ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 26, 1992                   TAG: 9202260025
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A2   EDITION: METRO 
SOURCE: Associated Press
DATELINE:                                 LENGTH: Medium


2 MORE UNITED WAY GROUPS WITHHOLD DUES

San Francisco's and Las Vegas' United Way organizations said Tuesday they will join others - including Roanoke's - in withholding dues from the United Way of America until an examination is completed of alleged irregularities in hiring and management practices.

"The allegations are shocking," said Tom Ruppaner, president of the United Way of the Bay Area in San Francisco.

Ruppaner said his group would delay sending nearly $500,000 in voluntary dues.

"We don't want people to reduce support for our United Way because of these alleged practices of senior management in Washington," he said.

Other groups that have delayed payments include organizations in the District of Columbia; San Francisco; Seattle; and Portland, Ore. United Way of Reno, Nev., and several others in Virginia have said they are considering it.

The Bay Area group was the largest to announce it is withholding dues, which typically amount to about 1 percent of local donations to the charitable groups.

"The No. 1 attribute [of a charitable organization] is being trustworthy, and this creates a cloud nationally," said Garth Winckler, head of the Las Vegas group - which contributes about $70,000 a year to the $29 million annual budget of United Way of America.

"This really will come home to hurt local communities severely," Winckler said. "So we're encouraging them to put all the cards face up on the table and deal with the issue, air it out totally."

"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 United Way of America in Alexandria.

The national organization has directed the Washington law firm of Verner, Liipfert, Bernhard, McPherson & Hand to report by April 2 on a follow-up inquiry it is conducting. The organization's 14-member executive committee is scheduled to meet then.

The committee gave United Way of America President William Aramony a unanimous vote of confidence Feb. 3 after an internal investigation.

News reports have questioned pay and benefits given to Aramony, who reportedly is paid $463,000 in salary and other compensation.

The Washington Post said Aramony had flown in the supersonic Concorde across the Atlantic and had used chauffeur services in New York.

The Post, The New York Times and Regardie's Magazine of Washington also raised questions about the relationship between United Way of America and spinoff corporations, one of which has purchased a $430,000 New York condominium primarily for Aramony's use.

They also said he has rewarded friends and associates with highly paid jobs.

Joanetta Bolden, a spokeswoman for the national group, said Monday that Aramony has flown the Concorde "once or twice" and has used chauffeurs to get around New York but "people do that all the time."

The Post, the Times, Regardie's and The Chronicles of Philanthropy have carried articles raising questions about United Way of America management.

John F. Akers, chairman of the board of United Way of America who also is board chairman of IBM, was not available for comment. His spokesman at IBM, Brian Doyle, said that Akers 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."



by Bhavesh Jinadra by CNB