demonstrate how the problem would be solved with measurable results. Also, UWKC needed to be able to take a leadership role in solving the problems. Consideration will be given to new priorities (if new priorities are established) and discussion will take place regarding the duration of funded programs.Though some consideration is being given to beginning the new allocation process on 7-1- 10,the Executive Committee encouraged CBC and CST to try and roll out any changes by 7-1-09. V. 2008 BOARD CALENDAR A key goal behind the revision of the 2007-08 board calendar was to have more engaging and strategic board meetings.Jon Fine wanted to ask the board leadership if they were comfortable with the revised calendar and to get input. The consensus was that the new calendar was working out well. Molly Nordstrom added that the new calendar lent itself to more productive meetings. A discussion also took place on what the best communication plan was to board members. Currently, the board receives Real Results (quarterly), Community Link (quarterly), and the Campaign Newsletter (monthly). VI. CAMPAIGN UPDATE Jon Doll,Vice President of Workplace Giving,updated members on the progress of the campaign. Currently we are ahead of last year. Overall the campaign is looking positive.Lynda Matthias shared that Major Gifts is expecting$2.5M in the next 3 weeks. V. ADJOURN There being no further business to come before the executive committee, the meeting was adjourned at 4:25 p.m. 3 Minutes from the Executive Committee December 4, 2007 Respectfully submitted, onnan ce Secretary km „_ .. . - .. ; .71 nited Y" Wayn, United Way of King County Meeting of the Board of Directors January 8,2008 Community Services Report I am pleased to inform the Board that Catholic Community Services is the recipient of our grant to serve homeless youth. The award is for$250,000 for the remaining six months of our fiscal year and $500,000 for the second year. The intent of the grant is to serve 100 youth per year and make use of befit practices. It will offer services to homeless youth in the University District,East King County as rell as South King County. On a sadder note despite yeoman's work on the part of WIN 211 to assist flood victims in Lewis Co�inty, the Governor did not include our$2.5 million request in her supplemental budget. Our effbrts will now focus on the State Legislature to get it added to the budget. Please mark February 7th Ion your calendar for our annual lobby day in Olympia with our United Way colleagues from around the state. This year's legislative agenda will focus on our priorities of ending homelessness and getting kids ready for school. Gordon McHenry,our Public Policy Chair and I will lead a dis ussion at the Board meeting regarding this year's legislative agenda as well as discuss the unique rol that United Way of King County can play in shaping public policy in the State. Finally,extensive work is going on at CBC as it is studying the best way to align our volunteer and staff expertise with our priorities.Al Smith is leading a task force that is reviewing the functions and stricture of CBC, Impact Councils and Community Councils to best align with community impact. It i anticipated that this review and revision of our structure and functions should be completed and positioned to support our fiscal year allocation cycle beginning July 09. Campaign Report Wel are in the midst of processing pledges for most workplace giving campaigns, most of which have completed in the last month. Early data and anecdotal reports are encouraging. The early success of fundraising efforts for the Campaign to End Chronic Homelessness(CECH) and the leadership and active inv.lvement of John Stanton have been key factors in driving this success. C-`` • As of 12/21/07 total dollars'in the door' this year to date are$30,656,821 versus $27,900,456last year. 2 • For the same period, dollars for UWKC this year are$16,312,377 versus$13,159,502 last year. , ; o Factoring out major gifts to the CECH and the Gates Challenge, UWKC dollars this year are$9,028,900 versus$10,588,962 last year—it is likely that this difference is primarily on of timing of receipts. • Fiscal year fundraising projections remain slightly above goal at$55,583,911 for UWKC and$115,675,914 overall. Microsoft's campaign is complete. Initial reports are that the overall company giving was$75M (eceeding the$72M goal). Historically,December gifts have raised the campaign by an additional 5-8%. We are looking forward to that final numbers in the next few weeks. R sults in the smaller company campaigns (outside of top 27 companies)continue to be en ouraging,although still very early. Overall giving this year is$8,976,913 versus$5,299,026last ye r, though. UWKC dollars remain essentially flat. T 4 e 2007Loaned Executive program officially ended on December 7. Regarded as very su cessful,we will have final survey and campaign results later this month. Mike Schaeffer of SAFECO was among this year's LE group and has agreed to act as community advocate for the program in 2008 (succeeding Tim Nowlis of Boeing). S ' 't of Caring celebration is set for March 3 at Benaroya Hall. Award winners were selected on December 19 and will be formally announced at the event(which is why they are not included in thi report!). ,) Finance Report Th financial results for the first five months of the fiscal year continue to be good.Total campaign revenue was $18.4M,unfavorable to plan by$1.2M.The breakdown of the campaign revenue thr ugh November 30,2007 is as follows: Actual Plan To unrestricted gifts $ 5.8M $7.1M Gates Challenge Fund endowment gifts $ 0.7M $.0..1M Campaign to End Chronic Homelessness $ 6.6M $ 5.4M Subtotal—for UWKC $13.1M $12.6M Designated gifts $ 5.3M $ 7.0M $18.4M $19.6M O er income was$5.6M,approximately$0.7M unfavorable to budget. This unfavorable variance is p ' aaily due to timing. an expected in-kind donation of$0.7M in software from Microsoft budgeted for October was not received until the last day of December. Net revenue through Noember was $17.9M, $0.8M unfavorable to budget.Total distributions were favorable.to plan by $1.3M and operating expenses were favorable to plan by$0.7M.The change in net assets was$0.8M, approximately$1.2M favorable to plan. On the balance sheet,available cash at November 30,2007 1, ^ was$11.9M,approximately$3.3M higher than at November 30, 2006 (or approximately$0.1M higher if the non-operating receipts of$2.5M from the sale of the Good Neighbor Center property 3 in December 2006 and the$0.7M recovery from the PipeVine receivership in June 2007 ate excluded). A other financial item of note is the upcoming annual pay down of UWKC's tax-exempt bonds. In 20b3, UWKC financed the purchase and improvement of the UWKC Building at 720 Second A Ienue by issuing$8.5M of variable rate tax-exempt bonds.These bonds were scheduled to be repaid over a 25 year period. Because the bonds are variable rate in nature,UWKC also has the option to accelerate repayment by paying more than the required minimum$340,000 per year.The re ayment history of the bonds is as follows: March 1,2004 $ 340,000 March 1,2005 $1,340,000 March 1,2006 $ 340,000 March 1, 2007 $ 340,000 TI e FY 2008 budget included using$500,000 (20%) of the proceeds from the sale of the Good Neighbor Center to accelerate the pay down of the debt. The Finance Committee reviewed the organization's current financial condition on December 17 and concluded that UWKC's cash position and operating results continue to be strong. On March 3,2008, UWKC will pay down the bonds by$840,000 as planned in the budget.After this pay down, the principal balance of the bonds outstanding will be$5.3 million. United Way • United Way of King County united Way if King County BOARD OF DIRECTORS I INUTES DATE/TIME: March 4,2008 3:00-5:00 p.m. PLACE: Bill&Melinda Gates Community Room, 720 Second Ave,Seattle FACILITATOR: Dan Brettler,Board Chair MEMBERS Christopher Alston,Akhtar Badshah,Rob Beem,Jessica PRESENT: Bonebright, Selina Chow,David Freiboth,Jon Fine, Cathi • Hatch,Mike Heinisch,Mike Hughes,Ted Lord,Sandra Madrid, Eric Markell Al Smith,Karen Marcotte Solimano,David Straus, Steve Sundborg,Alex Torres, Sheila Vortman, and John Welch. STAFF: Liahann Bannerman,Michael Beneke,Jon Doll,Jared Erlandson, Chris Hynes,Kimberly MacNichols,Lynda Matthias,David Okimoto,Mike Pete, and Jim Yearby. NEXT MEETING • Date: April 1,2008 -Board Retreat • Time: 8:00a.m. -noon Location: Talaris Conference Center ACTION ITEMS 1. Consent agenda • I. CALL TO ORDER/WELCOME Mr. Dan Brettler,board chair, called the meeting to order at 3:05 p.m. and welcomed members in attendance. Mr. Brettler stated that the Spirit of Caring Awards,held on the evening of March 3,was well orchestrated. He extended congratulations to staff and acknowledged Brand Management's work on the event. II. CONSENT AGENDA Father Stephen Sundborg asked for an explanation of the Boeing campaign numbers that were included in the Vice President's reports. Jon Fine explained that the Boeing gift this campaign was $2.47M; $130K less than last year's gift. Boeing is transitioning to focus on an impact agenda that has yet to be fully defined.The community affairs department at Boeing is still • making a determination of what that means to its corporate giving.The good { 720 2nd Aye.Seattle,WA 98104-1702.Phone(TDD 206.461.3700 • FAX 206.461.4872 Meeting of the Board of Directors March 4,2008 2 news is that their impact agenda and UWKC's impact agenda aligns in areas such as financial stability and early education. Once UWKC gels a better definition ion of Boeing requirements for corporate donations,we will be better able to align with their expectations. Mr. Brettler presented the consent agenda and requested a motion to approve, It was moved, seconded and carried unanimously: THAT, the consent agenda,which included the minutes from the January 8, 2008, meeting are approved as presented. III. IMPACT PRESENTATION Mr. David Okimoto, Sr.Vice President of Community Services,introduced Ms. Patricia Mclnturff, the Director of the Human Services Department at the City of Seattle. Ms. Mclnturff discussed the partnership of government entities and UWKC in ending chronic homelessness. UWKC is in a unique position of approaching community problems via a public health approach. UWKC has committed to raising$25M in the next two years and the other key partners have committed to $250M to the campaign to end chronic homelessness. Ms. Mclnturff thanked UWKC for starting the initiative and taking a leadership role. UWKC has demonstrated the knowledge of how to solve problems in the community while remaining more nimble than government agencies. Ms. Mclnturff spoke of the power of a shared vision and the ability of changing the systems for the better in our community. IV. OVERSIGHT & ENGAGEMENT AGENDA RESULTS OF THE BOARD EVALUATION Ms. Sandra Madrid, chair of the Governance Committee, introduced the results of the 2008 Board Evaluation. Ms. Madrid also encouraged participation and input with the governance committee. She stated that every board member has a value add in the governance process. She also informed the members of the board that Jon Fine,Dan Brettler,and staff are open to hear concerns they may have. Ms. Madrid covered the following survey questions and asked for input from the members of the board concerning the ratings pertaining to the following questions: #4—Assesses and manages the performance of the board and its committees #7—Engages in ongoing planning activities as necessary to determine our mission, priorities and strategic direction #8 - Regularly addresses the environment in which we function and assures our ongoing activities are current and relevant to long-term goals and communities served Ms. Liahann Bannerman,Director of the Volunteer Center,updated members regarding the nomination of new board members. The board will be receiving an email with instructions on the process and the nomination forms. The forms are • Meeting of the Board of Directors March 4,2008 3 due on March 28`h.The governance committee is asking for a 3 week turnaround on the nomination forms. Some of target areas for nominees are: South County, Asian and Latino candidates,with a focus in the areas of media,business and fundraising. There are a total of 10 vacancies to fill on the board. DASHBOARD REPORT Jon Fine presented the second quarter results of the dashboard report. Fundraising is in good shape with spring campaigns ahead of us as well as a strong Major Gifts push. Our larger companies did not show as much growth as expected and we suspect the slowing economy has had an effect on companies such as WaMu and Macy's. The Campaign to End Chronic Homelessness is on track to raise $12.5M this campaign and Workplace Giving is on track to achieve its overall campaign goal. In general, our community impact areas of childcare center accreditation, supportive housing and website volunteer connections are all on track. But we still have a lot to do in the second half of the year to accomplish our overall goals. DRAFT OF ORGANIZATIONAL PRIORITIES Mr.Jon Fine presented UWKC's initial thinking on key priorities and strategies for 2008-09. The three priorities and strategies proposed are: 1. Take community impact work,with continuing focus on priorities, to the next level 2. Significantly increase fundraising to United Way of King County 3. Align the organization to support: these items The board discussed these priorities and associated strategies. Further discussion will take place at next month's board retreat. IMPACT COUNCIL REDEFINITION Mr.Al Smith, the incoming Chair of the Community.Building Committee, updated members of the board on the realignment of Impact Councils and the Community Council structure.A task force was developed to examine the current allocation process and structure of the councils. Currently the organization has 8 Impact Councils and 4 Community Councils. The task force believes there is a disconnect between the structure and our priorities. The task force will be meeting later this week to provide further definition and will present a proposal to the CBC. The overall goal of the restructuring is to strengthen our community by supporting key priorities as well as continuing to fund infrastructure. V . ADJOURN There being no further business to come before the board of directors, the meeting was adjourned at 5:00 p.m. S Meeting of the Board of Directors March 4,2008 4 Respectfully submitted, Norman Rice Secretary • km I�. UNITED WAY OF KING COUNTY Independent Auditor's Report and Financial Statements with Supplemental Information • June 30,2007 and 2006 CERTIFIED PUBLIC ACCOUNTANTS 1 BUSINESS CONSULTANTS fills.�-.;?� #"^,.._ +c f .s..s v?�.. 1,?`;w�f{a �u' ., �,� � �; i. ? '7� �#-p„ �"Y3c .%.4� �l+ 4fr�?3*' zp ,�F4"` 4_ 1 x `'` x"4:=.' '«,R- # sc:,Z .t4' N��C�Sw�..�..`*£1` 'tt .. P 2. �I:JD ',No , �.+.€� fir "t �' u5, �-� �, Sw•*r., r "ru. ,i.. s., , k . �'. CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT 1 FINANCIAL STATEMENTS Balance Sheet 2 Statement of Activities 3-4 _ i Statement of Changes in Net Assets 5 Statement of Cash Flows 6 Statement of Functional Expenses 7-8 Notes to Financial Statements 9-17 SUPPLEMENTAL INFORMATION Independent Auditor's Report on Supplemental Information 18 Operating Ratio-Unaudited 19-22 A b MOSS ADAMS LLP CERTIFIED PUBLIC ACCOUNTANTS I BUSINESS CONSULTANTS INDEPENDENT AUDITOR'S REPORT o the Board of Directors United Way of King County e have audited the accompanying balance sheet of United Way of King County as of June 30, 2007 and 2006, and the related statements of activities, changes in net assets, cash flows, and functional expenses for the years then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of United Way of King County as of June 30, 2007 and 2006, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. (4-6-MAJ P Seattle,Washington October 12, 2007 1 • UNITED WAY OF KING COUNTY BALANCE SHEET JUNE 30,2007 AND 2006 ASSETS 2007 2006 ASSETS Cash and cash equivalents $ 3,552,975 $ 1,213,541 Cash and cash equivalents -Gates Challenge Fund 4,978,177 - Assets held in trust 988,290 1,414,744 Investments 9,525,939 8,142,820 Contributions receivable,net 50,619,607 33,517,950 Other receivables 330,040 91,797 Other assets 369,695 372,037 Endowments and trusts 6,752,652 6,079,097 Property and equipment,net 8,941,700 9,480,053 Total assets $ 86,059,075 $ 60,312,039 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued liabilities $ 3,855,084 $ 3,589,876 Donor designations payable 43,332,951 23,844,427 Long-term obligations 6,140,000 6,480,000 Total liabilities 53,328,035 33,914,303 NET ASSETS Unrestricted Undesignated 10,366,680 6,073,963 Endowment_board designated- Gates Challenge 4,978,177 - Endowment-board designated-general 1,410,755 1,271,501 Total unrestricted net assets 16,755,612 7,345,464 Temporarily restricted Undesignated contributions 9,182,313 12,759,036 Other 2,271,040 2,224,469 Total temporarily restricted 11,453,353 14,983,505 Permanently restricted 4,522,075 4,068,767 Total net assets 32,731,040 26,397,736 Total liabilities and net assets $ 86,059,075 $ 60,312,039 See accompanying notes. 2 UNITED WAY OF KING COUNTY STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2007 ' Temporarily Permanently Unrestricted Restricted Restricted Total OPIERATING ACTIVITIES Support and revenue Campaign contributions $ 90,119,165 $ 9,182,313 $ - $ 99,301,478 Gates Challenge Fund contributions 22,719,546 - - 22,719,546 Campaign End Chronic Homelessness contributions 401,740 - - 401,740 Less: Donor designations to other organizations (61,121,975) - - (61,121,975) Donor designations to Gates Challenge Fund (22,719,546) - - (22,719,546) Allowance for uncollectible accounts - (422,523) - (422,523) Net campaign contributions 29,398,930 8,759,790 - 38,158,720 Other 7,563,995 825,187 453,308 8,842,490 Net assets released from restrictions 13,115,129 (13,115,129) - - Total support and revenue 50,078,054 (3,530,152) 453,308 47,001,210 xpenses Program services Distributions Allocations to agencies 27,919,501 - - 27,919,501 To agencies from endowment income and contributions 89,020 89,020 Other distributions to agencies 1,252,307 - - 1,252,307 Total distributions 29,260,828 - - 29,260,828 Planning 1,631,877 - - 1,631,877 Distribution 734,918 - - 734,918 Community services 1,143,108 - - 1,143,108 Fiscal agent projects 16,667 - - 16,667 Total program services 32,787,398 - - 32,787,398 Supporting services Management and general 3,207,814 - - 3,207,814 Fundraising 6,698,019 - - 6,698,019 Total supporting services 9,905,833 - - 9,905,833 Total expenses 42,693,231 - - 42,693,231 ' Net operating activities 7,384,823 (3,530,152) 453,308 4,307,979 N•N-OPERATING ACTIVITIES )distribution to Gates Challenge Endowment - - - - ain on sale of Good Neighbor Center 2,451,779 - - 2,451,779 rite-down of asset held in trust (426,454) - - (426,454) Total non-operating activities 2,025,325 - - • 2,025,325 Change in net assets 9,410,148 (3,530,152) 453,308 6,333,304 NE ASSETS,beginning of year 7,345,464 14,983,505 4,068,767 26,397,736 NE ASSETS,end of year $ 16,755,612 $ 11,453,353 $ 4,522,075 $ 32,731,040 See accompanying notes. 3 UNITED WAY OF KING COUNTY STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2006 Temporarily Permanently Unrestricted Restricted Restricted Total OPERATING ACTIVITIES Support and revenue Campaign contributions $ 76,595,878 $ 12,759,036 $ - $ 89,354,914 Gates Challenge Fund contributions 3,910,135 - - 3,910,135 Less: Donor designations to other organizations (53,811,910) - - (53,811,910) Donor designations to Gates Challenge Fund (3,910,135) - - (3,910,135) Allowance for uncollectible accounts - (684,903) - (684,903) Net campaign contributions 22,783,968 12,074,133 - 34,858,101 Other 7,034,399 1,113,635 23,275 8,171,309 Net assets released from restrictions 13,021,263 (13,021,263) - - Total support and revenue 42,839,630 166,505 23,275 43,029,410 Expenses Program services Distributions Allocations to agencies 28,197,167 - - 28,197,167 To agencies from endowment income and contributions 62,624 - - 62,624 Other distributions to agencies 1,656,609 - - 1,656,609 Total distributions 29,916,400 - - 29,916,400 Planning 1,612,556 - - 1,612,556 Distribution 588,232 - - 588,232 Community services 1,098,026 - - 1,098,026 Fiscal agent projects 56,757 - - 56,757 Total program services 33,271,971 - - 33,271,971 Supporting services Management and general 3,305,620 - - 3,305,620 Fundraising 6,488,574 - - 6,488,574 Total supporting services 9,794,194 - - 9,794,194 Total expenses 43,066,165 - - 43,066,165 Net operating activities (226,535) 166,505 23,275 (36,755) NON-OPERATING ACTIVITIES Distribution to Gates Challenge Endowment (30,390) - - (30,390) Change in net assets (256,925) 166,505 23,275 (67,145) NET ASSETS,beginning of year(as restated) 7,602,389 14,817,000 4,045,492 26,464,881 NET ASSETS,end of year $ 7,345,464 $ 14,983,505 $ 4,068,767 $ 26,397,736 See accompanying notes. 4 UNITED WAY OF KING COUNTY STATEMENT OF CHANGES IN NET ASSETS YEARS ENDED JUNE 30,2007 AND 2006 Temporarily Permanently Unrestricted Restricted Restricted Total Net assets as of June 30,2005 $ 7,602,389 $ 15,538,533 $ 4,045,492 $ 27,186,414 Prior period adjustment Understated designated liability - (721,533) - (721,533) Ne-assets as restated at June 30,2005 7,602,389 14,817,000 4,045,492 26,464,881 I hange in net assets (256,925) 166,505 23,275 (67,145) Net assets as of June 30,2006 7,345,464 14,983,505 4,068,767 26,397,736 • Change in net assets 9,410,148 (3,530,152) 453,308 6,333,304 Ne assets as of June 30,2007 $ 16,755,612 $ 11,453,353 $ 4,522,075 $ 32,731,040 See accompanying notes. 5 • UNITED WAY OF KING COUNTY STATEMENT OF CASH FLOWS YEARS ENDED JUNE 30,2007 AND 2006 2007 2006 CASH FLOWS FROM OPERATING AND NON-OPERATING ACTIVI I'IrS Change in net assets $ 6,333,304 $ (67,145) Adjustments to reconcile change in net assets to net cash provided by operating and non-operating activities Depreciation 592,857 630,115 Gain on sale of property and equipment (2,451,779) - Realized and unrealized gain on investments (798,134) (43,520) Donated equipment (4,840) - Distribution to Gates Challenge Endowment - 30,390 Changes in certain assets and liabilities Contributions receivable,net (17,101,657) 6,164,033 Other receivables (238,243) 250,245 Other assets 2,342 34,201 Write down of asset held in trust 426,454 - Accounts payable and accrued liabilities 265,208 173,628 Donor designations payable 19,488,524 (6,322,512) Net cash from operating and non-operating activities 6,514,036 849,435 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (10,520,980) (6,512,965) Proceeds from investments 4,284,262 4,300,556 Proceeds from sale of property and equipment,net 2,488,366 - Purchase of property and equipment (86,250) (120,321) Net cash from investing activities (3,834,602) (2,332,730) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term obligations (340,000) (340,000) NET CHANGE IN CASH AND CASH EQUIVALENTS 2,339,434 (1,823,295) CASH AND CASH EQUIVALENTS,beginning of year 1,213,541 3,036,836 CASH AND CASH EQUIVALENTS,end of year $ 3,552,975 $ 1,213,541 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid for interest $ 235,520 $ 196,933 See accompanying notes. 6 i UNITED WAY OF KING COUNTY STATEMENT-OF FUNCTIONAL EXPENSES YEAR ENDED JUNE 30,2007 Program Services Supporting Services Total Total Distributions Community Fiscal Agent Program Management Fund Supporting Total to Agencies Planning Distribution Services Projects Services and General Raising Services Expenses Salary and wages $ - $ 951,665 $ 454,192 $ 672,842 $ 9,662 $ 2,088,361 $ 1,423,892 $ 3,731,803 $ 5,155,695 $ 7,244,056 Payroll taxes and • employee benefits - 250,620 120,520 , 178,728 2,499 552,367 379,364 912,719 1,292,083 1,844,450 Special events - 16,192 8,875 30,743 1 55,811 7,379 233,740 241,119 296,930 Local transportation and other staff expenses - 21,852 8,869 12,655 147 43,523 20,770 83,642 104,412 147,935 Professional fees and contract services - 192,580 65,140 60,874 2,134 320,728 78,661 151,674 230,335 551,063 Supplies - 14,987 6,455 8,595 168 30,205 20,094 69,639 89,733 119,938 Telephone - 7,727 3,070 4,230 73 15,100 5,988 38,463 44,451 59,551 Postage - 6,818 6,381 7,985 33 21,217 15,407 58,190 73,597 94,814 Occupancy - 23,964 8,615 13,794 580 46,953 77,056 78,622 155,678 202,631 Insurance - 6,166 2,325 4,408 164 13,063 20,270 27,511 47,781 60,844 Equipment rental and maintenance - 9,149 3,885 28,204 183 41,421 32,086 50,974 83,060 124,481 Informational material - 11,500 2,867 30,577 - 44,944 40,350 452,870 493,220 538,164 Newsletters and publications - 2,040 951 5,921 15 8,927 2,800 13,528 16,328 25,255 Conferences,staff training and development - 14,605 5,386 10,083 116 30,190 9,689 39,821 49,510 79,700 Miscellaneous - 8,806 3,433 4,626 85 16,950 133,471 39,973 173,444 190,394 Depreciation - 78,739 33,929 52,288 728 165,684 87,948 339,225 427,173 592,857 Interest - 58 25 39 1 123 234,762 250 235,012 235,135 In-kind 10,745 14,409 - 16,516 78 41,748 32,243 375,375 407,618 449,366 United Way affiliates - - - - - - 585,584 - 585,584 585,584 Distributions to agencies 29,250,083 - - - - 29,250,083 - - - 29,250,083 Total functional expenses $ 29,260,828 $ 1,631,877 $ 734,918 $ 1,143,108 $ 16,667 $ 32,787,398 $ 3,207,814 $ 6,698,019 $ 9,905,833 $ 42,693,231 See accompanying notes. 7 UNITED WAY OF KING COUNTY STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED JUNE 30,2006 Program Services Supporting Services Total Total Distributions Community Fiscal Agent Program Management Fund Supporting Total to Agencies Planning Distribution Services Projects Services and General Raising Services Expenses Salary and wages $ - $ 933,108 $ 357,966 $ 611,028 $ 32,698 $ 1,934,800 $ 1,373,827 $ 3,551,234 $ 4,925,061 $ 6,859,861 Payroll taxes and employee benefits - 264,349 100,756 173,981 9,299 548,385 386,090 908,119 1,294,209 1,842,594 Special events - 12,212 8,971 36,051 1 57,235 6,688 159,608 166,296 223,531 Local transportation and other staff expenses - 21,863 8,117 13,704 683 44,367 31,899 100,579 132,478 176,845 Professional fees and contract services - 175,871 40,942 59,619 7,030 283,462 210,936 251,298 462,234 745,696 Supplies - 13,706 4,736 11,115 497 30,054 17,965 69,485 87,450 117,504 Telephone - 7,553 2,650 4,758 236 15,197 7,288 39,914 47,202 62,399 Postage - 4,916 5,567 8,607 156 19,246 21,872 60,215 82,087 101,333 Occupancy - 44,695 11,755 19,292 2,096 77,838 78,645 69,027 147,672 225,510 Insurance - 5,406 1,968 4,007 175 11,556 26,247 24,829 51,076 62,632 Equipment rental and maintenance - 12,282 4,651 35,409 340 52,682 30,012 72,974 102,986 155,668 Informational material - 7,820 2,765 26,041 - 36,626 34,149 370,319 404,468 441,094 Newsletters and publications - 2,615 1,081 6,896 80 10,672 4,151 11,307 15,458 26,130 Conferences,staff training and development - 11,937 4,240 8,881 453 25,511 29,264 38,375 67,639 93,150 Miscellaneous 9,699 2,448 4,438 411 16,996 134,688 46,829 181,517 198,513 Depreciation - 79,448 29,582 58,476 2,599 170,105 100,893 359,117 460,010 630,115 Interest - 104 37 76 3 220 202,920 469 203,389 203,609 In-kind 39,324 4,972 - 15,647 - 59,943 18,603 354,876 373,479 433,422 United Way affiliates - - - - - - 589,483 - 589,483 589,483 Distributions to agencies 29,877,076 - - - - 29,877,076 - - - 29,877,076 Total functional expenses $ 29,916,400 $ 1,612,556 $ 588,232 $ 1,098,026 $ 56,757 $ 33,271,971 $ 3,305,620 $ 6,488,574 $ 9,794,194 $ 43,066,165 See accompanying notes. 8 UNITED WAY OF KING COUNTY NOTES TO FINANCIAL STATEMENTS JUNE 30,2007 AND 2006 Note 1-Description of Organization and Summary of Significant Accounting Policies Mission Statement and Activity - The mission of United Way of King County (the Organization) is to strengthen the community by enhancing the ability of people to care for one another. Its primary activities include collaborating with others in the community to identify and resolve community problems, raising funds through workplace campaigns to address the health and human service needs of King County,and fostering volunteerism. The Organization also served as the principal fund raising organization for the King County Combined Campaign for the years ended June 30, 2007 and 2006. Total amounts of$3,509,630 and $885,805 were raised for these campaigns and are included in campaign contributions. Of the total amount raised, $2,353,719 is included in donor designations for the year ended June 30, 2007. There were no donor designations to other organizations for this campaign for the year ended June 30,2006. Most of the Organization's transactions are with entities located in King County. The Organization has two entities (including corporate and employee contributions) that account for approximately 40% and 47% of total campaign contributions for the years ended June 30, 2007 and 2006. The percentage of total contributions receivable related to these two entities was 19% and 26%at June 30,2007 and 2006. Basis of Presentation-The financial statements of the Organization have been prepared on the accrual basis of accounting. Net assets and revenues, expenses, gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, the net assets of the Organization and changes therein are classified and reported as follows: Unrestricted Net Assets are net assets that are not subject to donor-imposed stipulations. Temporarily Restricted Net Assets are net assets subject to donor-imposed stipulations that may or will be met by actions of the Organization and/or the passage of time. These amounts principally consist of undesignated contributions receivable and a charitable remainder trust. Permanently Restricted Net Assets are net assets subject to donor-imposed stipulations that the resources be maintained permanently, but permit the Organization to use or expend part or all of the income derived from donated assets for either specified or unspecified purposes. This amount consists of a perpetual trust. 9 UNITED WAY OF KING COUNTY NOTES TO FINANCIAL STATEMENTS JUNE 30,2007 AND 2006 Note 1-Description of Organization and Summary of Significant Accounting Policies (Continued) Revenues are reported as increases in unrestricted net assets unless the use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law. Donor-restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted support. Expirations of temporary restrictions on net assets (i.e., the donor-stipulated purpose has been fulfilled and/or the stipulated time period has elapsed)result in the reclassification of temporarily restricted net assets to unrestricted net assets and are reported in the statement of activities as net assets released from restrictions. Temporary restrictions on gifts to acquire long-lived assets are considered met in the period in which the assets are acquired or placed in service. Contributions - Contributions, which include unconditional promises to give, are recognized as revenues in the period received. Conditional promises to give are not recognized until such time as the conditions are substantially met. Contributions of noncash assets are recognized at their estimated fair market value on the date of contribution. Contributions that are expected to be collected within one year are recorded at their estimated net realizable value. Contributions to be received after one year are discounted at an appropriate discount rate commensurate with the risks involved. Amortization of discounts is recorded as additional contribution revenue in accordance with donor-imposed restrictions,if any,on the contributions. The Organization receives contributions via its annual fund raising campaigns that are donor- designated for other agencies. These revenues are included in total campaign contributions and are deducted from total campaign contributions under donor designations to other organizations. An allowance for uncollectible accounts is recorded using an estimated percentage of outstanding contributions receivable. This estimate is compared to historical averages to determine its reasonableness. Donor designated balances are not reserved against for uncollectibility as an offsetting designation liability is recorded. A substantial number of volunteers donate significant amounts of time in the furtherance of the Organization's objectives. However, in accordance with Statement of Financial Accounting Standards No. 116, Accounting for Contributions Received and Contributions Made, the value of these services is not recognized in these financial statements as they do not meet the specific criteria. Cash and Cash Equivalents -The Organization considers all highly liquid assets purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents consist primarily of money market funds,which are not subject to withdrawal restrictions or penalties and are stated at fair value, which approximates cost. The Organization maintains its cash and cash equivalents in depository institution accounts that at times may exceed federally insured limits. The Organization has not experienced any losses in such accounts. 10 UNITED WAY OF KING COUNTY NOTES TO FINANCIAL STATEMENTS JUNE 30,2007 AND 2006 Note 1 -Description of Organization and Summary of Significant Accounting Policies (Continued) Assets Held in Trust - Assets held in trust are comprised of cash held by a court appointed receiver for an insolvent third party servicer of the Organization. In June 2007, the Organization accepted a settlement offer from the receiver of an upfront payment of 49% of the outstanding balance and to have the remaining 51% of the balance pooled with other unsecured claims of the receivership. The Organization estimates that it will receive $988,290 in total from the receivership and has written down the assets held in trust balance at June 30, 2007 by $426,454 accordingly. Investments - Investments are comprised of up to 360-day demand and time deposits. The investments are valued at cost, which approximates fair value. The Organization engages in investment activities that are designed to maintain liquidity, maximize returns and minimize risk within policy guidelines approved by the Organization's Board of Directors. The Organization has not experienced any realized losses in its investment activities. Property and Equipment -Property and equipment are carried at cost or, if donated, at the fair value on the date of donation. The Organization follows a policy whereby it capitalizes purchases of property and equipment greater than $1,000. Depreciation is recorded using the straight-line method over the following estimated useful lives: Buildings 40 years Buildings improvements 5 to 40 years Furniture,fixtures and equipment 3 to 10 years Operating and Non-Operating Activity - Operating activities represent support and revenue and expenses solely related to the United Way of King County campaigns. Non-operating activities are revenues and expenses related to endowment transfers, property sales and the valuation of assets held in trust. Income Taxes - The Internal Revenue Service of the United States of America has recognized the Organization as exempt from income taxes under Internal Revenue Code (IRC) Section 501(c)(3) except to the extent of unrelated business taxable income as defined under IRC Sections 511 through 515. The Organization did not incur unrelated business income tax for the year ended June 30, 2007 or 2006.Accordingly,the financial statements do not include a provision for federal income taxes. Use of Estimates -Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.Actual results could differ from those estimates. Reclassifications - Certain balances in the 2006 financial statements have been reclassified to conform to the 2007 presentation.These reclassifications had no effect on change in net assets. 11 UNITED WAY OF KING COUNTY _ NOTES TO FINANCIAL STATEMENTS JUNE 30,2007 AND 2006 Note 2 - Contributions Receivable Contributions receivable as of June 30 are expected to be received as follows: 2007 2006 Within one year $ 38,902,267 $ 28,717,007 Between one and five years 15,500,441 9,200,922 54,402,708 37,917,929 Less: Discount to present value(5%) (1,887,444) (1,441,778) Allowance for uncollectible pledges (1,895,657) (2,958,201) Total contributions receivable $ 50,619,607 $ 33,517,950 rj Note 3 - Contribution Receivable from Remainder Trust The Organization is a beneficiary of two charitable remainder trusts held by a third party. The remainder trusts were created in 1965 and 2004 and will go to the Organization upon termination of the trust,based on the percentage in which net income is paid out from the remainder trust. The Organization's estimated interest in each trust is recorded at the present value of the Organization's ownership interest in each trust,which ranges between 1.50%and 19.16%. Note 4 - Property and Equipment The components of property and equipment as of June 30 are as follows: 2007 2006 Office building $ 6,721,142 $ 6,809,231 Land 2,352,000 2,372,322 Furniture, fixtures and equipment 2,305,146 2,265,239 Good Neighbor Center - 110,167 Property and equipment not yet placed in service 50,261 24,000 11,428,549 11,580,959 Less accumulated depreciation (2,486,849) (2,100,906) $ 8,941,700 $ 9,480,053 12 UNITED WAY OF KING COUNTY NOTES TO FINANCIAL STATEMENTS JUNE 30,2007 AND 2006 N.to 5 -Leases The Organization has entered into various noncancelable lease agreements for office space and equipment, which will expire through 2012. Future minimum rental payments required under leases that have initial or remaining noncancelable lease terms in excess of one year as of June 30, 2007 approximate: Years Ending June 30, Amount 2008 $ 42,000 2009 40,000 2010 32,000 2011 17,000 2012 12,000 $ 143,000 Rent expense under leases was $47,762 and$71,859 for the years ended June 30,2007 and 2006. N o to 6 -Long-Term Obligations The Washington State Housing Finance Commission issued Variable Rate Demand Nonprofit Revenue Bonds, Series 2003 (the Bonds) of $8,500,000 and loaned the proceeds to the Organization.The Bonds are payable solely from payments made by the Organization. Bond proceeds were utilized to fund the acquisition and rehabilitation of headquarter facilities in Seattle,Washington. The Bonds are collateralized by a mortgage note, a deed of trust on real property, and supported by an irrevocable, direct pay letter of credit. Bank of America has issued an unconditional irrevocable letter of credit(LOC) for$8,586,164,which expires March 1,2008,unless extended. Commencing March 2003, interest on the Bonds is due at a variable rate per annum with no maximum ceiling. A fee equal to 0.55% of the LOC amount is payable annually. Annual Bond principal payments starting at$340,000 began in March 2004 and continue for 25 years. The Organization is required to comply with various restrictive covenants contained in the Bond financing agreements. Among other matters, these covenants require the payment of taxes, specified levels of insurance, and maintenance of the Organization's facilities, qualified nonprofit status and certain financial ratios. As of June 30, 2007, the Organization is in compliance with these covenants. 13 UNITED WAY OF KING COUNTY NOTES TO FINANCIAL STATEMENTS JUNE 30,2007 AND 2006 Note 7 -Employee Benefit Plans The Organization has established the United Way of King County Retirement Plan (Retirement Plan), a defined contribution plan that covers substantially all of the Organization's employees. Each year the Organization contributes 6.0% of each participating employee's annual compensation plus 5.7% of compensation in excess of the Social Security Wage Base to the Retirement Plan. The Organization contributed $322,627and $309,570 to the Retirement Plan for the years ended June 30, 2007 and 2006. Effective January 1, 2008, the Organization will contribute 5.0% of each participating employee's annual compensation plus 5.7% of compensation in excess of the Social Security Wage Base to the Retirement Plan. • The Organization has established the United Way of King County Section 403(b) Plan (403(b) Plan), a defined contribution plan that covers substantially all of the Organization's employees. Participating employees contribute to the 403(b) Plan via salary reduction agreements. Effective July 1, 1998, the Organization matches 50% of each employee contribution up to 3% of the employee's compensation. The Organization contributed $131,808 and $130,559 to the 403(b) Plan for the years ended June 30, 2007 and 2006. Effective January 1, 2008, the Organization will match 50%of each employee contribution up to 4% of the employee's compensation. Note 8 -Endowments In 1982, the Organization transferred assets to the Seattle Foundation to establish the Organization's Endowment Fund ("the Endowment"). The Organization named itself as the beneficiary of the Endowment. The Organization typically receives annual distributions from the Seattle Foundation from the earnings of the Endowment. In accordance with Statement of Financial Accounting Standards No. 136, Transfers of Assets to a Not-For-Profit Organization or Charitable Trust That Raises or Holds Contributions for Others ("SFAS 136"), because the Organization transferred the assets to the Seattle Foundation and named itself as the sole beneficiary, the Organization has recognized the Endowment as an asset on the Organization's balance sheet. Gifts from donors wishing to establish endowments in support of the Organization's mission are directed to the Seattle Foundation. The Organization periodically makes contributions to the Endowment from unrestricted net assets. In 2000, the Bill and Melinda Gates Foundation gave a special grant of approximately$30 million to create the United Way of King County Administrative Endowment Fund ("the Administrative Endowment"). The Administrative Endowment is held at the Seattle Foundation. The purpose of the Administrative Endowment is to assist the Organization with operational expenses. Additionally in 2000, the Bill and Melinda-Gates Foundation announced a matching grant program ("The Gates Challenge") for the Administrative Endowment that will provide up to $55 million in matching gifts through June 30, 2010. The last payment on the match will be received in September 2010. 14 UNITED WAY OF KING COUNTY NOTES TO FINANCIAL STATEMENTS JUNE 30,2007 AND 2006 Note 8 -Endowments (Continued) In accordance with SFAS 136,because the Seattle Foundation retains variance power with respect to the earnings from the Administrative Endowment, the assets of the Administrative Endowment are not reflected in the accompanying balance sheet of the Organization. Distributions from the Administrative Endowment are recorded as income to the Organization when received. The following summarizes the financial activities of these funds held at the Seattle Foundation as of June 30: 2007 Gates Endowment Challenge Total Beginning market value $ 1,271,501 $ 78,724,728 $ 79,996,229 Contributions and match 25,325 10,882,170 10,907,495 Investment income and realized gains 102,205 6,579,036 6,681,241 Investment income and unrealized gains 92,654 6,048,871 6,141,525 Distribution to Organization (64,020) (3,036,245) (3,100,265) Fees and expenses (16,910) (529,461) (546,371) Distribution to Gates Challenge endowment - - - Ending market value $ 1,410,755 $ 98,669,099 $ 100,079,854 2006 Gates Endowment Challenge Total Beginning market value $ 1,238,094 $ 65,570,148 $ 66,808,242 Contributions and match 765 8,589,667 8,590,432 Investment income and realized gains 97,354 5,356,596 5,453,950 Investment income and unrealized gains 45,404 2,531,123 2,576,527 Distribution to Organization (62,624) (2,835,929) (2,898,553) Fees and expenses (17,102) (517,267) (534,369) Distribution to Gates Challenge endowment (30,390) 30,390 - Ending market value $ 1,271,501 $ 78,724,728 $ 79,996,229 15 UNITED WAY OF KING COUNTY NOTES TO FINANCIAL STATEMENTS JUNE 30,2007 AND 2006 Note 9 - Other Support and Revenue Other support and revenue is comprised of the following for the years ended June 30: 2007 Temporarily Permanently Unrestricted Restricted Restricted Gates Challenge distribution for operating expenses $ 3,036,245 $ - $ - Miscellaneous income and contributions 1,072,054 49,000 - Fees for designation processing 567,111 - - In-kind donations 454,206 - - Endowment realized and unrealized gain 374,484 80,992 453,308 Grants 688,372 641,785 - Sponsorship 347,607 53,410 - Event revenue,net 161,300 - - Receipts from other fundraising organizations 132,081 - - Rental income 1,258 - - Contract income 56,227 - - Interest income 647,360 - - Other endowment income 25,690 - Total $ 7,563,995 $ 825,187 $ 453,308 2006 Temporarily Permanently Unrestricted Restricted Restricted Gates Challenge distribution for operating expenses $ 2,835,929 $ - $ - Miscellaneous income and contributions 1,307,268 103,782 - Fees for designation processing 549,613 - - In-kind donations 433,422 - - Endowment realized and unrealized gain 309,023 2,274 23,275 Grants 643,656 1,007,329 - Sponsorship 287,656 250 - Receipts from other fundraising organizations 213,084 - - Rental income 7,114 - - Interest income 421,943 -Other endowment income 25,691 - - Total $ 7,034,399 $ 1,113,635 $ 23,275 16 UNITED WAY OF KING COUNTY NOTES TO FINANCIAL STATEMENTS JUNE 30,2007 AND 2006 Note 10 - Related Party Transactions The Organization paid dues to the national and regional organizations, United Way of America and United Way of Washington, in the amounts of$584,083 and $588,983 for the years ended June 30,2007 and 2006. The Organization also received campaign contributions from members of its board of directors of $1,704,852 and $846,279 for the years ended June 30, 2007 and 2006. Outstanding contributions receivable due from these board members were $978,745 and $299,222 as of June 30, 2007 and 2006,some of which includes multi-year gifts. N I to 11- Commitments The Organization has an unsecured revolving line of credit with a $3,000,000 borrowing limit. Interest is payable monthly at U.S. Bank's prime rate, with the principal due at December 31, 2007,the maturity date on the line of credit.There was no outstanding balance as of June 30,2007 or 2006. 17 SUPPLEMENTAL INFORMATION MOSS-ADAMS LLP CERTIFIED PUBLIC ACCOUNTANTS I BUSINESS CONSULTANTS INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTAL INFORMATION To the Board of Directors United Way of King County Our report on our audits of the basic financial statements of United Way of King County for 2007 and 2006 appears on page 1. These audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The operating ratio data as stated on pages 19 through 22 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion or other form of assurance on it. Ald—nvo P . Seattle,Washington October 12,2007 18 UNITED WAY OF KING COUNTY OPERATING RATIO-UNAUDITED JUNE 30,2007 AND 2006 The Organization calculates an operating ratio based on the comparison of supporting services expense to campaign revenues, both of which are specifically defined by the Organization for this purpose. The oprating ratio is used by the Organization to estimate the percentage of campaign dollars raised that is sp1nt on supporting services such as fundraising and management. Certain campaign related expenses are paid by other parties. This amount is detailed in Note 9 - Other Support and Revenue of the audited financial statements. Because this amount is directly applied to specific fundraising expense, the Organization factors it in as an offset to campaign related expenses in the calculation of the operating ratio. An explanation of these other income items follows. Fo example, the Organization employs "loaned executives" on a seasonal basis to assist in the Or anization's annual workplace fundraising campaigns. The expense for these loaned executives is inc uded in the total for gross campaign related expenses. This expense, however,is offset by donations fro companies that offer workplace fundraising campaigns for their employees. These donations may take two forms: the contribution of a company employee for a period of time to serve as a loaned executive (an in-kind gift) or the contribution of money to hire a loaned executive (a sponsorship gift). Al o, the cost of certain fundraising events is fully offset by sponsorship dollars. Since the additional expense of these items is covered by these gifts, the Organization reduces the gross campaign related e enses by the amount of the in-kind and sponsorship revenue. Thf workplace fundraising campaigns conducted by the Organization are designed to support and encourage full donor choice. The Organization will process and pay out a gift to any certified 501(c)(3) organization. Because it costs the Organization to administer,process, and pay out a designated gift, the Organization charges a fee to perform this service. The Organization reduces the gross campaign related ex a enses by the amount of these processing fees. 19 UNITED WAY OF KING COUNTY OPERATING RATIO -UNAUDITED (CONTINUED) JUNE 30,2007 AND 2006 The operating ratio for the years ended June 30 is calculated as follows: 2007 Program Supporting Services Services Total Expenses $ 32,787,398 $ 9,905,833 $ 42,693,231 Less: Distributions to agencies 29,260,828 - 29,260,828 Planning 1,553,138 - 1,553,138 Distribution 700,989 - 700,989 Community services 1,090,820 - 1,090,820 Fiscal agent projects 15,939 - 15,939 Depreciation 165,684 427,173 592,857 32,787,398 427,173 33,214,571 Campaign related expenses-gross - 9,478,660 _ 9,478,660 Less: In-kind expenses (407,618) (407,618) Offset by certain other income: Sponsorships (401,017) (401,017) Processing fees (567,111) (567,111) (968,128) (968,128) Campaign related expenses-net $ 8,102,914 $ 8,102,914 Campaign contributions-excluding Gates Challenge-current year $ 98,162,489 Campaign contributions-excluding Gates Challenge-prior year 1,540,729 99,703,218 Campaign contributions-Gates Challenge 22,719,546 Total campaign revenue $ 122,422,764 Gross operating ratio 6.6% Distribution from United Way of King County Administrative Endowment Fund $ (3,036,245) Net operating ratio 4.1% 20 UNITED WAY OF KING COUNTY OPERATING RATIO -UNAUDITED (CONTINUED) JUNE 30,2007 AND 2006 2006 Program Supporting Services Services Total Expenses $ 33,271,971 $ 9,794,194 $ 43,066,165 Les: Distributions to agencies 29,916,400 - 29,916,400 Planning 1,533,108 - 1,533,108 Distribution 558,650 - 558,650 Community services" 1,039,550 - 1,039,550 Fiscal agent projects 54,158 - 54,158 Depreciation 170,105 460,010 630,115 33,271,971 460,010 33,731,981 Campaign related expenses-gross - 9,334,184 9,334,184 Less: In-kind expenses (373,479) (373,479) Offset by certain other income: Sponsorships (287,906) (287,906) Processing fees (549,613) (549,613) (837,519) (837,519) Campaign related expenses-net $ 8,123,186 $ 8,123,186 Campaign contributions-excluding Gates Challenge-current year $ 87,744,401 Campaign contributions-excluding Gates Challenge-prior year 1,610,513 89,354,914 Campaign contributions-Gates Challenge 3,910,135 Total campaign revenue $ 93,265,049 Gross operating ratio 8.7% Distribution from United Way of King County Administrative Endowment Fund $ (2,835,929) Net operating ratio 5.7% 21 UNITED WAY OF KING COUNTY OPERATING RATIO—UNAUDITED (CONTINUED) EFFECTIVE JULY 1,2004 United Way of America Overhead Reporting Standard for United Ways The United Way of America has implemented the following overhead reporting standard for United Ways for all fiscal years starting on or after July 1,2004. The United Way of King County submitted its calendar year 2005 (fiscal year 2006) Form 990 to the IRS in February 2007, as required by law. United Way of King County's overhead ratio percentage (United Way of America method) for fiscal year 2006 is 9.4%,as calculated below. The United Way of King County will submit its calendar year 2006 (fiscal year 2007) Form 990 to the IRS in February 2008, as required by law. United Way of King County's overhead ratio percentage (United Way of America method) for fiscal year 2007 will be calculated at that time. United Way of America Overhead Ratio Percentage (United Way of America Method) The IRS Form 990 is the source for the calculation of this overhead ratio percentage. The sum of Management and General (Line 14), Fundraising (Line 15), and Payments to Affiliates (Line 16) is the numerator,and Total Revenue (Line 12) is the denominator for the calculation. 2005 FORM 990 FY 2006 Management and General $ 2,692,815 Fundraising 6,161,688 Payments to Affiliates 589,483 $ 9,443,986 Total Revenue $ 100,124,588 Overhead Ratio Percentage 9.4% 22 United n United Way of King County Way �►' United Way of King County NJO n - t) - — . , 1 , Policies Related to Agencies �'��` _ � 9 3-1 Agency Partnerships United Way's vision includes a leadership role in funding health and human services in the community. United Way participates with other funders, service providers, community groups, academic institutions, and government entities to assess health and human service needs, identify issues/problems, set priorities,propose solutions/mitigation and develop/fund a measurable plan of action to bring results (also described as "outcomes"). United Way distributes financial resources in accordance with its plan in an accountable and efficient manner, and in compliance with donor intent. In tie field of health and human services, quality service delivery is, often, accomplished by providing services to specific populations and providing specific types of services. In addition to supporting the provision of services to the general population, United Way of King County values andrespects the integrity of agencies whose mission is to provide specific services and/or to serve tang ted populations (i.e., abused women, senior citizens, individuals with disabilities or those belo ging to specific ethnic groups). United Way is involved in distributing financial resources in four ways. First, United Way develops funding relationships through contracts with agencies that perform in a cost effective and accoluntable manner and that deliver quality client services producing agreed upon outcomes. In these policies, such agencies are called "Grantee Agencies." Second, United Way distributes some "Verture Funds" to organizations in special circumstances, as described in Section 3-3. Third, United Way distributes some funds to organizations in furtherance of"community initiatives." And fourth, United Way is the recipient of funds designated by donors for delivery to specified organ ations. United Way has no discretion in the distribution of those funds. Gr ntee Agency Funding Relationship Be efits Gra tee Agencies receive, or are eligible for, the following benefits: • unds to be dedicated to one or more United Way Impact Areas to produce agreed upon dutcomes. • The ability to represent to the public that the organization is a United Way Grantee Agency. This status is exclusive to agencies that are successful in United Way's funding valuation/distribution process and that are meeting strict standards in their services, financial ffairs, accountability,and governance. • se of the United Way of King County logo on their signage and materials, in compliance with graphic standards established by United Way. (These standards are available for review upon request.) • Ii-depth assistance with governance, management, reorganization, service delivery, and other challenging issues, through collaboration with United Way Human Services Managers, other United Way staff, and volunteers with special expertise available through the United Way Volunteer Center's Management Assistance Program. • Special training regarding community impact plans, outcomes, and pertinent demographic data. • Participation in United Way's collaborative community building efforts that identifies and broker solutions to health and human service needs. • Special collaboration in United Way's efforts to solve health and human service needs. • Participation in special United Way Volunteer Center events, such as Days of Caring and Project LEAD "board fairs," as well as other Volunteer Center services such as training programs and linking volunteers to agency opportunities. • Representation on appropriate United Way committees. • Representation of the agency community on the United Way Board of Directors, through the United Way nominations process. • Promotion in United Way campaign materials. • Listings and"hot links" on the United Way website. • Responsibilities • A Grantee Agency shall provide services leading to outcomes per its contract with United Way of King County. • A Grantee Agency shall meet all federal and state laws pertaining to charitable organizations. • A Grantee Agency shall not engage in discrimination based on age, gender, race, sexual orientation, national origin, religion or presence of a disability in regards to the delivery of services as provided in Section 3-2. Notwithstanding the foregoing, for Grantee Agencies that serve target populations (as defined in Section 3-2), United Way understands and accepts the need for policies and services to be culturally sensitive, relevant and accessible to target populations. Accordingly, for Grantee Agencies serving target populations, boards, staff and volunteers may, in selected instances, reflect the target population served to assure that services are provided appropriately and effectively. United Way also strongly encourages all Grantee Agencies to follow United Way's commitment not to discriminate (even if legally permissible) based upon age, gender, race, sexual orientation, national origin, religion or presence of a disability with respect to Grantee Agency governance, employees or volunteers. [The text of this paragraph is to be supplemented in ways to be determined, pursuant to the action approved by the United Way of King County Board of Directors on January 8,2002.] • A Grantee Agency shall have an active, responsible governing board. Members of the board shall not be employed by the Grantee Agency, except for the Chief Professional Officer (e.g., Executive Director,President or Chief Executive Officer). All members of the board shall serve without compensation. The board shall hold regular meetings and board members shall participate actively in the policy making of the Grantee Agency. Among other things, such important matters as Grantee Agency budgets, finances, audits, personnel policies, strategic plans, goals, objectives, and programs must be subjects receiving the board's attention, review and approval. • A Grantee Agency shall seek a variety of funding sources to ensure maximum financial stability. • A Grantee Agency shall avoid events, solicitations and other fund-raising strategies that could negatively impact the United Way of King County annual campaign,and shall discuss such fund- raising activities with United Way of King County. • A Grantee Agency shall manage and use funds properly. United Way of King County Policies Related to Agencies • A Grantee Agency shall keep accurate accounts of all receipts and expenditures and submit an udit annually prepared by an Independent Certified Public Accountant, or reviewed financial tatement, as provided in Section 3-5. A Grantee Agency shall keep basic records that dequately reflect outcomes,and administrative and financial management of the programs. • A Grantee Agency shall provide outcome data to United Way. • A Grantee Agency shall work with United Way and other organizations in the community to achieve Community Impact. • A Grantee Agency's administrative costs (management and general plus fundraising) shall not be excessive. United Way generally believes that administrative costs should not exceed 25% of total expenditures. • A Grantee Agency shall promote the United Way campaign by: • Providing speakers, tours and participating in other mutually agreed upon activities. • Conducting an employee workplace campaign utilizing payroll deduction. • Using United Way of King County logo on agency signs and materials, as considered appropriate by the Grantee Agency. • Promoting giving to United Way. • Linking its website via"hot link" to the United Way website. • Cooperating fully with United Way of King County to maximize the success of the annual Community Campaign. Amended by the United Way of King County Board of Directors,January 8,2002 Organizations Receiving Only Donor Designations Benefits An organization receiving donor-designated funding via United Way is eligible for: • Service from the Volunteer Center. • Coordination with United Way's community building efforts that identify and broker solutions to health and human service needs. Participation in appropriate United Way committees. Responsibilities An organization receiving donor-designated funding via United Way shall: • Meet all federal and state laws pertaining to charitable organizations. • Provide documentation that it meets eligibility requirements. An organization receiving donor-designated funding via United Way will be encouraged to promote the annual United Way Campaign. Amended by the United Way of King County Board of Directors,January 8,2002 United Way of King County Policies Related to Agencies 3-2 Client Services Grantee Agencies may serve targeted populations but shall not engage in discrimination. Discrimination is defined as denying service to a potential client or member when the service is denied on the basis of age,gender,race, sexual orientation,national origin, religion or presence of a disability, and when the denial of service is unrelated to the need for or the delivery of the services desired. In the field of health and human services, quality service delivery is, often, accomplished by providing services to particular populations. In addition to supporting services to the general population, United Way of King County values and respects the integrity of Grantee Agencies whose missions are to serve target populations, for example: abused women, senior citizens, individuals with disabilities, or those belonging to ethnic groups. Service to target populations is defined as providing services to a specific client or membership population when: • Service delivery brings specialized expertise to meet client/member needs, or • The target group has a specific service need not shared by the general population, or • The service is being delivered to clients or members to redress past discrimination, or • Services are made more accessible, and/or empowering, to underserved populations. All Grantee Agencies will make best efforts to assist anyone in an emergency situation and supply appropriate referrals to those seeking service. Amended by the United Way of King County Board of Directors,January 8,2002 3-3 Venture Fund The purpose of venture funding at United Way of King County is to support regional or sub- regional priorities deemed to be critical by United Way community councils. Examples of appropriate uses for venture funds used in the context of community council priorities include: testing new and innovative approaches to service delivery, responding to critical or emergent needs, developing essential services in under-served communities; and supporting community planning and community building efforts that lead to improved lives. These funds will be distributed pursuant to contracts establishing the purpose for which the funds will be used. Amended by the United Way of King County Board of Directors,November 4,2003 3-4 Funding of Abortions Contributions to United Way of King County for distribution through its allocation process are not used to fund abortions or agencies that perform abortions. United Way of King County places no restrictions on the use of funds designated by contributors to non-affiliated 501(c)(3) health and human service organizations. United Way of King County Policies Related to Agencies • 3-5 Audit Policy All nited Way of King County grantee agencies are required to submit annual financial statements audited or reviewed by an independent Certified Public Accountant. These submissions are due no late than five (5) calendar months plus one (1) day after the close of an agency's fiscal year. If a submission due date falls on a weekend or United Way of King County holiday, the submission due date is moved to the following United Way of King County business day. If an agency either (a) has $500,000 or more in total annual revenues or (b) receives $100,000 or more annually in non-designated funds from United Way of King County, the agency is required to submit audited financial statements. Otherwise, an agency may submit reviewed financial stat Iments. Compiled financial statements are not acceptable. If a agency is unable to meet its audit or review due date, a written extension request must be signed by the Chair of the agency's governing Board and received by United Way of King County in timei to be evaluated and approved prior to the due date. Justification for approval of extension requests of audit or review due dates shall be limited to those circumstances clearly beyond the control of the agency. Extension requests must include a target submission date as well as a brief description of: 1. What event(s) has/have caused the delay in completing the audit or review in a timely fashion 2. Who is responsible for the event(s) causing the delay 3. The timing of the relevant factors affecting the event 4. Why the event(s) is/are beyond the control of the agency 5. What steps the agency has taken to insure that the delay will not reoccur Requests for extensions of audit or review due dates must be approved by both (a) either the Chair of the audit Review Committee or her/his designee, and (b) either the President/CEO of United Way or the Vice President of Community Services. The approval process may require a week or more. Audit reports must be prepared in accordance with generally accepted auditing standards specifically relevant to the not-for-profit industry. Audited or reviewed financial statements are to be in conformity with generally accepted accounting principles (GAAP) and the American Institute of Certified Public Accountants (AICPA) Guide, "Audits of Not-For-Profit Organizations." Where applicable, audits are to adhere to Government Auditing Standards, the requirements of OMB Circular A-133, and any other relevant standard. Reviews are to be prepared in accordance with AICPA standards. The independent accountant's report should include an unqualified opinion. In the rare event of a qualified opinion, an adverse opinion, or a disclaimer of opinion, the report must be accompanied by ail agency board statement which sets out the agency's plan for correcting the item or items which caused the independent accountant to issue other than an unqualified opinion. United Way of King County Policies Related to Agencies The agency's submission packet must include: 1. A complete audit or review of the agency's most recently ended fiscal year; 2. Evidence from the agency's governing Board that it has accepted the audit or review as final. Evidence includes (a) minutes of the agency Board meeting at which the review or audit was accepted as final, or (b) a letter over the signature of an agency Board officer that,in his/her'capacity as a Board officer, she/he accepts the audit or review as final; 3. Management letters are issued by the auditor, usually during the audit process, to advise the Board of significant deficiencies (formerly referred to as reportable conditions) and significant weaknesses. • If the Organization received a management letter — send a copy of the letter with the audit report sent to UWKC. • If you did not receive a management letter and your report is issued under Governmental Auditing Standards no further action is required. • If you did not receive a management letter and your report was issued under Generally Accepted Auditing Standards provide a letter, signed and dated by a board member, that the Organization did not receive a management letter and include the letter with the audit report sent to UWKC. 4. All related OMB Circular A-133 reports for the most recently ended fiscal year as soon as they are completed. Note that if any part of the submission packet is missing, the entire packet is considered to be not turned in. Failure to comply with the stated Audit Policy will result in the following actions: The agency will receive notification when the audit or review is overdue by 15 days. The communication will clearly state that if the complete audit package is not received within the 60-day grace period, the agency's funding allocation will be sequestered. The notification will become part of the agency's permanent record. If an agency's non-designated funds are sequestered for 90 days or more, the President of United Way of King County or his/her designee, through the Community Building Committee, is expected to bring this issue before the Board of Directors of United Way of King County to approve the forfeiture of a portion of or all sequestered funds and to cease non-designated funding for that agency and take other appropriate action. During this period, United Way of King County reserves the right to solicit proposals from other agencies that might be able to extend similar services in the community. If a late milestone date falls on a weekend or a United Way of King County holiday, then that late milestone is moved to the following United Way of King County business day. Note,however, that such a move does not affect any subsequent late milestone date. If an extension request has been approved after the sequestering process has begun, the sequestering process is stopped temporarily, but resumes at the point of interruption should the agency fail to meet the target submission date that was agreed to in the extension approval process. United Way of King County Policies Related to Agencies pon Audit Review Committee verification that the agency has submitted a current and omplete packet and that the review process uncovered no issues to be investigated, the hair of the Audit Review Committee will notify the President of United Way of King ounty in writing. The President of United Way of King County or her /his designee will • struct the accounting staff to release all sequestered non-designated funds to the agency and to resume normal monthly non-designated fund payments for that agency. The 'resident of United Way of King County will notify both the agency Executive Director and the agency Board Chair of this action. A copy of the Audit Review Committee letter of .udit verification and a copy of the President's letter of release from sequestering will be laced in the permanent agency file. The process of reviewing an audit or review may uncover issues with an agency that are so serious as to call into question the financial health or integrity of that agency or to create doubt as to the ability of tliat agency to honor its contractual performance commitments with United Way of King County. In such case, these issues will be brought to the attention of the Community Building Committee of the hoard of Directors of United Way of King County for investigation. Dur ng this investigation, the non-designated funds to that agency will be sequestered. Upon successful resolution of these issues, the sequestered funds will be released. If these issues cannot be successfully resolved, the Community Building Committee is expected to ask the Board of Dir ctors of United Way of King County to approve the forfeiture of all sequestered funds and to cease non-designated funding for that agency. If e Board of Directors of United Way of King County approves the forfeiture of all sequestered funs and the cessation of non-designated funding for that agency, the agency may reapply for fu e funding from the United Way of King County. Issues identified in the review of audits, as well as the agency's history of audit submission will be an element in determining the future allocation levels. Approved by the United Way of King County's Community Building Committee on April 17,2007. 3-7 Dispute Resolution through Negotiation United Way of King County believes that negotiation is the process of choice, in instances when there is a dispute between the United Way and any of its Grantee Agencies concerning policy compliance or an award that is perceived to be made outside the fund distribution guidelines. Negotiation permits parties in conflict to fully discuss their concerns openly (with the help of a trainled facilitator when necessary) in an atmosphere of mutual trust. Therefore, all agencies that partner with United Way shall submit any such conflicts to non-binding negotiations according to the process set forth below. Step#1 A Dispute is Identified Whenl there is a dispute between United Way of King County and one of its Grantee Agencies, either the Grantee Agency or United Way can request that the dispute be resolved through a negotiation process. United Way of King County Policies Related to Agencies Step #2 The Scope is Defined The scope and significance of the dispute is defined. Step#3 Negotiation Decision Made The United Way Board of Directors decides whether negotiation is the appropriate process to be used after consultation with the Grantee Agency. Step #4 Key Leaders Meetings Held If the United Way Board of Directors decides to implement the negotiation process, the volunteer and professional leadership from the Grantee Agency(s) will meet directly with the Chief Volunteer Officer and Chief Executive Officer of United Way. Other staff or board members from the Grantee Agency or United Way may attend these sessions as reasonably agreed between the Grantee Agency and United Way. This group will make every effort to come to agreement. If agreement cannot be reached in 60 days, negotiations will be continued with assistance from an independent facilitator. Step #5 Experienced Facilitator Recruited United Way shall maintain a list of volunteer facilitators with extensive experience. The list shall be composed in equal numbers of names provided by Grantee Agencies and those provided by United Way. United Way and the Grantee Agencies may add experienced facilitators in equal numbers to such list from time to time so long as such additions are not made while a dispute is in process. When negotiations reach an impasse, a facilitator shall be selected as follows: First, within seven days, the parties shall determine if they can agree on one of the facilitators from the facilitator list. Second, if no agreement is reached, within seven days, five facilitators shall be selected by lot from the facilitator list. United Way shall strike two names from the list, and the Grantee Agency shall strike two names from the list. In the event more than one Grantee Agency is involved in the negotiation, the Grantee Agencies, as a group shall only strike a total of two names from the list. In the event that the parties each strike one or more of the same names from the list, and still cannot agree on a facilitator, a facilitator shall be selected by lot from the non-struck names. Step#6 Ground Rules Established by The Facilitator The facilitator will use his/her judgment to establish the ground rules of the negotiations. At the first meeting with the parties, the nature of the dispute will be clarified. The number and dates of meetings will be decided, along with an ending date. The facilitated negotiation process should not exceed four months. Other ground rules discussed should include requirements for attendance, confidentiality, and communication with boards of directors and communication with the public/media. The facilitator will decide when it is appropriate to meet with the groups together and/or separately to achieve a resolution. Step #7 Resolution Resolution of the dispute may take several forms. United Way may agree to make a change. The Grantee Agency(s) may take action to comply with the current or changed policy. In some cases, agreement may not be possible and the best resolution may be separation. In these cases, the parties shall negotiate a disengagement that meets the best interest of both groups. The disengagement negotiations should be completed, using the same facilitator,within two months. • Amended by the United Way of King County Board of Directors,July 7,1998 United Way of King County Policies Related to Agencies TAXP YER INTAKE FORM UNITED WAY TAX CAMPAIGN You (and Spouse) will need: • P of of Identity • Child care provider's identification number • C pies of ALL W-2, 1098, 1099 forms • Banking information(checking and/or savings account)for direct deposit/debit • • Social Security(SSN)or Individual Tax • Amounts/dates of estimated or other tax Identification Number(ITIN)for all payments made, etc. Individuals to be listed on the return • Amounts of other income Part I Taxpayer Information 1. Your First Name M.I. Last Name 2. SSN or ITIN 3. Date of Birth 4. US Citizen or Resident Alien 5. Legally Blind 6. Totally and Permanently Disabled (mm/dd/yyyy) 0 Yes ❑ No ❑ Yes 0 No 0 Yes 0 No 7. Spouse's First Name M.I. Last Name 8. SSN or ITIN 9. Date of Birth , 10. US Citizen or Resident Alien 11. Legally Blind 12. Totally and Permanently Disabled (mm/dd/yyyy) ❑ Yes 0 No ❑ Yes 0 No 0 Yes 0 No 13. Address Apt# City State Zip Code 14. Phone Number and e-mail address 15. Can you or your spouse be claimed as a dependent Phone: ( ) on the income tax return of any other person for 2007? email: 0 Yes ❑ No 16. On December 31,2007: a.Were you: 0 Single 0 Legally Married 0 Separated 0 Divorced 0 Widowed b. If married,were you living together(with your husband/wife)on/after June 30,2007? 0 Yes 0 No c.Was your spouse deceased? If yes, provide the date of death. (mm/dd/yyyy) 17. Did you pay more than half the cost of keeping up the home for the year? ❑ Yes 0 No Part II. Family and Dependent Information-Do not include you or your spouse. Print the name of everyone who lived in your home and outside your home that you supported during the year. Name Date of Birth Social Security Relationship to Number of US Citizen, Is the dependent (first,last) mm/dd/yyyy Number or ITIN you(son, months person Resident of US, a full time student daughter,etc.) lived with you in Canada or Mexico born before 19897 2007 (yes or no) (yes or no) (a) (b) (c) (d) (e) (f) (9) The information contained in this intake sheet is true and correct. I understand that the United Way Free Tax Prep Campaign viill retain this information for tax preparation purposes, and may contact me if there are questions about my return. I realize that the Campaign will use this information to improve tax assistance service to me and speed preparation of tax returns. I realize also that my information will be shared with and I may be contacted by a third party if I =cked any options on Question 3 (page 2). Personal information is not shared outside of the scope of this program, nor I to any other organization or company. Taxpayer signature: Date: TAXPAYER INTAKE FORM UNITED WAY TAX CAMPAIGN GENERAL INFORMATION (Please circle the appropriate answer) ,What language do you speak at home most frequently? (Choose one) (1) English (4) Russian (7)Vietnamese (2) Chinese (5) Samoan (8) Other: (3) Korean (6) Spanish (9) No response 2. What ethnicity do you consider yourself? (Choose one) (01) African American/Black (11) Samoan (02) Chinese (12) Somali (03) Eritrean (13)Vietnamese (04) Ethiopian (14)Thai (05) Filipino (15)White/Caucasian (06) Khmer(Cambodian) (16) More than one race (07) Korean (17) Don't Know (08) Latin, Hispanic, or of Spanish Origin (19)Other: (09) Native American or Alaskan Native (99) No response (10) Russian 3. Would you like to be contacted after today with information about any of the topics below? (Choose one or more) (A)Assistance paying electricity or utility bills (G) Job training or employment resources (B)Assistance paying for childcare (H) Home ownership (C) Food assistance (I) Starting or funding a small business (D)Assistance paying for health insurance (J) Planning for education (E) Financial education classes (K) Information on predatory lending (F) Debt/Credit counseling (99) No response/do not contact me 4. Have you done any of the following in the past six months? (Choose all that apply) (1) Deposited money into a savings account (2) Deposited money into a retirement account (3) Used a check cashing facility to cash your check(instead of a bank or credit union) (4) Sent money to family or friends, living outside of the United States, through Western Union or a similar service (5) Used a Pay Day Lending service (6) None of the above (9) No response 5. How much does your household pay each month for your rent or mortgage? (Choose one) (1) Less than $500 (6)$1,500-$1,750 (2)$500-$750 (7) $1,750-$2,000 (3) $750-$1,000 (8) More than $2,000 (4) $1,000-$1,250 (9) No response (5) $1,250-$1,500 6. Have you been threatened with eviction or foreclosure in the last year? (Choose one) (1)Yes (2) No (9) Don't know/No answer 7. Do you have a bank account? (Choose one) (1)Yes, checking account (4) No, but I would like one (2)Yes, savings account (5) Not interested (3)Yes, both checking and savings accounts (9) No answer 8. How did you have your taxes done last year? (Choose one) (1) Here (5) Paid someone and received instant refund (2) Did my own (6) Paid someone without an instant refund (3)Another free place like this (7) Did not file last year (4) Family or friend (free) (9) Don't know/No answer How did you hear about this service? (Choose one) (01) Filed here last year (05) Newspaper (09) Community Voice Mail (CVM) (02)Walked by (06) Caseworker (10)A friend or family member (03) My child's school (07) Church (99) Not sure/No answer (04) Called 2-1-1 (08)A flyer in the mail United Way of King County 1 Statement of Ac 's- - - - , FY 2005 FY 2006 FY 2007 Actual Actual Actual Revenue Gross campaign Current Year $ 94,708,060 $ 87,617,089 $ 97,760,749 Current Year-endowment $ 4,452,615 $ 3,753,996 $ 22,568,197 . , Current Year-Campaign to End Chronic Homelessness $ - $ - _ $ 401,740 Prior Year $ 842,125 - $ 1,737,825 $ 1,540,729 Prior Year-endowment $ 650,577 $ 156,139 _ $ 151,349 Allowance for uncollectibles $ (670,608) $ (684,903) $ (422,523) Gates Challenge Fund disbursement $ 2,183,552 $ 2,835,929 $ 3,139,861 Other income $ 5,405,466 $ 5,335,380 $ 5,702,629 Total Revenue $ 107,571,787 $ 100,751,455 $ 130,842,731 Donor agency designations-Current Year $ (59,358,003) $ (53,220,483) $ (61,317,195) Donor agency designations-Current Year-endowment $ (4,452,615) $ (3,753,996) $ (22,568,197) Donor agency designations-Prior Year $ 513,467 $ (591,427) $ 195,220 Donor agency designations-Prior Year-endowment $ (650,577) $ (156,139) $ (151,349) Net Revenue $ 43,624,059 $ 43,029,410 $ 47,001,210 Distributions Allocations $ (28,495,622) $ (28,197,167) $ (27,919,501) Other distributions $ (1,652,023) $ (1,719,233) $ (1,341,327) Total Distributions $ (30,147,645) $ (29,916,400) $ (29,260,828) • Net Program Services and Operating Expenses Direct department expenses $ (11,901,880) $ (11,726,558) $ (12,018,827) Dues to affiliates $ (524,481) $ (589,483) $ (585,584) Depreciation and interest $ (646,569) $ (833,724) $ (827,992) Total Net Program Services and Operating Expenses $ (13,072,930) $ (13,149,765) $ (13,432,403) Non-Operating Activities Distribution to Gates Challenge Endowment $ (23,654) $ (30,390) $ - Write-down of asset held in trust $ - $ - $ (426,454) Gain on sale of Good Neighbor Center property $ - $ - $ 2,451,779 $ (23,654) $ (30,390) $ 2,025,325 Change in Net Assets $ 379,830 $ (67,145) $ 6,333,304 Net Assets Beginning $ 26,085,051 $ 26,464,881 $ 26,397,736 Ending $ 26,464,881 $ 26,397,736 $ 32,731,040 19.A PLICATION CHECKLIST Applications missing one or more of,the following components or not following these directions may not be reviewed. Sign and submit the application checklist with your application. Contents (Your application should contain each of these items in this order.) 0°'Application Cover Pages. The top three pages of your application must be a completed copy of the Agency Information and Questions 1-7. pplicatio0arrative: Quuestion 8 Organizational Experience (2 page maximum) e estion 9 Need for Your Program(2 page maximum) ( uestion 10 Proposed Program/Service(6 page maximum) © stion 11 Long Range Plan(1 page maximum) Question 12 Budget(2 page maximum) ata Table Question 13 Number of Individuals/Households Served MI •uestion 14a-c Performance Measures and Average Cost of Service f stion 15 Demographics (from all funding sources) [! Question 16 Program Staff Hp ii ue tion 17 Program Revenue &Expense Budgets A 4iiestion 18 Subcontracts equired documentation. Supply one copy of the following required documents with the signed original application. See Part II: City Specific Supplemental Information to determine whether additional copies of the application and required documentation need to be submitted. uestion 19 Required Documentation, including: • Proof of non-profit status • • Organizational Chart • Agency/Organization Mission Statement • Board resolution authorizing submittal of the application(may be submitted up to 60 days after application). l.)2- .\\ �Q-"\ •.-.3� w:N. &e) S . • List of the current governing board and local board, if applicable, (include na position/title, city residence, length of time on the Board, and expiration of terms. Note any vacancies.) • Board Meeting Minutes of last three board meetings of governing board and local board as applicable • Annual Budget • Financial Audit Cover Letter • Financial Audit Management Letter • Financial Statement • Verification of Non-Discrimination Policy • Program Intake Form • Sliding Fee Scale !L.4" Application Check List. (Signed below.) • City Specific Supplemental Information. Required in Name: Lauren McGowan art II for applicable City only. Position: Manager of Asset Development Programs Th.A4 4_.: Phone#: 206-461-6973 E-mail: Lmcgowan@uwkc.org Unite Way of King County Tax Campaign Page 22 Signature of Person Completing Checklist DO NOT SUBMIT ANY OTHER MATERIALS WITH THIS APPLICATION Make sure that you carefully check Part II of this application to see what additional attachments each city requires. United W.y of King County Tax Campaign Page 23 City of Renton Human Services Application Supplemental Questions Organization: United Way of King County Free Tax Preparation Campaign Contact: Lauren McGowan, Manager of Asset Development Programs 206-461-6973 - Lmcgowan@uwkc.org 1. Pre-application submitted. 2. United Way of King County's Free Tax Preparation Campaign addresses Renton Result 3: All individuals become as self-sufficient as possible. The Tax Campaign will help achieve this Result by promoting the Earned Income Tax Credit, providing free tax preparation and access to the EITC and other tax credits and connecting tax customers to asset building opportunities and mainstream financial products. UWKC will measure and report the total amount of EITC and other Tax Credits generated by the program and the number of asset building connections made through the Cash Coach. The Free Tax Prep Campaign provides free tax preparation services, including filing tax returns electronically for quick refunds, making sure that tax customers receive the Earned Income Tax Credit(EITC) and other tax credits if they are eligible, and helping people access other asset building opportunities including public benefits, financial education, credit and debt counseling, homeownership training and individual development accounts. By helping residents claim tax credits and avoid paid tax preparation services,the Free Tax Prep Campaign will help local families retain more of their savings and contribute directly to efforts to reduce poverty and help families build assets and become more economically secure. The Free Tax Preparation Campaign is one program in a broad range of community based strategies to help people maximize their income and to move toward wealth creation. The objectives of the Free Tax Campaign are to help low income working people in King County to: • Receive high quality free tax preparation services & utilization of EITC and other tax benefits. • Increase asset building skills and opportunities • Increase disposable earned income • Increase utilization of financial institutions and instruments • Increase knowledge and is such as the EITC and Child Tax Credits (CTC) • Decrease utilization of high cost financial services and predatory lending products such as refund anticipation loans (RALs) We believe that by striving to achieve these objectives and continuing each year to expand the number of people we serve, we will be able to reduce the number people who are living from day to day and increase the number who are able to plan and save for their future.