United Way Goal $90 Million Despite Management Probe

Insisting that the controversy over their management problems is behind them, Los Angeles-area United Way officials said Monday that they will attempt to raise a record $90 million in this year’s fund drive.

In announcing the ambitious goal, campaign chairman David Anderson said he believes donors will continue to support the charity, even though a second investigation of United Way’s finances is still under way.

“There’s been controversy this summer over certain administrative issues and (we’ve) been distracted,” said Anderson, president and chief executive officer of General Telephone of California. As a result, the fund drive already is eight weeks behind schedule and is short of needed volunteers.

But “if people (fail to contribute), that would deprive agencies of funding and there would be a terrible impact . . . We believe our citizens will understand what United Way is all about and will contribute,” Anderson said at a press conference, where he was flanked by Boy and Girl Scouts and workers from the Salvation Army, the Red Cross and other member agencies.

Two weeks ago, a citizens panel probing the charity’s internal workings criticized top officials and volunteers for using flawed judgment in authorizing several “improper” financial transactions, including lending donated money to United Way executives. The panel also recommended broad changes in the charity’s administration, and many of them already are being implemented, Anderson said.

“I believe the report of the citizens committee and the response of our board of directors . . . does remove the cloud,” Anderson said. “But communications (with the public) have to take place and we’ll continue to do that.”

A second probe of the nonprofit agency’s finances--this one expected to focus on possible illegalities--is scheduled for completion about Sept. 30. That investigation is headed by Los Angeles County Counsel DeWitt Clinton.

When asked Monday if the charity could recover sufficiently from last summer’s disclosures to raise $90 million, United Way President Francis X. McNamara would only say, “I think the United Way still is seen in the public light as a very valuable entity.”

McNamara, who had been on a paid leave of absence while the citizens committee scrutinized the controversial financial dealings, was a main target of criticism. He returned to his post earlier this month to head the campaign, but he already has announced he will retire next summer.

McNamara acknowledged that the charity lost as much as $1 million in the waning weeks of last year’s campaign, partly as a result of the adverse publicity. In all, $84.6 million was raised, with more than half coming from the region’s 100 largest corporations and their employees.

The strategy this year, he said, will be to widen the pool of potential donors and increase the current per capita gift of $10.03. In terms of per capita giving, the Los Angeles area ranks next to last out of 12 of the nation’s largest United Way regions, and far behind the top figure of $30, collected in Cleveland.

“People are basically generous,” McNamara said. “It’s all a question of how we can bring the story to more of them.”