South-Southwest Surburban United Way

“The south-southwest suburban united way is a member united way (muw) affiliated with united way of metropolitan Chicago (uwmc), Inc., an Illinois non-profit philanthropic corporation whose mission is to improve lives In the metropolitan Chicago area by mobilizing caring people to invest in The community where their resources are needed most. Member United Ways are certified by United Way Worldwide and maintain their own 501 (c) (3) status and Board of Directors. A MUW is required to be governed by a set of written bylaws that have been approved by the UWMC and reviewed by UWMC board of directors at least every three years. The MUW Chief Professional Officers report to both the MUW Board President and to the UWMC Chief Operating Officer. The vision of uwmc, the south-southwest suburban united way and the other muws is that metropolitan Chicago becomes a region of thriving communities where all individuals and families are able to achieve their potential. The challenges facing communities in the metropolitan area are complex and multi-faceted, requiring long-term and integrated strategies that address the root causes of these issues. To address these challenges, uwmc and the muws are focused on leveraging expertise, connections and resources to drive lasting solutions for Individuals and communities. For the reporting period, uwmc had three member united ways ("muws"), including the south-southwest suburban united way: South-southwest suburban united way united way of DuPage/west cook united way north-northwest It is important to note that effective at the close of business On June 30, 2015, united way of DuPage/west cook and south-southwest Suburban united way retired their 501(c)(3) status and merged with UWMC to better align with a region-wide impact strategy and create operational efficiencies. Uwmc and the muws are implementing a region-wide plan to ensure Significant impact in the areas of education, financial stability, health And basic needs support by 2020. The plan focuses on 60 high-need Communities, and includes regional strategies and neighborhood-specific Solutions. The key to lasting community change is to address the root Causes of the complex issues that individuals, families and neighborhoods Face by focusing on three key levers - education, income and health. Uwmc and the muws also focus on safety net issues to ensure that basic Needs - food, shelter and safety - for individuals and families are met. The plan includes four high value outcomes: 1. help 50,000 underperforming middle school students enter high school on track to graduate 2. advance economic stability for 100,000 households 3. connect more than 200,000 people with available, preventative health Services 4. answer the crisis needs of approximately 1 million people every year by providing food, shelter and freedom from violence Since implementing the impact plan, uwmc and the muws have made Significant progress toward those goals: 1. Education -2020 goal: help 50,000 underperforming middle school kids enter high School ready to succeed -fy12-fy15 cumulative result: 46,894 Middle School students on track to graduate/ be promoted to next grade level - 93.8% 2. Income -2020 goal: advance economic stability for 100,000 households -fy11-fy15 cumulative result: 117,629 households improved economic stability - % of goal: 118% 3. Health - 2020 goal: connect over 200,000 people with available, preventative Health services - fy11-fy15 cumulative result: 384,051 people connected to a primary care Physician - % of goal: 192% 4. Basic needs - 2020 goal: answer the crisis needs of 1 million people every year by Providing food, shelter and freedom from violence - fy15 cumulative result: 4.2 million people in crisis received Assistance To further address the complex challenges in high-need communities Throughout the region, united way of metropolitan Chicago developed the united way neighborhood Network initiative. The initiative utilizes a collective impact model”

“Form 990, Part VI, Line 1a The board of directors has delegated authority to the executive committee To conduct affairs of the board of directors between meetings of the Board as permitted by law and under the bylaws of the south-southwest suburban united way all such actions by the executive committee must Be reported to the board of directors for appropriate action at the next Meeting of the board.”

“Form 990, Part VI, Line 7b Each muw is registered with the state of Illinois and each organization Files a separate form 990 informational tax return. One combined Financial statement audit is performed for uwmc and its muws. Each muw Board of directors must vote on a resolution to adopt the membership Agreement with uwmc thereby accepting compliance with uwmc's Policies, standards, and criteria of membership. The membership agreement Is subject to approval and ratification of the uwmc board of directors. Each muw board of directors is governed by bylaws that have been approved By uwmc. The member advisory committee is a committee of the uwmc board Of directors comprised of two representatives from each muw and four Regional suburban representatives who are uwmc board of director members. The member advisory committee provides advice with respect to the muws To the uwmc board of directors as to fund distributions, agency Allocations, budget, operations, and related policies. The uwmc board of Directors has ultimate authority over policy and approval of agency Allocations. Historically, the uwmc board of directors has honored the Recommendations which have been presented by the member advisory Committee on behalf of the muws. Each muw is certified by united way Worldwide and this certification is contingent on the muws active Membership agreement with uwmc. Uwmc provides finance, accounting, information systems, human resources, And other administrative support to the muws. Uwmc acts as an agent for The muws in processing pledges, receiving cash on pledges, and paying muw Allocations and expenses. Cash receipt and payment activities and the Support reimbursement arrangement together result in intercompany Receivables and payables throughout each fiscal year for uwmc and the Muws.”

“Form 990, Part VI, Line 11b A review of the form 990 was conducted by the chair of the board of Directors, the chief professional officer of the muw and the uwmc controller prior to the filing Following the review and approval by the treasurer and chief professional Officer, the form 990 was provided to each of the voting members of the Board directors prior to the filing.”

“Form 990, Part VI, Line 12c The organization has a formalized business ethics policy, applicable to All employees, directors of uwmc and muws, volunteer committee members, Their spouses and close family members. The aforementioned individuals Are required to complete an annual compliance questionnaire disclosing Close relationships between the individual and third parties who may have A relationship to the organization. The results of the questionnaire are Reported to the uwmc audit committee annually. The policy covers compliance with laws, policies, rules and regulations; Conflicts of interest; bribes and kickbacks; misappropriation or Disregard of donor, employee, or volunteer data; accounting practices; Providing or receiving gifts, entertainment or prizes; and political activity In connection with uwmc other than public policy advocacy. The policy Prohibits participation in outside business ventures for financial gain Which conflicts with the organization's activities. The organization also has a whistleblower policy covering all employees, Directors of uwmc and muws, volunteer committee members, donors and Funded agencies. Individuals may make anonymous reports to a third-party Provider, and will be investigated by the uwmc staff ethics officer, president & ceo, chief operating officer and/or vice president of human resources as appropriate. Retaliation of any kind is expressly prohibited by the organization.”

“Form 990, Part VI, Line 15a The performance review for the chief professional officer is conducted annually by the south-southwest board chair and the chief operating officer of uwmc. Highlights of the review are shared with the executive committee of the muw. Compensation decisions are made following uwmc guidelines. Salaries are also benchmarked against similar jobs within the united way system, and other local and national not-for-profit organizations. Salaries are approved by the ceo of uwmc and board chair of south-southwest.”

“Form 990, Part VI, lINE 18 The following organizations are affiliated with UWMC: United Way of DuPage/West Cook United Way North-Northwest South-Southwest Suburban United Way The internal revenue service ("irs") has recognized this group of Organizations (referred by the irs as "subordinates") as tax-exempt Because they are affiliated with uwmc. This avoids the need for each Of the organizations to apply for exemption individually. A group Exemption letter issued by the irs has the same effect as an individual Exemption letter except that it applies to more than one organization. Uwmc was issued a determination letter in 2004 and the uwmc is exempt Under section 501(c)(3) of the internal revenue code. In addition, the irs recognizes these subordinates as exempt from federal Income tax. Form 1023 is available on uwmc's website at www.uw-mc.org. South-southwest makes its form 990 available on its website.”

“Form 990, Part VI, Line 19 The south-southwest suburban united way makes its governing documents, the bylaws and articles of Incorporation, available upon request. The most recent audited financial Statements and a link to ethicspoint are available on the south-southwest Suburban united way website (www.uw-mc.org/ssw/). Ethicspoint is a Customized page created for uwmc and its member united ways. Within Ethicspoint, there is a link to the business ethics policy containing the Conflict of interest policy.”

“FORM 990, PART IX, SUMMARY The south-southwest suburban united way calculates its 2014 tax year (fiscal year ended June 30, 2015) overhead rate using the sum of management and general Total expenses and fundraising total expenses reported in part ix (statement of functional expenses) divided by the total revenue reported In part viii, line 12 of column a. This overhead rate for the 2014 tax Year is 11.7% Expenses incurred by south-southwest suburban united way reflects the Primary role of staff knowledge in fundraising, community engagement, Volunteerism, advocacy and coalition building necessary for an Organization that leverages expertise, connections and resources toward Solving community problems and improving lives on a large scale. Administrative Support Reimbursement Form 990, Part IX, Line 11A The amount included in this line represents the reimbursement made by South-Southwest United Way to the UWMC for the administrative support described elsewhere in schedule O.”

“Form 990, Part XI, Line 9 Gain on prior year pledge write-offs...............................$15,247”

“Form 990, Part XII, Line 2C Uwmc has an audit committee which is responsible for the oversight of the Audit of the consolidated financial statements and the selection of the Independent certified public accountants.”