United Way of McLean County is in compliance with the spirit and intent of the U.S. Patriot Act and other counter terrorism laws. Affirmative action is taken to prevent financial, technical, in-kind or other resources from inadvertently being used for illegal acts and terrorist activities.
The United Way system has developed comprehensive requirements for completion of audited financial statements. They are intended to create a uniform set of standards for all United Ways to follow in preparing audited financial statements to ensure consistency and transparency on the part of each United Way. The requirements are based on current best practices in our industry as well as generally accepted accounting principles and requirements of the Financial Accounting Standards Board. The United Way system has also developed requirements for completion of the IRS Form 990 that clarify various areas of ambiguity and establish a single United Way standard for the 990 where the IRS allows for several different approaches.
At United Way Worldwide, they know that their success is measured on how well they deliver on the mission to make measurable improvements in communities nationwide. And they know the importance of setting high standards for themselves and local United Ways. New membership standards were implemented for United Ways in 2003 to enhance the level of accountability and transparency in local operations. Annually, United Way of McLean County must certify to United Way Worldwide its adherence to these requirements.
Every United Way must:
- Be tax-exempt under Section 501(c)(3) of the Internal Revenue Code as well as corresponding provisions of other applicable state or local laws or regulations. Larger United Ways, including United Way of McLean County, must file their IRS Form 990 annually in a timely manner and submit their entire IRS Form 990 to United Way Worldwide annually.
- Comply with all other applicable legal local, state and federal operating and reporting requirements (e.g., nondiscrimination, Sarbanes-Oxley Act, USA Patriot Act).
- Have an active, responsible and voluntary governing body, which ensures effective governance over the policies and financial resources of the organization.
- Adhere to a locally developed and adopted statement to ensure volunteers and staff broadly reflect the diversity of the community it serves.
- Represent itself as a United Way in accordance with all United Way Worldwide trademark standards and requirements.
- Support the United Way system by providing financial support to United Way Worldwide according to the membership investment formula.
- Adhere to a locally developed and adopted code of ethics for volunteers and staff, which includes provisions for ethical management, publicity, fundraising practices, and full and fair disclosure. Larger United Ways, including United Way of McLean County, are required to submit a copy of their code of ethics to United Way Worldwide.
- Undergo an annual audit conducted by an independent certified public accountant whose examination complies with generally accepted auditing standards and GAAP. Large United Ways, including United Way of McLean County, are required to submit their audited financial statements to United Way Worldwide annually.
- Conduct every three years a volunteer-led self-assessment of its community impact work, financial management, and organizational governance and decision making.
- Annually submit to United Way Worldwide a report of the total resources generated (annual fundraising campaign plus other resources such as in-kind donations and proceeds from special events). This report must be completed according to a policy that ensures an accurate, unduplicated national accounting for the United Way system.
- Biannually submit to United Way Worldwide a report on United Way income and expenses.
- If managing donor-designated gifts, base any fee charged on actual expenses. If receiving designated gifts from another United Way organization, not deduct fundraising or processing fees.