Cystic Fibrosis Charity to Shift Operations to Private Company

The board of trustees of the Cystic Fibrosis Foundation voted overwhelmingly Saturday to approve a major plan that will transfer the management of its multimillion-dollar health care service, direct-mail activity and mail-order pharmaceutical operation to a private company.

The foundation’s president, Robert K. Dresing, will resign to run the independent company that will manage the charity’s operations on “an audited, no-profit basis.”

Frank Deford, a sports writer and Cystic Fibrosis Foundation board chairman, said the new arrangement would make the nonprofit organization’s operations more efficient.

Some trustees and philanthropic experts, however, questioned the plan and raised concerns that Dresing could be getting a “sweetheart” deal that helps establish him in private business. They also argued that the foundation did not consider whether other companies could do a better job.

“If you are happy with the people you have, then I don’t think you should go through the motions of going outside,” Deford said. “Do you really think we could get anybody to do this for free or at cost? He’s not making any money out of this.”

Deford said Dresing has agreed to charge the foundation for just the cost of running the operations. Dresing plans to make a profit from other health-related ventures. The board also contends that the plan will allow the charity to focus on finding a cure for cystic fibrosis, a congenital disease characterized by malfunctioning of the pancreas and respiratory infections.

The restructuring proposal will be finalized under supervision of the Cystic Fibrosis Foundation executive committee and is subject to outside approval, the trustees said in a press release. The board’s vote was 22 in favor and three against.

If the restructuring is approved, Dresing will serve the foundation as a consultant, Deford said.