The United Way is a nonprofit organization that has been around since 1887. Founded to help charities raise funds, the United Way also provides grants and coordinates emergency relief services. It is one of the largest nonprofit agencies in the United States, with about 1,300 local organizations and a reach covering 46 countries. 62 In a difficult economic climate, nonprofits such as the United Way—as well as the charities they support—have found themselves in a trying situation. Donations to all kinds of charitable organizations have dropped precipitously. As people have less discretionary money available, they use what they have for their own needs and, therefore, give less to charities. At the same time, more people desperately need assistance from others to make ends meet. In a recent year, the United Way experienced a 68 percent increase in the number of requests for basic eeds.63 This is a clear indication that individuals and families have been hit hard by the recession. With this increase in need and a decrease in donations, the organization is experiencing an incredible strain. So how does a manager motivate employees and volunteers during tough economic environments? Keeping a large staff of full-time employees as well as tens of thousands of volunteers motivated is not an easy task even in the best of times. For an organization that relies on the passion and dedication of those associated with it, motivation becomes even more challenging when financial incentives are out of the question. So the United Way had to find the means to motivate its staff in a way that was also financially responsible. What it discovered was that training employees and volunteers could be a key method of enriching professional lives. With 9,300 employees and countless volunteers, tackling this effectively is challenging but vital. Heidi Kotzian, director of marketing and national events at the United Way, said the organization “will succeed only if our staff has the tools and knowledge they need to effect change.”64 Thus, training not only keeps people associated with the organization excited about their roles within the United Way but also facilitates ongoing organizational performance.

1. Which theory of motivation do you think is most applicable in describing the United Way’s use of training? Explain.

2. With a very limited budget, what other nonmonetary incentives can you identify to maintain employees’ commitment to the United Way?

3. Thinking solely about the United Way’s volunteers, how would you motivate them, given that they are unpaid but still have a strong dedication to the work they do?