L.A. Head of United Way Steps Down : Charity: The executive resigns a month after a fund drive finished $12 million short of its goal. He will remain with the organization.

The president of United Way’s Greater Los Angeles chapter has resigned, nearly a month after the charitable agency’s major fund-raising drive came up $12 million short of its goal.

Leo P. Cornelius, 57, will step down from his $211,000-a-year job but will remain with the organization pending the selection of a new president, Herb Carter, United Way’s board chairman, said Wednesday.

Cornelius was out of town and could not be reached for comment.

“He said the organization should have someone on board to guide it over the next five to eight years into the 21st Century,” Carter said. “In that sense new leadership or change would be desirable.”

Cornelius has worked for United Way for 33 years, heading organizations in Pennsylvania, Rhode Island and New York before becoming president of the Los Angeles agency four years ago.

The 100-member board of directors was unhappy with the outcome of the recent 18-month fund raiser which brought in $90 million--$12 million short of its goal--but did not blame Cornelius, Carter said. Under Cornelius, the previous year’s drive raised $95 million, the largest amount in the group’s history.

“There was disappointment, but not with Leo Cornelius,” said Carter, executive vice chancellor of the California State University system. “The goal of $102 million was set almost 18 months ago, long before there was a war, a major recession and unemployment in a number of key employee groups that historically give to United Way. We don’t blame anybody for that. Giving is down all over.

“He is a human being wrestling day to day with managing a complex organization.”

He described Cornelius as a “tremendous campaigner with excellent corporate contacts” who has strengthened United Way, which supports more than 300 community service agencies, including 14 chapters of the American Red Cross.

Cornelius became president in 1987, replacing Francis X. McNamara, who came under criticism after it was revealed that the agency had a practice of lending donated money to top executives and engaging in other unusual financial transactions. United Way was cleared of any wrongdoing.

While his replacement is sought, one of Cornelius’ major responsibilities will be to help develop the agency’s next major fund-raising drive, Carter said.