NATIONAL UNITED WAY OFFICE UNDER FIRE; OFFICIALS HERE HOPE LOCAL EFFORTS DON'T SUFFER

Concern over national management practices of the United Way of America has prompted at least 14 of the organization's affiliates to withhold dues pending the outcome of an investigation.

Locally, officials of the Area Wide United Way said Wednesday they expect the management issue and whether to withhold payment of national dues to be discussed at a March 18 board of directors meeting.

Officials said they hope the controversy over national management practices doesn't hurt local fund-raising efforts.

"The United Way, of course, is a vehicle for gathering these funds and supporting the 25 local agencies that we support," said Ollie Miller, vice president of the Area Wide United Way. "It would be a real shame if it had a negative impact on our fund raising here."

Craig Felzien, past president of the Cape Girardeau and Jackson United Way group and a member of the local board of directors, said he doesn't believe the concerns raised over national management practices will hurt the local affiliate.

"We don't anticipate this will have any effect on our local fund raising," he said.

"We have no control over what happens on the East Coast," he added, alluding to the national office headquartered in Alexandria, Va.

Officials with the national organization have announced plans to hold an "internal teleconference" on the issue with the group's approximately 2,000 affiliates today.

The national organization has hired a Washington law firm to investigate management practices and issue a report by April 2, when the organization's 14-member executive committee will meet.

Published reports have questioned pay and benefits to the national president, William Aramony, who is reportedly paid $463,000 in salary and other compensation, plus generous benefits.

Published reports said Aramony has hired friends and associates for highly paid jobs.

The Washington Post said Aramony had flown the Atlantic by supersonic Concorde and used chauffeur services in New York. Questions have also been raised about the relationship between the United Way and spinoff corporations, one of which has purchased a $430,000 New York condominium, primarily for Aramony's use.

On Feb. 3, United Way's executive committee gave Aramony a unanimous vote of confidence after an internal investigation.

Brian Doyle, a spokesman for John F. Akers, chairman of the United Way's national board, said that Akers had joined in the executive committee's vote of confidence "based on a preliminary investigation that found no impropriety."

Doyle said the board would consider the findings of the follow-up inquiry, but based on the news coverage "we haven't seen any indication of any illegality."

United Way affiliates in San Francisco; the District of Columbia; Las Vegas; Roanoke and Richmond, Va.; Seattle; Portland, Bend and Roseburg in Oregon; St. Cloud, Minn.; and in Philadelphia, York, Altoona, and Harrisburg in Pennsylvania have decided to withhold their dues for now.

"What we are hearing is that many United Ways may delay decision making on whether and how much to pay until they hear the outcome," said Tony DeCristofaro, public relations director for the national organization.

Miller said that withholding of dues by the large, urban affiliates would have a much greater impact than would such action by relatively small affiliates such as the Cape Girardeau area United Way.

The voluntary dues are paid each year on the basis of the amount of money collected by the local affiliate in the fund-raising campaign of the previous year.

Typically, about 1 percent of an affiliate's donations are sent to the national United Way. The national United Way has an annual operating budget of about $29 million.

The Area Wide United Way paid $4,000 in dues in 1991, or 1 percent of the $400,000 raised in 1990, said Dorothy Klein, executive director of the local group.

"We usually pay ours (the dues) in three payments, beginning in April," she explained.

As to the national management questions raised, Klein said, "We are concerned."

Miller said, "It is disturbing because the United Way has had such a great reputation. About 94 percent of what we collect goes into the community." The remaining 6 percent, he added, has gone for expenses.

Miller pointed out that the local organization operates with an executive director and a secretary. "All of the other people are volunteers."

As to the management issues raised, Miller said, "I'm sure that action will be taken at the national level. I wouldn't think that it will be really necessary for the smaller organizations around the country to get up in arms."

He said the national group's executive committee members "have their reputations on the line" as well as that of the group. "So I think they are going to look into this thing very thoroughly to assure that the matter is addressed."

Miller said he isn't concerned about Aramony's high salary. Miller said Aramony has been credited with helping to raise millions of dollars for United Way.

"It's a big business, and you have to, I guess, pay for top talent," said Miller.

"The salary in itself doesn't bother me, but if there have been some insider dealings and transactions, that certainly should be investigated," he added.

Felzien said training sessions, conferences and promotional materials provided through the national organization more than make up for the dues paid by the Area Wide United Way.

(Some information for this story was provided by The Associated Press.)