United Way’s Donations Fall $1.5 Million Short of Goal

In what was considered to be the most important campaign in its history, Los Angeles United Way has fallen $1.5 million short of its $85-million goal, officials announced Tuesday.

The $83.5 million in donations is the second highest ever raised by the charity, and is the second highest amount raised this year by any local United Way nationally.

The total is also $3.3 million above last year’s dismal fund drive. That campaign fell almost $10 million short of a $90-million goal after revelations in 1986 of several controversial financial decisions, including loans of donated money to United Way executives.

Improved Image

In spite of the shortfall, which is in line with past campaigns that have traditionally fallen from $1 million to $3 million short, officials believe that several management and accounting changes and public relations efforts have begun to erase the black eye caused by the questionable loans.

“We did extraordinarily well, under the circumstances,” said United Way Board Chairman Irwin Field, who is president of Liberty Vegetable Oil Co. “We are a new United Way with a new direction now.”

Officials were hoping for a better showing this year to aid the 365 United Way agencies that have endured severe budget restraints the last three years.

Depending on final figures, which will not be available until early June, the charity may have to use about $1 million from a special reserve fund to provide agencies with the same level of funding as in the previous two years--$40 million. Another group of 15 health partners, including the Los Angeles Red Cross, American Lung Assn., Crippled Children’s Society and City of Hope Medical Center, will receive about $20 million.

Employee and corporate donations make up 75% of United Way contributions, and the bright spot in this year’s campaign was that employee donations were up 8% over last year. It was individual employee givers who last year defected from United Way.

Gifts from corporations this year showed a more modest 4% increase. Charity officials and the companies said that the economic climate, including company mergers and downsizing, have contributed to the fairly flat corporate donations.

Leslie Forbes, contributions administrator at Southern California Gas Co., where donations totaled $1.5 million, an increase of $100,000, said, “It was a very different campaign than last year. You can’t make people give if they don’t want to. Last year they didn’t want to. Campaigns among city, county and federal workers showed increases of 8.6%, 6% and 10% respectively, for a total of $6.6 million.

“It appears that our employees have recognized the change in leadership and new philosophy of a more open United Way,” said Evelyn Gutierrez, chief of special programs for Los Angeles County.

The 1986 controversy involved lending donated money to agency executives. Investigations by the Los Angeles County counsel’s office and a citizens committee found that the officials used poor judgment, but that there had been no dishonesty.

Since then, the charity says, it has instituted measures suggested after the two inquiries to ensure better accountability. Francis X. McNamara, United Way president for 20 years, retired. Leo Cornelius, a 28-year veteran of charity work, took the reins.

Said Cornelius of the 1987 campaign: “I’m absolutely more than satisfied with how the community has responded. I just wanted to get the airplane off the ground. This coming year we will redesign it.”

Nationally, the 2,300 local United Ways raised $2.6 billion this year, a 6.4% increase. The top city was Chicago, which raised $87 million, followed by Los Angeles.

In the west, Seattle raised $33.4 million, and San Francisco $47 million, increases of about 7%. San Diego United Way realized its $24-million goal, a $1-million increase over last year. Orange County United Way raised $16.7 million, about $700,000 short of its goal, but $1 million more than last year. Ventura County United Way raised $5 million, or about half-a-million dollars ahead of last year.

At the annual meeting Tuesday night at the Beverly Hilton Hotel, it was announced that George F. Moody, president and chief operating officer of Security Pacific Corp., will be volunteer chairman of next year’s campaign.

UNITED WAY FUND RAISING

In millions

Amount Year Goal Raised 1967 $21.8 $21.6 1968 26.8 23.0 1969 28.2 25.0 1970 30.4 26.4 1971 35.4 25.6 1972 30.0 25.9 1973 30.0 26.0 1974 27.8 26.7 1975 28.5 27.1 1976 29.1 26.5 1977 33.0 31.9 1978 39.8 40.3 1979 46.0 43.5 1980 52.0 50.4 1981 56.2 54.7 1982 60.0 58.4 1983 64.5 63.9 1984 70.0 70.0 1985 77.0 76.4 1986 86.0 84.7 1987 90.0 80.2 1988 85.0 83.5

Source: United Way