August 27, 2008
Give to the United Way ... support overpaid executives
When I worked at a newspaper in the late '80s, once a year I found myself being targeted -- along with the other hapless employees -- for the annual United Way Combined Campaign, where employers across the nation try to extort charity from their workers in an effort to make management look good.
We were forced to watch a lavishly-produced video from the United Way, extolling all the good that would be done with our payroll deductions, funneled through the good offices of the United Way, of course.
On the way out of the lunchroom after the video, we were handed the forms to enroll in the bi-weekly shakedown donation -- which I always tore up on the spot and tossed in the garbage can, much to the consternation of the United Way rep, as well as my boss.
You see, the mantra was, "100 percent participation!" Corporate got some sort of bragging rights if they got their employees to tithe through the United Way.
Now, I had no problem with donating to charitable organizations; the Salvation Army and Disabled American Vets have been my favorites since I entered the workforce.
But I never liked the idea of using a clearinghouse to get to the charities, never understood the need for the United Way -- with its overhead and administrative costs -- taking a chunk out of each dollar I donated, reducing the amount of money that the worthy cause on the far end of the donation chain ultimately received.
And that didn't even take into account the waste, fraud and abuse going on in the upper echelon of the United Way.
The scandal of the day back in the late '80s and early '90s revolved around the United Way paying for several houses for the organization's head, including a Manhattan love nest for his mistress, not to mention his enormous salary and other assorted perks. Then there was the office supply business run by the son of the United Way's chief; would you believe that the United Way bought all its supplies from the boss' kid?
What are the odds?
As you can guess, donations went into the toilet when the story broke, the United Way fired its head, severed ties with the son's company, and I snickered -- and sent a check directly to my favored charities.
Turns out nothing's really changed in the intervening years; overpaid executives and unsavory fiscal shenanigans seem to be part of the corporate culture over there.
For months, the United Way of Central Carolinas board said Gloria Pace King was worth every penny of her controversial $1.2 million pay package.
Tuesday, 37 of those board members unanimously called on their longtime CEO to resign or be fired.
A member of the regional United Way board said they were hiring a new CEO to quickly step in and help restore public confidence. Not to worry, 'though, even that gig pays the equivalent of a cool quarter-million per year.
Mac Everett, a retired Wachovia Corp. executive, will step in as interim president to lead the organization through its campaign drive.
He declined to discuss the King situation, commenting instead on the difficulty of raising money in a down economy. Last year, the United Way drive raised an unprecedented $43.5 million.
Everett will be paid $20,000 a month for up to four months. Denton said the board plans to seek private donations to pay him and King. If the money isn't raised, he said, the board will trim expenses in the agency's budget to avoid cutting aid to nonprofits.
The dispute with King centers on a decision by the board's executive committee to add $822,000 to her retirement benefits in 2007. That was more than seven times the $108,000 paid the year before. The board has said the increase was to make up for short payments in previous years.
But Denton called the decision a mistake. He said six past and future board presidents studied the issue the past two months. They concluded that, while such retirement plans aren't unusual for top United Way executives, Charlotte residents found it excessive.
An Observer analysis of tax records shows that King's combined salary and benefits are the highest among 31 United Way organizations nationwide. Her salary ranks fourth; her bonus is the biggest among a sampling of 14 agencies of similar or larger size. Even at $108,000, her retirement benefits were the highest found among the 31 groups.
The board will pay the 21/3 years remaining on the three-year employment contract King signed in January. It pays her $290,000 annually, but allows that amount to be cut if she gets another job. Denton said he has talked with business leaders about finding King a new post. If nothing pans out, he added, the board will pay off her contract in full – even if it winds up having to pay a permanent replacement simultaneously.
The United Way will not pay what's left on King's retirement plan: $450,000 to $500,000 a year through 2010. Denton and Russ Sizemore, the board's attorney, said King's retirement contract lets the board cancel benefits if her employment ends.
Seriously, people, the next time you find a United Way Combined Campaign form in your In-Box, recycle it immediately. You'll save trees -- and money, too. And the charity of your choice will end up actually getting more of your donation to put to good use.
Posted by Mike Lief at August 27, 2008 07:17 AM
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Comments
My company allows us to specify a particular charity of our choice on our pledge cards. They make a big deal about this option. But why would I want to funnel my money thru UW so they can skim off their 10%? Oh, that's right, so my company can take credit for my donation. Silly me!
Posted by: Kent at August 27, 2008 11:19 AM