O.C. United Way to Withhold Dues to Parent

The United Way of Orange County will withhold payment of yearly dues to its parent organization until allegations of mismanagement at the national headquarters are investigated, officials said Tuesday.

Spokesman Jeff Rocke said the Orange County agency will delay paying more than $190,000 in membership dues to United Way of America until “we are satisfied there have been no improprieties.”

The action will be presented to an executive committee this week for approval, but Rocke said that is a formality.

The national organization serves as a trade association and does not dictate policy or financial decisions of local United Way agencies, Rocke said.

Still, there is concern that charges of financial misconduct leveled against United Way of America President William Aramony could taint the local agency, reduce volunteer support and hinder fund-raising efforts.

“We are concerned that any perception of misconduct on the national level will affect the view of the local agency,” Rocke said. “With that in mind we are encouraging the United Way of America to take whatever steps necessary . . . to resolve problems that exist and remove any doubt.”

At least five other United Way chapters--in San Francisco, Seattle, Portland, Roanoke, Va., and metropolitan Washington--have also indicated they will withhold dues to the national group.

Dues amount to about 1% of collected donations. The local fund-raising campaign this year recorded pledges totaling about $21 million.

The national group’s budget--about $29 million last year--is financed mainly from dues paid by local agencies.

Rocke said the national office has mounted an internal investigation and also hired an outside team of lawyers to review charges of misconduct.

The review will reportedly examine ties among the United Way of America and several spin-off corporations that purportedly have acted in Aramony’s behalf.

The Washington Post and other publications have reported allegations that Aramony improperly spent donations, put friends and associates on the payroll and lived lavishly on a $463,000 salary.