2 0 0 8 / 2 0 0 9 | R E P O R T T O T H E C O M M U N I T Y

CONTENTS

Letter from our CEO and Board Chair ............ 1

Our Vision ................................................... 2

Safety-Net of Care ........................................ 4

Long-term Change Strategies ......................10

Leveraging Partnerships .............................16

Financial Statements ..................................22

Notes to Financial Statements .....................24

Board of Directors ......................................28

Maria Chavez Wilcox, President and CEO with Douglas P. McCombs, Chairman of the Board

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In the midst of a challenging economy, now more than ever, LIVING UNITED and GIVING UNITED can and is making a difference. By partnering with Orange County United Way, you are helping to restore and sustain the foundation that needs to exist in order for communities to flourish. Through our Community Impact work, we are committed to strengthening the infrastructure of our county. By focusing on three key priority areas: 1) ensuring a safety-net of care for those in need of basic services, 2) providing educational opportunities to enable people to develop their skills, 3) providing financial literacy resources to help families and individuals become self-sufficient — we are taking a holistic approach to creating long-term, positive change.

United Way’s partner agencies have seen a drastic increase of families and individuals seeking basic need services. 2-1-1 Emergency Hotline, a United Way supported organization, has seen an increase of 6,000 calls between July and November 2008 with requests for food and housing assistance, doubling from the prior year. This is just one example of the current needs in Orange County, and unfortunately, examples like these continue to increase each day. We are thankful for our corporate and community partners, volunteers and donors who continue to support United Way’s vision to improve lives and strengthen our community during these challenging times.

We know that in order to have the greatest impact on the human care issues facing Orange County families today, we must come together to pool resources, provide encouragement and collaborate on ideas. For example, this past fall Orange County United Way held our first Women’s Summit which explored the obstacles women and girls face on their quest for self-sufficiency. The event was a huge success based on the issues identified, the dialogue between community leaders and professionals, and the solutions proposed. As a result of the summit, a pilot program is being established to address current barriers facing women and girls including transportation systems, vehicle purchase programs, mentorship and financial stability courses to help individuals meet their basic needs, enhance education and job skills, and improve financial literacy. We are extremely excited about the future of this pilot program and the creation of other programs that will address the needs of various target audiences.

Again, we would like to express our gratitude for your lasting support and the investments you make in our work and the lives of others. During difficult times, an investment in people and in the overall health of our county will provide the greatest return today and for years to come. When we reach out a hand to one, we truly influence the condition of all.

Most sincerely,

ORANGE COUNTY UNITED WAY

Maria Chavez WilcoxPresident/CEO

Douglas P. McCombsBoard Chair

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To achieve our vision of building self-sufficient lives, Orange County United Way focuses on two approaches:

First: We support a safety-net of care to ensure that basic needs are met today.

Second: We support solutions for long-term change focused on education and financial stability to move people from dependency to self-sufficiency tomorrow.

Safety-Net

Many individuals and families in Orange County lack adequate food, shelter, medical care and emergency services. Orange County United Way supports a safety-net throughout the county that helps individuals and families secure these most basic needs.

Orange County United Way knows that these basic needs must first be met in order to move people from survival toward economic self-sufficiency and security. A family can’t focus on enhancing their education if they can’t place food on the table.

Long-term Change

In addition to supporting a safety-net of care, United Way partnerships provide long-term solutions that strengthen our communities to help people become, and remain, self-sufficient.

Self-sufficiency begins with quality early childhood education and continues with life-long learning opportunities including job-training and skills-development with an emphasis on financial literacy to help individuals understand ways to save for the future and gain assets.

Investment Process

All programs supported by United Way go through a strict review process to ensure that they are addressing the greatest needs in our community and are showing positive impact in people’s lives. Each partner receiving United Way funding must meet our standards of accountability in the following five areas: finance, legal, governance, management and program quality. This rigorous process proves United Way’s dedication to maximizing charitable dollars to have the greatest impact on the quality of life in our community. Orange County United Way is committed to accountability, strong leadership and measurable results, making United Way the best investment in our community.

ORANGE COUNTY UNITED WAY’S Orange County United Way’s vision is to improve the lives of

individuals and families in our community by moving them up

the economic ladder from crisis to self-sufficiency. United Way

maximizes charitable dollars to have the greatest impact on the

quality of life in our community.

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Orange County United Way’s Impact on Health and Human Care in Orange County

Community InvestmentsResources support community partners that address the most critical health and human care needs in Orange County. Partners receiving funds are selected through a review process and must meet strict guidelines in the areas of finance, legal, governance, management and program quality. All funded programs align with United Way’s Community Impact work to support basic needs in the areas of food, shelter, medical care and emergency services and long-term solutions through education and financial stability.

Directed InvestmentsResources directed by United Way investors that support health and human care providers throughout Orange County.

Leveraged InvestmentsResources to develop partnerships and collaboratives within our community which allow United Way to provide greater benefits to those most in need. For example, through Earned Income Tax Credit programs and financial services, United Way has helped more working individuals access tax credits and keep more of their hard-earned dollars. Additionally, United Way’s involvement has also leveraged matching funds for critical programs throughout the county such as Orange County’s emergency hotline, 2-1-1.

Program DevelopmentResources to support the development of innovative health and human care programs and collaboratives that improve systems throughout Orange County.

Measuring Success

A crucial part of measuring our success in moving people toward self-sufficiency relies on how our community defines an individual’s or family’s level of “self-sufficiency.” Orange County United Way supports the adoption of the Self-Sufficiency Standards for California,* which takes a realistic measure of the actual income needed, determined by family size, ages of children and dependents and local variations in cost to live without government subsidies in Orange County.

Orange County United Way has made available a web-based “Self-Sufficiency Calculator,” to service providers, that applies the Self-Sufficiency Standards for California to track a family’s progress out of poverty.

In addition, United Way closely monitors the success of all funded programs to ensure they have a positive impact on our community and are providing the best return for our donors’ investments.

A — Community Investments: $6.6 M

B — Directed Investments: $4.3 M

C — Leveraged Investment: $3.5 M

D — Program Development: $1.1 M

* Self-sufficiency Standards for California were developed by the Insight Center for Community Development. Visit www.unitedwayoc.org Orange County standards.

SAFETY-NET OF

CAREUnited Way supports a safety-net of

care for individuals and families that

find themselves in need of the most

basic services such as food, shelter,

medical care and emergency services.

By maximizing the ability to live

in a healthy environment with indepen-

dence and dignity, we are providing a

foundation for people to move out of

crisis and build a self-sufficient life.

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FOODOrange County United Way invests in programs that provide individuals and families with proper nutrition to maintain a healthy lifestyle.

Examples of Community Impact:

n 1,027 seniors received nutritional, home-delivered meals which improved their health and allowed them to live independently in their own home.

n 5,549 homeless and low-income individuals and families received emergency food services to alleviate and prevent hunger.

n 569 low-income individuals living with HIV/AIDS received nutritional food to enhance the effectiveness of their medical treatments and promote self-sufficiency.

2007/2008 Community Investments in Food Programs: $413,000

Elderly Nutrition Program: Provides home-delivered meals and critical care support to low-income, homebound, isolated elderly. Community Senior Services

Emergency Services Program: Provides basic needs including food, clothing and shelter to low-income individuals and families. Southwest Minority Economic Development (SMEDA)

Home Delivered Meals: This program meets the basic food needs of the elderly by providing home-delivered meals. South County Senior Services, Inc.

Meals and Case Management: In-home delivery of meals to isolated, at-risk elderly. Community Senior Services

Nutrition Services Program: Helps low-income clients living with HIV/AIDS to maintain healthy weight and improve overall well-being. AIDS Services Foundation of Orange County

WOODROW WILSON

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Orange County United Way invests in programs helping individuals and families secure and maintain safe, adequate shelter and affordable housing.

Examples of Community Impact:

n 232 homeless individuals and families received temporary shelter and case management in order to secure and sustain permanent housing.

n 170 disabled individuals received temporary lodging and support services to transition from nursing facilities to community living.

n 166 female inmates received transitional rehabilitation services to prepare for re-entering the community.

2007/2008 Community Investments in Housing / Shelter Programs: $392,000

Aftercare Program: Transitional-housing graduates attend meetings, workshops and life-skills trainings. Mercy House Transitional Living Centers

Guided Assistance to Permanent Placement: Provides access to permanent housing for low-income families and individuals. Serving People in Need (SPIN)

Housing Solutions for Disabled: Provides temporary lodging and assistance to house persons with disabilities. Dayle McIntosh Center for the Disabled

Josephine House Therapeutic Re-Entry: Provides services for female inmates in a structured therapeutic community re-entry program. Orange County Youth & Family Services

Project Independence: This collaboration helps to stabilize individuals and families with secure housing and employment opportunities by providing access to resources and case management. Provides ongoing support to clients to help them increase their earning potential and develop assets. SMEDA • United Labor Agency of Orange County • We Care of Los Alamitos

Residential Foster Care Program: Provides a home and mental-health treatment program for abused, neglected and emotionally troubled children ages 6 to 12. Canyon Acres Children and Family Services

Transitionally Homeless Family Shelter: Provides food and housing to homeless families while providing life-skills training. Thomas House Temporary Shelter

HOUSING/SHELTER

HAROLD TAYLOR

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Orange County United Way invests in programs that help individuals and families become mentally and physically healthy.

Examples of Community Impact:

n 6,029 uninsured individuals received proper medical care services to promote a healthy lifestyle at little to no cost.

n 608 seniors received physical, mental and social services to improve their overall health and well-being.

n 5,238 uninsured women received mammograms, clinical exams and early detection education for breast cancer to detect and treat breast cancer at little to no cost.

2007/2008 Community Investments in Medical Care Programs: $1,151,000

Adult Day Program: Provides a variety of health, therapeutic, recreational, nutritional, counseling and social services to serve the specialized needs of brain-impaired adults, developmentally disabled and frail elderly. Rehabilitation Institute of Southern California

Adult Day Services Program/Medical Care: Helps frail adults and persons with disabilities maintain independence through physical, occupational and therapeutic activities. Acacia Adult Day Services

Alzheimer’s Program: Helps to maintain the quality of life for those with Alzheimer’s disease or other forms of dementia. Alzheimer Family Service Center

Dental Clinic Program: Offers a full-range of dental procedures, including emergency care and prevention education for uninsured and low-income Orange County residents. Gary Center

Diabetes Program: Provides prevention, detection and treatment of diabetes for uninsured adults and children. Camino Health Center

Early Breast Cancer Detection & Education Outreach: Provides access to mammograms, clinical exams and early-detection education for uninsured, low-income women. YWCA of North Orange County

Extra Mile Transportation Program: Helps people living with HIV/AIDS access critical health services. AIDS Services Foundation of Orange County

Free Medical Clinic Program: Provides urgent care, chronic care and specialty care for low-income, uninsured individuals. Share Our Selves

Health Care Application Assistance: Provides outreach, information, application assistance and case management to Orange County families wanting to enroll in Healthy Families or Medi-Cal insurance programs. Family Support Network

Health Care Rehabilitative Services: Provides counseling and rehabilitation services to patients and family members affected by hearing loss and speech impairments. Providence Speech & Hearing Center

Infant Services Program: Helps children with developmental disabilities reach their full potential by conducting assessments, creating goals to promote skills development and educating families. United Cerebral Palsy of Orange County

Maternal Child Health Care Coordination: Provides services to low-income pregnant mothers ensuring positive birth outcomes. Maternal Outreach Management System (MOMS)

Neonatal Intensive Care Unit Parent-to-Parent Outreach: Provides support for parents of children born with significant developmental or medical disabilities. Family Support Network

Preschool Asthma Outreach:Focuses on closing the gap in asthma prevention and education to at-risk children ages 3 to 5. American Lung Association of California

Salud Mental Health Program: Provides depression support to low-income and uninsured Latino families. Latino Health Access

SCAMP Camp: Provides inner-city underprivileged asthmatic kids the opportunity to learn more about their disease and how to prevent and control asthma while enjoying camp activities. American Lung Association of California

MEDICAL CARE

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Orange County United Way invests in programs that ensure individuals and families are safe and protected from harm.

Examples of Community Impact:

n 32,508 individuals in crisis received counseling and referrals to supportive resources.

n 41,012 victims of domestic violence received education, counseling, shelter and other crisis support services to empower them to break free from the cycle of abuse.

n 1,210 at-risk youth who have come in contact with the juvenile justice system received intense diversion services to decrease illegal behavior and increase access to community resources.

2007/2008 Community Investments in Emergency Service Programs: $917,000

2-1-1 Orange County: A comprehensive information and referral system that links Orange County residents to community health and human services and support. 2-1-1 Orange County

Beverly’s House Transitional Housing for Emancipated Youth: Addresses core services for low-income and emancipated women in crisis. YWCA of Central Orange County

Crisis Hotline: Provides crisis counseling and health and human service referrals to those in need of assistance. Hotline of Southern California

Domestic Violence Crisis Program: Provides crisis support for female victims of abuse and their children. Interval House

Domestic Violence Emergency Housing: Provides underserved victims of domestic violence and their children with shelter and basic needs. Interval House

Early Intervention Drug Program: Provides counseling for youth age 12 to 18 who are in the early stages of drug use and have encountered the juvenile justice system. Orange County Bar Foundation

Homeless Prevention Program: Provides families at-risk of becoming homeless with life-skills counseling, career coaching and rent/utility assistance. Families Forward

Huntington Beach Youth Shelter: Provides crisis intervention for homeless, runaway and at-risk youth providing shelter, educational assistance, skill-building and counseling. Community Service Programs (CSP)

Independence from Dependence: Assists victims of domestic violence to become free from abuse, chemical dependence and emotional instability. Women’s Transitional Living Center

Mental Health Services for Foster Youth: Provides in-home mental health services for foster youth including counseling and case management. Canyon Acres

Personal Empowerment Domestic Violence Program: This collaboration among four domestic violence shelters works with victims to increase their knowledge, improve their safety and access available resources. Women’s Transitional Living Center • Laura’s House • Interval House • Human Options

Planting a Seed: Educates and advocates for the prevention of domestic violence among children and adults. Women’s Transitional Living Center

Residential Substance Abuse Treatment: Provides residential services for women dealing with substance abuse. Villa Center

Second Step Transitional Housing: Provides a comprehensive, highly-structured transitional housing program for battered women and children. Human Options

Shortstop: Provides juvenile crime diversion and legal education programs for at-risk youth age 12 to 18 who have encountered the juvenile justice system. Orange County Bar Foundation

EMERGENCY SERVICES

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Orange County United Way also invests in programs that address the needs of individuals who are disabled, abused, or exposed to family violence.

Examples of Community Impact:

n 1,664 families received parent education and other prevention services to improve family functioning and reduce the incidents of child abuse and family violence.

n 1,890 low-income families in crisis received support services to meet their immediate and long-term needs.

n 730 at-risk youth participated in a mentoring program where they were matched with positive role models who empowered them to recognize and live up to their full potential.

n 7,934 youth, at-risk of becoming parents at a young age, received teen pregnancy prevention education.

2007/2008 Community Investments in Other Basic Need Programs: $521,000

Basic Education for Disabled Adults: Teaches elementary academic skills and living skills to disabled individuals. Vocational Visions

Child Abuse & Neglect Prevention: Targets high-risk, underserved families facing socioeconomic challenges with parenting classes, support groups and education on child abuse and neglect prevention. Raise Foundation

Child Mentor Advocate Program: Provides one-on-one mentoring for abused and neglected children. CASA

Child Abuse Treatment Program: Provides child abuse related counseling and parent/child interactive therapy. Child Guidance Center Inc.

Comprehensive Family Support Program: Serves low-income, at-risk families and individuals, helping them meet their basic needs. Friendly Center

Family Support Services: Services provided include school readiness and after-school enrichment for children, adult ESL, literacy training and job-ready programs offered to move families toward economic self-sufficiency. Boys & Girls Club Garden Grove

Infant Services Program: Helps children with developmental disabilities reach their full potential by conducting assessments, creating goals to promote skills development and educating families. United Cerebral Palsy of Orange County

Linkages Case Management Program: Helps seniors and the disabled to remain independent and in their own homes. Council on Aging Orange County

Multidisciplinary Care Team: Provides critical in-house parenting education and family support services to at-risk Orange County children and families. Child Abuse Prevention Center

Teen Voices, Teen Choices: Provides teen pregnancy prevention education for youth. Child Abuse Prevention Center

OTHER BASIC NEEDS

LONG-TERM CHANGESTRATEGIES

In addition to ensuring a safety-net of care, Orange County

United Way also supports solutions for long-term change

focused on education and financial stability to help move

people from dependency to self-sufficiency.

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Orange County United Way recognizes the critical role that education plays in an individual’s ability to attain self-sufficiency and overall success in life. Education begins in early childhood and continues through high school graduation, post-secondary education and life-long learning.

Investments go to programs that provide:

Early Education

n Quality improvements for early childhood education centers

n Early intervention services to prepare children for kindergarten

n Resources, technical assistance and advocacy aimed at increasing the number of early education centers in Orange County, concentrating on high-need areas

Youth Development

n Preparation and support for youth to pursue education beyond high school

n After-school mentoring and tutoring

n Support and intervention aimed at reducing participation in gangs and other negative activities

Parental Involvement

n School readiness and parent involvement skills

n Resources for parents and students to help them navigate the school system

n Education on social pressures related to children and teens

Examples of Community Impact:

Early Education

n 14 early childhood education teachers achieved a combined total of 83 college units toward their bachelor’s degrees and were rewarded with stipends totaling $10,250.

n 5 early childhood education centers advanced at least one quality level on the Success By 6® Star-Quality Rating System

n As a result of United Way and community partners’ efforts, six cities in the County of Orange included child care language in their preliminary general plans, and 12 faith-based communities received assistance toward including child care services in their facilities.

Youth Development

n 17,800 youth participated in after school tutoring and mentoring programs to help them attain academic success.

n 6,800 youth participated in programs designed to help them make healthy choices and prepare them for the workforce.

Continued

EDUCATION

HENRY DAVID THOREAU

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EDUCATION CONTINUED

2007/2008 Community Investments in Education Programs: $2,400,000

Educational projects spearheaded by Orange County United Way

Success By 6 Star-Quality Rating and Improvement System (QRIS): Orange County’s first countywide system to measure and improve the quality of early childhood education centers. Orange County United Way

Local Investment in Child Care Project (LINCC): LINCC works to increase investments in child care programs through advocacy, community outreach and extending resources to potential child care operators. Orange County United Way

Developmental Assets Project: Employs the Search Institute’s 40 Developmental Assets youth-development programs to build assets in children and youth that will foster success in life. Orange County United Way

Early Education

Club School Readiness: Ensures that children from low-income families begin their school careers ready to learn. Boys & Girls Club Laguna Beach

Jumpstart Early Intervention Language Preschool Program: Provides specialized programs addressing children’s hearing, speech and language skills. Providence Speech & Hearing Center

Out-of-School Care Program: Provides free or low-cost child care for working parents. Boys & Girls Club of Laguna Beach

Preschool Accreditation Program: Works to attain and sustain accreditation from the National Association for the Education of Young Children for the Learning Center Preschool and Golden West College Child Development Center. Boys & Girls Club of Huntington Valley

Preschool Program: Early childhood education centers for high-risk children. Orange Children & Parents Together

Tuition Assistance: Provides tuition assistance to low-income working families for child care. Hands Together

Youth Development

Adolescent Pregnancy Prevention: Helps girls develop educational, career and life goals. Girls Inc.

After-school Education Program: Provides high-quality, affordable after-school care for children of low-income, working families. Abrazar • Boys & Girls Club of Huntington Valley • THINK Together

Career Prep: Provides counseling and employment preparation to youth ages 14 to 18. Boys & Girls Club Santa Ana

Children and Youth Development: Trains children to become leaders within their communities. Latino Health Access

College Bound Programs: Assists children to be academically successful and prepare for college. AVID • Boys & Girls Club La Habra/Brea • Camp Fire USA • El Viento • Girls Inc. • Hispanic Scholarship Fund • KidsWorks • Orange County Community Housing Corp. • Orange County Asian and Pacific Islander Community Alliance • Saint Joseph Ballet • The Cambodian Family

Comadres en Accion: Provides a wide variety of learning experiences for low-income, English-language learners. Girl Scout Council of Orange County

Docent Science Program: Enrichment program designed to increase the teacher pipeline, encourage students to consider taking advanced science in high school and college and improve skills such as critical thinking, problem-solving and communications. Project Tomorrow

GRIP Dropout Prevention: Provides mentoring, tutoring, youth development and organized activities. Boys & Girls Club Westminster

Lean Health Program: Comprehensive health, fitness and wellness curriculum targeting children ages 3 to 16. Boys & Girls Club Buena Park

Mentoring Program: Provides adult mentors to at-risk youth ages 6 to 17. Big Brothers Big Sisters of Orange County

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Motel Outreach: Transports children living in motels to after-school and youth development programs. Boys & Girls Club of Cypress

Power Hour & Project Learn: Provides tutoring, homework assistance and leadership-skill building to youth. Power Hour: Boys & Girls Clubs of Fullerton and Santa Ana Project Learn: Boys & Girls Clubs of Fullerton and Westminster

Right Trak: Helps low-income youth who are behind in school and/or involved in delinquent behavior to develop skills and avoid gangs and drugs. Boys & Girls Clubs of Tustin, Santa Ana and Anaheim

Scholarship Programs: Provides college scholarships to low-income youth. AVID • Boys & Girls Club Alliance • Cal State Fullerton Guardian Scholars • Hispanic Scholarship Fund • Orange County Asian and Pacific Islander Community Alliance • Saint Joseph Ballet

Sea Tech: Provides students from underserved populations with intensive oceanographic research experiences. Boys & Girls Club Capistrano Valley

Success For All: Provides free tutoring, skill-building and computer lab use to low-income youth. Friendly Center

Teens In Action: Provides programs that teach and support life skills and leadership development. Camp Fire USA

Twighlight Education Project: Provides English language education. Boys & Girls Club Huntington Valley

Walk-In Youth Services: Provides youth ages 14 to 22 with pre-employment and life-skills training. Youth Employment Services of the Harbor Area

Youth Development Program: Provides social, recreational and educational programs for youth. Los Alamitos Youth Center

Youth Development & Leadership: Provides low-income Asian and Pacific Islander youth with the skills to pursue college. Orange County Asian and Pacific Islander Community Alliance

Parental Involvement

Family Support Services: Provides a range of services including school readiness, adult literacy classes and job-ready programs. Boys & Girls Club Garden Grove

Sharing Health Adolescent and Parent Experiences: Teaches low-income families how to deal with social pressures and empowers parents to talk to their children about teen pregnancy prevention. Camp Fire USA Orange County Council

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Investments go to programs that provide:

n Education for individuals and families through comprehensive financial literacy programs and workshops

n Neighborhood-based programs focused on helping individuals achieve long-term economic security

n Access to free income tax preparation days that provide information on the Earned Income Tax Credit (EITC), how to build savings and how to gain and sustain assets

Examples of Community Impact:

n 39 neighborhood financial literacy workshops were delivered throughout Orange County.• 700 individuals participated in workshops• 56 families enrolled in subsequent financial counseling services• 42 participants opened first-time checking and/or savings accounts

n 284 high-risk girls completed programs focused on teaching them to be in charge of their financial lives and inspiring them towards entrepreneurship.

n Over 400 individuals obtained job development training that guided and prepared them to seek employment.

n 157 adults have secured employment and increased their wages as a result of job counseling.

n Over 50 women enhanced their abilities and knowledge of job search resources by developing specific skills that strengthen their employability.

n Over 3.4 million Federal dollars and other combined tax credits, such as the Earned Income Tax Credit (EITC), were returned to low-income working families in Orange County.

n 3,215 working individuals and families were assisted with free tax preparation.

2007/2008 Community Investments in Financial Stability Programs: $796,000

Financial Stability project spearheaded by Orange County United Way

Orange County Earned Income Tax Credit Coalition: Provides free financial literacy courses and tax preparation services to low-income families and individuals. Legal Aid Society • Orange County United Way • Neighborhood Housing Services of Orange County • Internal Revenue Service

Financial LiteracyAdult Education Program: Provides educational programs to help improve the financial stability of low-income families and individuals. Abrazar

Building Financial Literacy: Teaches socio-economically disadvantaged girls ages 7 to 17 financial literacy concepts including saving, goal-setting and budgeting. Girl Scout Council of Orange County

Financial Literacy Program: Helps women recovering from domestic violence, substance abuse or homelessness to secure employment and teaches them how to manage their money. WISEPlace

Girls Financial Literacy Programs: Provides economic literacy programs for young girls from low-income families. Girls Inc.

Asset Building

Employment Services for Disabled: Offers support to persons with developmental disabilities enabling them to find, obtain and retain employment, increase earnings and live independent lives. Orange County ARC• Vocational Visions

Employment Success: Offers low-income women free access to a comprehensive employment acquisition programs. Women Helping Women

Families First: Provides low-income families employment, health education, family services and social and community development programs. Community Action Partnership of Orange County

Financial Fitness & Homebuyer Education: Provides financial literacy courses to low-income families and individuals. Neighborhood Housing Services Orange County

FINANCIAL STABILITY

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Hands of Hope Job Training: Provides underemployed individuals with specific skill-building opportunities that increase job stability and earning potential. Giving Children Hope

Job Development & Placement: Provides transitional housing coupled with career development for battered women. Human Options

Job Placement Program: Helps individuals with disabilities organize and conduct a job search. Goodwill Industries of Orange County

Medical Careers Academy: Provides low-income Latino women with medical training to help them secure better paying jobs. Taller San Jose

Steps to Independence: Assists homeless women to secure housing and employment. WISEPlace

Women Looking Forward: Provides services and support to low-income women who have faced job termination, divorce or domestic violence to enable them and find stable employment. Jewish Family Services of Orange County

NORMAN MACEWAN

LEVERAGINGPARTNERSHIPSOrange County United Way is committed

to achieving significant impact through-

out our county in the area of health and

human care. We know this can only be

accomplished through strong alliances

with our dedicated corporate, donor and

community partners who share a com-

mon goal to build self-sufficient lives and

strengthen our community.

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Dimensions in Giving Partner

Orange County United Way would like to recognize and thank our Dimensions in Giving partner, UPS. The Dimension in Giving

award is given to the partner that stands out as truly impacting our community through dollars raised for United Way’s Community Impact work, active community service and an overall commitment to helping people though contributions of time, leadership, resources and a spirit of giving.

Golden Key Partners

Orange County United Way would like to thank our Golden Key partners. The Golden Key distinction is awarded to companies and firms that demonstrate their commitment to impacting people’s lives in our community by raising the most dollars during our annual campaign for United Way’s Community Impact work.

Advanced Sterilization Products n Alcon Research, Ltd. n AT&T n Automobile Club of Southern California n Bank of America n Costco Wholesale n County of Orange n Deloitte Enterprise Rent-a-Car n Ernst & Young, LLP n Fed Ex n Fluor Corporation n Hoag Memorial Hospital Presbyterian n Nordstrom n Pacific Life Insurance Company n Snell & Wilmer L.L.P. n Southern California Edison n Target n The Boeing Company n UPS n Washington Mutual Bank n Wells Fargo

Spirit of Orange County Partners

Orange County United Way would like to thank our Spirit of Orange County partners. These companies and firms demonstrate their commitment to impacting people’s lives in Orange County through annual corporate investments of $100,000 or more in United Way’s Community Impact work.

Advanced Sterilization Products n Alcon Research, Ltd. n Automobile Club of Southern California n Enterprise Rent-a-Car n Pacific Life Insurance Company n Southern California Edison n The Boeing Company n UPS

OUTSTANDING CORPORATE PARTNERS

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More than 2,000 Orange County individual leaders LIVE UNITED and set a true example through their generous giving to United Way. Our Leaders’ Society and Tocqueville Society recognize leaders investing $1,000 or more annually in the work of Orange County United Way. Within these circles are additional opportunities for donors with similar interests to collectively address the needs in our community with other like-minded individuals.

The following describes in more detail the unique donor circles offering opportunities for affiliation and involvement within our Leaders’ and Tocqueville Societies.

Leaders’ Society

Individuals who exemplify a strong commitment to improving the quality of life in our community by investing $1,000–$9,999 to build self-sufficient lives.

Circles within the Leaders’ Society include:

Women Looking ForwardConsists of more than 140 women philanthropists.

Orange Impact CircleConsists of more than 80 individuals who invest 100% of their gift in Orange County United Way’s Community Impact work.

Tocqueville SocietyMore than 300 Orange County leaders who exemplify an outstanding commitment to improving the quality of life in our community by investing $10,000 or more to build self-sufficient lives.

Circles within the Tocqueville Society include:n Women’s Philanthropy Fund: Consists of more than 100 women philanthropists. nBench & Bar: Consists of more than 60 attorneys and judges. nReal Estate Community Builders: Consists of more than 60 real estate and building professionals.

Orange Impact SocietyThe Orange Impact Society recognizes founding members who, as of 2007, gave $20,000 or more annually, and members who invest $10,000 or more annually in Orange County United Way’s Community Impact work to build self-sufficient lives.

Million Dollar Challenge MatchIn 2007/2008, we engaged in a partnership to double the impact of Tocqueville Society members’ increased investments in United Way’s Community Impact work through a newly launched Tocqueville Society Million Dollar Challenge Match. This challenge match was made possible thanks to the generosity of Tocqueville Society members Ranney and Priscilla Draper, Peter and Gail Ochs, Jack and Kingsley Croul and Max and Artyn Gardner.

Endowment For Orange County’s FutureIn 2005, Orange County United Way launched an Endowment Fund to ensure that United Way will always provide care for our community, regardless of the economic climate we face. The Endowment Fund will ultimately generate the investments needed to offset our operating costs, allowing more dollars to go directly into our community.

DONOR PARTNERSHIPS

BONIFACE VIII

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Orange County United Way engages in the following community partnerships:

2-1-1 Orange County

2-1-1 is a federally designated, but locally funded 3-digit telephone number that enables people to access vital community health and human services at no cost to the caller.

Orange County United Way assisted with the initial planning of this system and currently provides funding for 2-1-1 in our community. Other partners instrumental in the launch of 2-1-1 include the Children and Families Commission of Orange County and the County of Orange.

Continuum of Care Partnership

Orange County’s Continuum of Care planning process is rooted in the community, specifically through the Continuum of Care Community Forum. Any person or group that wants to contribute to these efforts to eliminate homelessness in Orange County are encouraged to join.

Health Funders Partnership of Orange County

The mission of the Health Funders Partnership of Orange County is to improve local health by enhancing the impact and efficiency of health philanthropy in Orange County through collaboration. The Partnership attains this mission through (1) gathering, sharing and dissemination of information, thereby creating a learning community for health philanthropists and (2) identification of strategic issues for action and collaborative funding consistent with the mission and the management of these projects. Orange County United Way actively participates on the Board of Directors and provides matching funds for special projects.

Homeless Provider Forum

The Homeless Provider Forum meets once a month with membership consisting of supportive service agencies, health care providers, public agencies and individuals dedicated to ensuring that the homeless have the resources they need. Goal: Improving the region’s shelter base and supportive services for the homeless including development of new emergency and transitional beds, providing support to the Cold Weather Armory program and the facilitation of collaborative partnering.

Latino Educational Attainment (LEA) Initiative

The Latino Educational Attainment (LEA) initiative helps Latino parents be more effective advocates for their children, particularly when it comes to their education. The Orange County Business Council acts as facilitator of parents, schools, community groups and existing programs to leverage resources and address gaps. Orange County United Way staff assists with the project’s long-term goal to create neighborhood-based groups that will provide navigational skills to parents in areas surrounding the 100 lowest performing schools in the county.

Multi-Ethnic Leadership Institute (MELI)

Orange County United Way created and now partners with Santa Ana College to provide an interactive course designed to enhance leadership skills of young professionals by helping them gain knowledge on diversity issues and build meaningful relationships in the community.

National Children’s Alliance

National Children’s Alliance is the national membership and accrediting organization for the more than 600 Children’s Advocacy Centers located throughout the United States. These Centers provide services to thousands of sexually abused children each year. In 2005, 160,000 children were offered services. Orange County United Way’s President and CEO, Maria Chavez Wilcox, has been appointed to the National Children’s Alliance Board of Directors as a Director-at-Large.

Continued

COMMUNITY PARTNERSHIPS

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Orange County Child Care Connections Collaborative

Two of the greatest challenges facing Orange County are the lack of space for additional child care facilities to be built and the cost of commercial space for lease or purchase. To address these challenges, Orange County United Way’s Local Investment in Child Care (LINCC) Project has formed the Orange County Child Care Connections Collaborative. Funded by Affordable Buildings for Children’s Development, a program of the Low Income Investment Fund with major funding from First 5 California, this collaboration is founded on the belief that through building partnerships, Orange County can build the solution to the need for child care.

Orange County Business Council’s Workforce Development Initiative

Orange County United Way participates on the Orange County Workforce Development Committee, which leads the Orange County business community in efforts to ensure a high quality work force is available to support the increasingly technology-based workplace. There will be direct emphasis on the development of math and science skills that will meet employer’s workforce needs.

Orange County Child Care and Development Planning Council

The council is jointly appointed by the Board of Supervisors and the County Superintendent of Schools. United Way represents community-based organizations and the consumer category and leads the council. United Way staff also serve on the Steering Committee, the Community Awareness Outreach Committee, the Public Policy and the Capacity Building Committees. The Council also is a member of the Orange County Child Care Connections Collaborative.

Orange County Community Housing Corporation (OCCHC)

Orange County Community Housing Corporation’s mission is to transition extremely low-income families towards greater self-sufficiency by assisting them with housing and education. Orange County United Way staff serve on the board of directors for the Orange County Community Housing Corporation and on the education committee of this group.

Orange County Earned Income Tax Credits Coalition (EITC)

The Earned Income Tax Credit (EITC) Coalition provides access to tax credits and wage supplements for low-to-moderate income working families. This is considered the nation’s largest and most powerful anti-poverty program and has the support of the First Lady of California, Maria Shriver. As a result of Orange County United Way’s efforts to engage United Ways across the state in promoting the EITC, Mrs. Shriver chose Orange County to launch her statewide campaign in 2007. Orange County United Way partners with the Legal Aid Society of Orange County, the cities of Santa Ana and Irvine, and numerous financial partners to provide free tax preparation days which help families access the EITC.

Orange County Emergency Food and Shelter Board

Orange County United Way is a member of the Orange County Emergency Food and Shelter Program. This public/private partnership is a coalition of volunteers established to administer the distribution of federal emergency assistance funds in accordance with public laws, including the Stewart B. McKinney Homeless Assistance Act. The Board was created in 1983 to supplement the work of local social service organizations to help people in need of emergency assistance.

Orange County Founders Roundtable

The Orange County Founders Roundtable is a collaborative committed to promoting capacity building in the nonprofit sector. Orange County United Way’s CEO is an active member on the roundtable’s board of directors.

Collaborating Organizations Active in Disasters (COAD)— Orange County

Collaborating Organizations Active in Disasters represents a group of community partners who meet monthly to structure a coordinated and comprehensive plan that would identify and mobilize resources for a community-wide disaster response, relief and recovery effort.

Leadership partners include 2-1-1 Orange County, Orange County Red Cross and Volunteer Center Orange County. Active members include Southern Baptist Disaster Relief, Saint Vincent de Paul, Salvation Army, Tzu Chi Foundation, Orange County

COMMUNITY PARTNERSHIPS CONTINUED

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Department of Education, One-Stop Center Irvine, Church of Jesus Christ of Latter Day Saints, Hope Force, Victim Relief Ministries, OC Community Resources, Office on Aging, SCART, Second Harvest, Goodwill of Orange County, Orange County Community Foundation, Operation OC, Orange County Sheriff’s Department and FEMA.

OC Partnership

OC Partnership exists to strengthen public and private agencies serving the homeless and those at risk of homelessness in Orange County. United Way participates on the board of the OC Partnership.

Orange County Workforce Investment Board

The Orange County Workforce Investment Board (OCWIB) is a partnership with the Orange County Board of Supervisors, which oversees Orange County’s workforce development activities and establishes programs in response to the workforce needs. OCWIB designs and implements programs and services for business, adults, youth and dislocated workers in accordance with its five-year strategic local plan. The strategic plan describes the board’s commitment in establishing a comprehensive workforce development system for Orange County. Additionally, this system operates through One-Stop Career Centers, and satellite centers, conveniently located throughout the County. Each Center offers a wealth of training, information and assistance for businesses and job seekers. United Way participates on the Orange County Workforce Investment Board of Directors.

Point-in-Time Homeless Count and Survey

The Point-in-Time Count and Survey of the Homeless Project is conducted biannually and includes a one-night count of sheltered and unsheltered homeless. The count and survey are conducted nationally to ensure uninterrupted HUD funding for homeless shelters and supportive services. This project was conducted in collaboration with the County Of Orange, Housing and Community Services Department, 2-1-1 OC, OC Partnership, Social Science Research Center at California State University, Fullerton, Orange County Continuum of Care Collaborative, Orange County United Way and more than 450 community volunteers.

Right Trak Program

Right Trak is a joint venture between the Boys and Girls Clubs of Tustin, Santa Ana and Anaheim, The Orange County District Attorney’s Office, Orange County Probation Department, Orange County Department of Education and Orange County United Way. The program addresses the root causes and long-term solutions for gang participation and violence among Orange County’s most at-risk youth.

Safe From the Start Coalition

Safe From The Start is a state initiative started by the California Attorney General that aims to raise awareness and prevent the impact of exposure to violence among young children. United Way staff participates on as a member of the Orange County Safe From The Start Coalition.

JOHN ANDREW HOLMES

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ORANGE COUNTY UNITED WAY FINANCIAL STATEMENTS

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NOTES TO FINANCIAL STATEMENTS1. Summary of Accounting Policies

Organization

Orange County United Way (the “United Way” or “Organization”) is an incorporated not-for-profit organization. The United Way’s mission is to measurably improve the quality of life for Orange County, California residents by focusing all available resources to impact health and human service priorities. Funding is focused on two areas. United Way funds a safety-net of care in Orange County to ensure that basic needs such as, food, shelter, medical care and crisis support are met and funds solutions for long-term change focused on education and financial stability to move people from dependency to self sufficiency.

Tax Status

The Organization is exempt from income taxes to the extent provided under Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for income taxes is included in the accompanying financial statements.

Basis of Accounting

The United Way follows the accounting provisions prescribed by Statement of Financial Accounting Standards (“SFAS”) No. 116, Accounting for Contributions Received and Contributions Made, and SPAS No. 117, Financial Statements of Not-for-Profit Organizations. SPAS No. 116 requires, among other things, the recognition at fair value of contributions received, including unconditional promises to give, in the period received. SFAS No. 117 establishes standards for general purpose external financial statements. Focusing on the entity as a whole, SFAS No. 117 requires that all not-for-profit organizations provide a statement of financial position, a statement of activities and changes in net assets and a statement of cash flows and that net assets and changes in net assets be classified as unrestricted, temporarily restricted or permanently restricted.

Unrestricted net assets — Net assets that are not subject to donor imposed stipulations. These assets are available to support United Way’s activities and operations at the discretion of the Board of Directors.

Temporarily restricted net assets — Net assets subject to donor-imposed stipulations that will be met either by actions of the donor, the Organization and/or the passage of time.

Permanently restricted net assets — Net assets subject to donor imposed stipulations that require the principal be maintained in perpetuity and only the income from the investment be expended for purposes specified by the donor, if any.

Revenues are reported as increases in unrestricted net assets unless 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 are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulations or by law. Expirations of temporary restrictions on net assets are reported as reclassifications between the applicable classes of net assets.

The financial statements include prior year summarized comparative information in total, but not by the classifications required by SFAS No. 117. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Organization’s financial statements as of and for the year ended June 30, 2007, from which the summarized information was derived.

Subclassifications of Revenues and Support

Donor-Imposed Restrictions — All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or are restricted by the donor for specific purposes are reported as temporarily restricted support.

Donors may designate their contribution to specific United Way affiliated and nonaffiliated agencies. Nonaffiliated agencies are required to provide United Way with documentation of tax-exempt status. Donor designations to specific agencies are reduced from revenue to arrive at total net revenues and other support in the accompanying statements of activities. Changes in donor designations to specific agencies made subsequent to the close of the fiscal year are reflected as part of net campaign contributions in the following year. Donor advised contributions are recorded as revenue when contributions are pledged, and designation of such contributions to other organizations are recorded as donor designations.

Promises to Give — Donors typically pay total promises to give within a 12 to 18 month period. The commencement date of payments will vary among donors. Unconditional promises to give are recorded at their net realizable value. Long-term promises to give are recorded at the present value of estimated future cash flows using an appropriate discount rate. Conditional promises to give are not included as support until such time as the conditions are substantially met and both the timing and the value of the promise are known with reasonable certainty. The United Way provides an allowance for estimated uncollectible pledges at the end of each campaign year based upon historical collection experience and current conditions.

Contributed Property and Equipment — Contributed property and equipment are recorded at fair value at the date of donation. If donors stipulate a time or use restriction, the contributions are recorded as temporarily restricted support. In the absence of such stipulations, contributions of property and equipment are recorded as unrestricted support.

Donated Services and Materials — Donated services are recorded at fair value at the date of donation only if the services: (a) create or enhance nonfinancial assets or (b) require specialized skills that are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation. Donated materials are recorded at fair value as revenue

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on the date of donation and as an increase to assets and decrease to liabilities or expense, depending on the benefit received. In the absence of donor-imposed restrictions, contributed materials are recorded as unrestricted revenue.

The Organization recorded $2,524 and $196,896 of donated property and materials (“in-kind contributions”), which are reflected in the statement of activities as unrestricted revenues for the years ended June 30, 2008 and 2007, respectively. Unrestricted, in-kind contributions primarily represent supplies, office equipment, computer equipment and other miscellaneous donated goods.

A substantial number of volunteers and corporations have donated their time and services to the United Way. No amounts have been reflected in the financial statements for donated services, as no objective basis is available to measure the fair value of these services.

Concentration of Risk

Financial instruments which potentially subject the Organization to concentration of credit risk consist primarily of pledges receivable, substantially all of which are from individuals, businesses or nonprofit organizations in Orange County, California and surrounding areas. Concentration of credit risk is limited due to the large number of donors comprising a majority of the Organization’s donor base. As of June 30, 2008, the Organization does not consider itself to have significant credit risk with respect to its pledges receivable.

At various times throughout the year, the Organization may have cash balances in financial institutions which exceed the amounts which are federally insured.

Pledges Receivables

Pledges receivables are typically due within 12 months from the date of pledge. Any multi-year pledges received by the Organization are discounted based on the terms of the pledge and an appropriate discount rate (see Note 4). The Organization had no significant concentrations, except for the Organization’s Endowment Fund campaign revenue and related pledge receivables (permanently

restricted), which are comprised of three donors and the Organization’s multi-year pledges for which two donors comprise approximately 69% of the outstanding multi-year pledge balance at June 30, 2008 (see Note 4). The Organization has recorded an allowance for uncollectible pledges based on historic experience and current conditions. The Organization recorded $959,634 and $864,575 in uncollectible pledge expense for the years ended June 30, 2008 and 2007, respectively.

Allocations

Allocations of expenses by the Organization for community investments, grants and initiatives and community services are recorded as an accrual when the Organization has incurred an obligation, which generally occurs at the time the Organization’s Board of Directors approves specific allocation amounts to specific beneficiaries.

Designations Payable

Designations payable are recorded at the time the related pledge is received and consists of pledges by donors that are designated to specific agencies at the time of pledge. Amounts are remitted to the beneficiary agencies as the related pledges are received from the donors. Designation payables are typically due within 12 months from the date of the original pledge.

Investments

Investments are carried in the aggregate at fair value in accordance with Statement of Financial Standards (“SFAS”) No. 124, Accounting for Certain Investments Held by Not-for-Profit Organizations. SFAS No. 124 requires that investments in equity securities with readily determinable fair values and all investments in debt securities be reported at fair value with gains and losses included in the statement of activities. Fair value is determined based on quoted market prices. Net unrealized losses (gains) on investments of $232,823 and ($401,769) are included in interest and other income in the statements of activities and change in net assets for the years ended June 30, 2008 and 2007, respectively.

The United Way’s investments consist of equity, fixed-income and other investment securities (see Note 2). Investment securities are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that the changes in risks in the near term could materially affect the investment amounts reported in the financial statements.

Property and Equipment

Equipment, furniture and fixtures are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets, ranging from 3 to 10 years. Building and improvements are stated at cost and depreciated using the straight-line method over their estimated useful lives, generally ranging from 10 to 25 years.

Cash and Cash Equivalents

The United Way considers all highly liquid investments, which are readily convertible to known amounts of cash and which have an original maturity of three months or less when purchased to be cash equivalents. As of June 30, 2008 and 2007, cash and cash equivalents consisted primarily of money market funds and deposits with three financial institutions.

Use of Estimates

The 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 materially differ from those estimates.

Continued

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2. Investments

Unrestricted investments consist of the following at June 30:

2008 2007

Fixed income securities $ 1,713,272 $ 1,655,369Equity securities 674,722 762,276

Total $ 2,387,994 $ 2,417,645

Permanently restricted investments consist of the following at June 30:

2008 2007

Fixed income securities $ 330,685 $ 375,705Equity securities 651,677 656,405

Total $ 982,362 $ 1,032,110

3. Property and Equipment

Property and equipment consist of the following at June 30:

2008 2007

Land $ 722,039 $ 722,039Building 2,089,639 2,089,639Building improvements 1,366,199 1,349,192Furniture and equipment 1,867,113 1,816,749

6,044,990 5,977,619Less accumulated depreciation (4,151,338) (3,929,855)

Property and equipment, net $ 1,893,653 $ 2,047,764

Depreciation totaled $221,481 and $274,890 during the years ended June 30, 2008 and 2007, respectively.

4. Pledges Receivables

Endowment Fund

The Organization has established an Endowment Fund which operates under the Endowment Guidelines established and approved by the Board of Directors. The principle objective of the Endowment Fund is to provide a source of income to help fund the Organization’s operational costs, thereby providing some protection against fluctuations in annual campaign revenue and maximizing the amount of resources

focused on the community’s most critical issues. Oversight is performed through the Endowment Advisory Cabinet that monitors and makes recommendations to the Board of Directors. The Board of Directors maintains governance over the Endowment Fund.

In previous years, the Organization received pledges representing unconditional promises to give through its Endowment Fund campaign. No amounts were received during fiscal year 2008 and 2007. The pledges are multi-year pledges containing original payment terms ranging over a period of four to ten years. The multi-year pledges were discounted at the date of pledge, using rates approximating 4.6%. Amortization, net of additional discounts, totaled $(66,970) and $76,439 for the years ending June 30, 2008 and 2007, respectively. Endowment Fund campaign contributions are subject to donor imposed stipulations that require the principal be maintained in perpetuity and only the income from the investment be unrestricted. Accordingly, the discounted pledges are reflected as permanently restricted on the statement of activities and changes in net assets.

Included in Endowment Fund campaign pledges receivables, permanently restricted, are the following unconditional promises to give:

2008 2007

Unconditional promises to give $ 1,304,993 $ 1,409,992 Less: Unamortized discount (254,277) (187,306)

Net unconditional promises to give 1,050,716 1,222,686Less: Current portion (100,000) (200,000)

$ 950,716 $ 1,022,686

Endowment Fund campaign pledges receivables as of June 30, 2008 are due as follows:

Years ending June 30,

2009 $ 100,0002010 100,0002011 100,0002012 200,0002013 and thereafter 804,993

Total $ 1,304,993

Unrestricted Multi-Year Pledges

As of June 30, 2008 and 2007, the Organization has multi-year pledge receivables outstanding totaling $9,139,550 and $7,505,384, respectively, which contain original payment terms ranging over a period of three to 10 years.

NOTES TO FINANCIAL STATEMENTS CONTINUED

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Unrestricted multi-year pledges consist of the following at June 30, 2008 and 2007:

2008 2007

Unconditional promises to give $ 9,139,550 $ 7,505,384 Less: Unamortized discount (122,257) (142,122)

Net unconditional promises to give 9,017,293 7,363,262Less: Current portion (1,071,047) (1,127,000)

$ 7,946,246 $ 6,236,262

Unrestricted multi-year pledge receivables as of June 30, 2008 are due as follows:

Years ending June 30,

2009 $ 1,071,0472010 1,118,5032011 1,153,0002012 1,127,0002013 and thereafter 4,670,000

Total $ 9,139,550

5. Net Assets

Net assets consist of the following at June 30:

2008 2007

UnrestrictedAppropriated — stabilization $ 3,222,063 $ 3,087,355Appropriated — initiatives 1,097,477 2,807,990Appropriated — general 60,558 59,749Appropriated — property and equipment 1,893,653 2,047,764Unappropriated 4,163,992 981,550

Total unrestricted 10,437,743 8,984,408Temporarily restricted 373,490 —Permanently restricted 2,107,853 2,266,300

Total $ 12,919,086 $ 11,250,708

The Board of Directors of United Way has appropriated a portion of the current unrestricted net assets to ensure that program services and operations can be maintained for a period of time in the event of emergencies or economic downturns. The targeted stabilization reserve level is an amount equal to, but not to exceed,

four months of estimated community allocations plus four months of estimated operating costs. The amount appropriated did not exceed such estimated threshold at June 30, 2008 and 2007. In July 2008, April 2007 and July 2006, the Board of Directors authorized the Organization to transfer $543,000, $755,000 and $550,000, respectively, from the stabilization fund for use in operations. As of September 30, 2008, management of the Organization estimates approximately $900,000 is needed to return the stabilization reserve to its targeted level of $3.6 million.

6. Retirement Plan

The United Way sponsors a defined-contribution retirement plan, which covers substantially all employees. The United Way will contribute a minimum of 7% of employees’ annual compensation. In addition, the United Way will make an employer-matching contribution equal to 50% of the first 4% of the employees’ contributions up to Internal Revenue Service legal limits. The United Way’s contributions to the plan were approximately $164,900 and $184,400 for the fiscal years ending June 30, 2008 and 2007, respectively.

7. Commitments and Contingencies

Leases

The Organization is obligated under noncancelable operating leases for various types of equipment. Future minimum annual lease payments at June 30, 2008 are as follows:

Years ending June 30,

2009 $ 42,0002010 22,000

$ 64,000

Rental expense of approximately $116,000 and $133,000 was incurred for years ending June 30, 2008 and 2007, respectively.

Legal Proceedings

The Organization currently has no significant lawsuits, actions, or other legal proceedings pending claims against them. However, the Organization could, from time to time, be involved in litigation proceedings arising out of its normal course of business.

8. Related Party Transactions

During the fiscal years ending June 30, 2008 and 2007, the Organization incurred marketing expenses of approximately $21,275 and $148,400, respectively, with an entity owned by an individual who was a member of the Organization’s Board of Directors through September 30, 2007.

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Fred J, Grigsby Jr., Lisa Locklear, Maria Chavez Wilcox, Douglas P. McCombs, Al DeGrassi

BOARD OFFICERS Fred J. Grigsby, Jr.* / SecretaryCommunity Volunteer

Lisa Locklear* / TreasurerIngram Micro Inc., Senior Vice President and Chief Financial Officer

Maria Chavez Wilcox* / President & CEOOrange County United Way, President & CEO

Douglas P. McCombs* / Chairman of the BoardGrant Thornton LLP, Assurance Partner

Al DeGrassi* / Vice Chair of the BoardAlliance Bank, Senior Vice President, Corporate Banking

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Steven D. Allison*Dorsey & Whitney LLP, Partner

Betsy BankerBank of America, Vice President, Mtg RtlL Lndng, Branch Mgr-NP

John Carpino Angels Baseball, Senior Vice President

Peter Case*Case Communications, Principal

Kathleen Davis BowmanWISEPlace, Executive Director

Max Gardner*Irvine Company, President, Irvine Apartment Communities

Carol J. Geffner, Ph.D. Geffner & Associates, President

William M. HabermehlOrange County Dept. of Education, County Superintendent of Schools

Jim HarringtonO’Leary and Partners, President

Michael JohnsonAutomobile Club of Southern California, Senior VP Member Services & Administration

George W. KayeWashington Mutual, Senior Vice President, Consumer Banking

Robert E. KentArrow ECS, Vice President of Sales — U.S. West

Knute KurtzPricewaterhouseCoopers LLP, Managing Partner

Ken Lickel*Alcon Research LTD., Vice President/General Manager, Irvine Technology Center

John MansourThe Athens Group, Vice President

Gregg MartinThe Boeing Company, Vice President & Program Manager, Future Combat Systems IDS

Duane McMurtreyEnterprise Rent-A-Car, Group Vice President, Rental

Nancy Meyer Buttoned Up, Inc., Founding Partner

Robert E. PalmerGibson, Dunn & Crutcher LLP Partner

Sue Parks*WalkStyles, CEO

Lisa PerrineCibola Systems, President

Richard PorrasAT&T California, Executive Director External Affairs

Tony Rackauckas Office of the District Attorney, District Attorney

Nicholas Reichert*Irvine Company, Vice President, Accounting

Tom Rogers*City National Bank, Executive Vice President

Michael RussellMohr Partners, Inc., Managing Partner

Mike SalmonMadison Street Partners, Partner

Robert E. TarltonFord Motor Company, Community Affairs Manager, Premier Automotive Group

Jerome P. Thode*Tatum Partners, Regional Practice Leader, West Region Technology Partner

Nella Webster O’GradyFirst Foundation Bank, Senior Vice President, Trust Services Manager

George WillisUPS, Southern California Vice President / District Manager

BOARD OF DIRECTORS

* Members of the Executive Board

Maria Chavez WilcoxPresident/Chief Executive Officer

Juan Carlos Araque, Ph.D.Vice President, Community Investments

Susan CaumiantVice President, Marketing

Mike GreeneVice President, Information Technology

Brie GrisetVice President, Investor Relations

Carla Vargas RivasVice President, Investor Relations-Major Gifts

Terri SutroVice President, Human Resource

Taryn VidovichVice President, Finance/Controller

SENIOR STAFF

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orange county united way

18012 Mitchell Avenue,Irvine, CA 92614n949.660.7600nFax 949.724.3039nwww.unitedwayoc.org