United Way Effort at 62% of New Goal: $85 Million

Halfway through what officials are calling the most important campaign in its history, the Los Angeles United Way has raised about 62% of its $85-million goal--with contributions averaging 14% above last year’s disappointing effort.

With three months left in the fund drive and about half of the 500 major company campaigns complete, officials believe that the $52.6 million raised so far reflects an upturn in public confidence.

The last campaign fell about $10 million short of United Way’s goal after the revelation in the summer of 1986 of a series of questionable financial decisions, including lending donated money to agency executives.

Measures Instituted

The Los Angeles County counsel’s office and a citizens’ committee found that the officials had used poor judgment, but that there had been no dishonesty. Since then, the charity says, it has instituted measures suggested by the two groups to ensure accountability.

“Public opinion has turned, but we cannot rest on our laurels,” George F. Moody, volunteer campaign co-chairman and president of Security Pacific Corp., told a meeting of high-level campaign volunteers Thursday, cautioning them that the level of increase must be maintained to make the annual goal.

Moody said that while $85 million is a realistic goal for this year, it does not reflect the needs of the umbrella organization’s 350 charities.

“We can’t hold them down forever,” he said, referring to the budgets of the charities, social service organizations and health agencies, which serve one in three Los Angeles residents.

Unlike last year, the bright spot in this campaign has been employee donations, which are up 13%. But while corporate gifts have shown a 5% average increase over last year, officials had been hoping for an 8% increase.

Reserve Fund Used

Last year, the charity raised $80.2 million--the second-highest amount ever, but $4.3 million less than what was raised in 1985. As a result, United Way had to use $3 million from a reserve fund to make sure the agencies were not severely harmed. However, another group of 13 “health partners,” including the Los Angles Red Cross, had to make do with $1.5 million less than anticipated.

This campaign year, the charity started with a campaign base of $77.2 million from regular contributors. So far, officials have raised about $4 million in money from new sources and must raise another $4 million from that, plus maintain regular donations, to make their goal, according to Leo Cornelius, United Way’s new president.

“We are halfway home,” Cornelius said. “But we’re concerned that there is a 50-50 odds that we could fall short if all these things don’t come together.”

The apparent upsurge in donations, officials said, is due to confidence in United Way’s new management team, and a good economic climate. Corporate gifts are off from the projection, officials said, possibly because the companies had provided extra donations, including a number of major 11th-hour matching grants, to keep last year’s campaign afloat.

United Way hopes not to have to depend on these major corporations so heavily in the future, and is trying to broaden the donor base, especially among the smaller companies and professional groups, Cornelius said.