United Way Donations on Rebound

A third of the way into what officials call “the most crucial campaign” in its history, the Los Angeles United Way has raised about 39% of its $85-million goal, and officials say contributions are running well ahead of last year.

With four months left in the campaign, officials are encouraged that the public’s confidence in the charity may be growing after two years of significant campaign losses, generated in part by a loan controversy.

“We are guardedly optimistic,” said Leo P. Cornelius, the president who was hired in July to turn around the agency’s fortunes. “The returns seem very positive.”

Economic Outlook Cited

Many corporate representatives cited United Way’s change of management and a good local economic outlook as major reasons for the apparent turnaround. The stock market crash and jitters over a possible recession have had little impact so far, they said.

With about one-third of 500 company campaigns complete, figures show that employees and their companies are giving about 13% more than they gave last year, when the charity fell $10 million short of its $90-million goal. Contributions so far total $33.4 million.

In 1986, the charity raised $80.2 million--the second-highest amount ever but $4.3 million less than that raised in 1985. As a result, the umbrella organization had to use $3 million from a reserve fund to make sure that the 350 charities under its umbrella received adequate funding. Another group of 13 health partners, including the Los Angeles Red Cross, Crippled Children’s Society and City of Hope Medical Center, had to make do with $1.5 million less than anticipated.

‘Significant Challenge’

Even though this year’s goal has been scaled back significantly from that of last year, it is still a “significant challenge,” said Irwin Field, one of four campaign chairmen, explaining that United Way will have to raise almost $8 million in “new” money. He estimates that there is a campaign base of $77.2 million available from regular corporate and employee contributors. To meet the $85-million goal, officials say they must also retain last year’s support, including corporate gifts, which were up 9%, and private gifts of more than $10,000, which were up 28%.

United Way came under scrutiny in the summer of 1986 after revelation of a series of questionable financial decisions, including lending donated money to agency executives. The Los Angeles County counsel’s office and an independent study committee found that top officials had used poor judgment in authorizing the loans to five agency executives, but concluded that there had been no dishonesty.

Since then, the former executive director retired and a search committee recruited Cornelius from Philadelphia. United Way officials say they have instituted measures suggested by the two groups to ensure proper accountability, including no longer making employee loans.

For this campaign, Cornelius has shifted assignments of 52 paid staff members so they spend more time in actual fund raising. The group is also seeking to double the number of volunteers and plans to increase solicitation of smaller companies and professionals.

Many of the major campaigns have done better this year. For example, Southern California Gas Co. reported that its employees gave $1.5 million this year, an increase of $100,000 over last year.

“It was a very different campaign this year--people wanted to give,” said Leslie Forbes, the company’s contributions administrator. “There wasn’t the same discussions going this year, the adverse thinking and all.”

The Los Angeles County employees campaign, one of the largest, is winding down. Last year, the group raised about $1.68 million, 15% less than the year before. However, Evelyn Gutierrez, chief of special programs, notes that this year’s donation level is running 10% above last year’s.

‘Healthy’ Contributions

“We are seeing a good healthy contribution level, much better than last year. Everyone seems to be encouraged by the United Way’s new management. Mr. Cornelius has been over here several times talking to employees, and there is much more communications going on. Everyone is pleased about the changes,” she said.

Southern California Edison employees contributed $1.2 million, an increase of 11%; contributions from United Parcel Service are up 22% to $309,000; May Co. up 39.1% to $79,000; Jet Propulsion Laboratory up 8.8% to $448,680.

Michael Mendez, manager of human resources for Edison, noted that this year’s United Way contribution was the largest in the company’s history. Companywide, the group gave $2.67 million, or 12% above its goal. “From our perspective, the problems encountered (by United Way) have been resolved,” he said.

Too Soon to Tell

But with many of the charity’s larger campaigns yet to be held, including the hefty Los Angeles City employees campaign and the aerospace accounts, charity workers aren’t predicting triumph yet.

“Campaigns are tricky things,” Field said. “Many things could happen between now and April. We have a lot of work to do.”

Other Southland United Ways also report doing better this year.

Ventura United Way, which fell $500,000 short of a $5-million goal last year, is well on its way to making that goal this year. Susan Cadham, associate executive director, said: “I think everyone is realizing that the financial cuts the agencies had to take last year really hurt. So the community is rallying this year, the economy is good, and people want to give.”

Orange County’s United Way, which expected to raise $17.4 million this year, finished its campaign this week with $16.7 million in charitable gifts. While the goal was not reached, it fared better than last year’s $2.5-million shortfall, which executives blamed partly on fallout from the Los Angeles controversy.