Hale House Repairing a Broken Trust

If ever a charity stood as an example of selflessness and devotion, it was Hale House.

President Reagan once called the organization’s founder, Clara “Mother” Hale, an “angel” and a “national heroine.” For decades, she nurtured and provided a home in Harlem for more than 1,800 young children--many of whom had been exposed in the womb to drugs and AIDS.

As word of Mother Hale’s work spread, contributions came in from around the world. Supporters included Yoko Ono, Patrick Ewing, Donald Trump and Rosie O’Donnell. Mayor Rudolph W. Giuliani visited the children, bringing holiday gifts and reading “The Night Before Christmas.”

But the aura of trust and sacrifice that long surrounded Hale House has been shattered by allegations that Lorraine E. Hale, who took over after her mother died in 1992, used nearly $500,000 of the charity’s funds to back a doomed off-Broadway musical produced by her husband, Jesse DeVore. He has since resigned as Hale House’s public relations director.

After the case was first reported in New York’s Daily News, authorities launched an investigation. With the approval of New York Atty. Gen. Eliot L. Spitzer, an interim board of directors in May unanimously dismissed the 70-year-old Lorraine Hale.

Board Accuses Chief of Conflicts of Interest

In a blistering resolution, board members charged that she had jeopardized her mother’s legacy by putting the institution at risk. The board said it had evidence that Hale House had engaged in transactions involving self-dealing and other conflicts of interest.

Several probes, including a potential criminal inquiry by Spitzer, are trying to determine just what occurred under the leadership of Hale’s daughter, who has denied any wrongdoing.

Critics on the board have charged that after Mother Hale died at age 87, her daughter spent lavishly on antiques and furnishings and focused on decorating her own office while leaving the children in spartan surroundings.

Accountants now are trying to determine whether Hale diverted checks destined for the charity into separate bank accounts for her personal use.

The interim board also claimed that under Lorraine Hale’s leadership, the organization had failed to form a “legally constituted” group of directors. The old board, which apparently never held regular meetings, included a member who had been dead for several years.

Now the charity is busy trying to regain the public’s trust and to strengthen the mission Clara Hale began.

Board members believe her original goal of caring for emotionally and physically fragile children of parents who are in prison or addicted to drugs is still relevant.

“Our vision of our mission is broader than what it has been in the past,” said Zachary W. Carter, the former U.S. attorney in Brooklyn who now serves as the interim board’s chairman.

“The question is, how do we support those kids in their lives, under those distressed circumstances,” Carter said. “The problems are incredibly complicated.”

Length of Stays for Children Reconsidered

To expand its mission, Hale House is reconsidering how long the children should remain there. The typical stay is now 18 months. Experts in the field of social work who deal with adoptions and foster care are being consulted.

“We are talking about parents who have an interest in being reunited with their kids,” Carter said. “If a woman is going to be in jail for two or three years, should the child be in Hale House or with relatives or where?”

Given the seductive nature of drug addiction, Hale House staff realizes that relapses will occur and that the charity’s responsibility can’t stop once children leave the facility. One proposal under consideration would set aside a number of apartments in buildings owned by Hale House for families who need support services.

The poignancy of the debate is reinforced by the presence of the children.

There are 13 now at Hale House, ranging in age from 4 months to 4 years. Several of the youngsters and a staff member recently sat at a table with brightly colored placemats decorated with a cheerful picture of a school bus. Some children sipped water and glanced shyly at a visitor who tried to interest them with coin tricks.

Missing was the spontaneity, joy and excitement of youth.

“When I came here [in May], the lack of stimulation was painful,” said Edna Handy, Hale House’s interim executive director. “They [the children] were just kind of sitting and looking.”

Under the new management, Hale House has begun a busy activities program. Field trips to parks, libraries, movies and cultural events are on the calendar, along with arts and crafts and swimming lessons. On Fridays, guest artists--including a magician, a folk guitarist and an African drummer--have visited. The children have responded slowly, often watching staff members to try to learn what is appropriate behavior.

Two new playrooms with toys, books and art supplies have been created. Plans are underway to redecorate the youngsters’ living quarters.

With help from the United Way, a child welfare specialist has come on board to advise Hale House’s staff, which is being strengthened with more full-time workers. The caregivers will have more direct input into decisions affecting their charges.

Contributions Affected by Scandal

For the moment, Hale House remains financially stable, with an endowment of about $11 million and additional assets in real estate. But contributions are down dramatically.

The other day, a neighbor asked Handy how she and Hale House were doing in the wake of the scandal. “I used to send $5 a week, and that really hurt me because I thought it was going to the kids,” the man told her.

He is not alone in his disappointment.

Handy realizes that regaining trust will take hard work and time. “My view is, some forest fires occur in nature in order for the undergrowth to flourish. We do have tremendous resources, not just financial.”