Brunswick Agencies May Feel
Impact of United Way Scandal
BY MARJORIE MEGIVERN
People who can't read or who
lack food and shelter may find their
hopes of rescue reduced, thanks to
William Aramony, former president
of United Way of America.
With the recent release of an in
vestigative report on his mismanage
ment and abuse of funding and pow
er, local United Way organizations
face a possible lack of trust from the
public in future campaigns.
A comprehensive report by two
investigative groups found dial the
deposed leader, who resigned in
February, had spent hundreds of
thousands of dollars on gifts, first
class travel and questionable consul
tant fees. The "loose and informal"
management style stretched over a
20-year period.
Pete Barncttc, director of the
Cape Fear Area United Way mem
ber agency, the Volunteer and In
formation Center (VIC), said last
week, "He goofed seriously and it
will have an impact on local giving,
but it will depend on the local ca
pacity to demonstrate good steward
ship.
"The biggest problem is its tim
ing," he continued. "In this election
year, during the campaign, people
will have a greater tendency to re
member it and relate it to the politi
cal scene."
Barncttc pointed out the extent of
services his agency provides to
Brunswick County. "We served 16
percent of the county population last
year," he said, "and that's over
8,000 people."
VIC supplies the hungry with
emergency food, distributes federal
funds for utility bills and rent, and
helps provide shelter to needy fami
lies for 30 days.
Gladys Wagcnseil, coordinator for
a United Way grantee agency, the
Brunswick County Literacy Council,
is also apprehensive about the effect
of Aramony's mismanagement
"We received 53,900 from United
Way this year," she said, "and I'm
alraid this problem will have a nega
tive effect on future giving. We will
have to tell people how the money
helps buy materials and makes it pos
sible for us to run this organization."
She said there is great difficulty in
getting United Way contributions in
Brunswick County at besL
"There's a strong perception that
all the money goes across the river,"
she said. "It's hard to get across the
fact that Brunswick County people
benefit from United Way."
As Wagcnscil pointed out, there
arc only two member agencies based
in this county, VIC and Hope
Harbor Home, the local shelter for
victims of domestic violence.
Cathy Swaim, shelter director,
was more hopeful than her col
leagues about future funding.
"It's most unfortunate what hap
pened," she said, "but I think people
know and trust us and know we're
doing a good job. We have a good
board of directors."
Most organizations and agencies
must spend three years as grantees
before applying for membership, a
more secure status in United Way.
Grantees must apply every year and
arc not certain of funding.
Other grantee agencies or pro
grams based in Brunswick County
besides the Literacy Council include
Prescription for Excellence, Bruns
wick Adult Day Care and a branch
of Lower Cape Fear Hospice, which
is Wilmington-based.
Michael Griggs, executive direc
tor of the Cape Fear Area United
Way, met Thursday in Greensboro
with Kenneth Dam, interim presi
dent of United Way of America.
Dam spoke with about 50 represen
tatives of local United Ways in
North Carolina and Virginia.
"He assured us that the problems
have been identified and corrected
and that they intend getting back the
$300,000 Aramony owes the United
Way," Griggs said. "He told us that
information has been given to the
Justice Department and the Internal
Revenue Service and criminal pro
ceedings might be initiated by one
of these agencies. The United Way
would cooperate in those efforts."
Griggs added that financial con
trol and new travel policies Dam has
instigated will prevent future abuses.
He has reduced the national budget
by $4 million and anticipates
changes in the structure and compo
sition of its Board of Governors.
The percentage contribution made
by local United Ways to the national
organization may also be changed,
Griggs pointed out. Presently each
one sends one percent of its cam
paign contributions to the national
office.
"There's a possibility the dues
structure will be revised," Griggs
(919)278-5762
. "As a retired Research Chemist and Chemical
Plant Technical Director, I will seek Creative and Effective answers to all
county problems - but, first. I will Listen - That is my Mission. "
AR WASH
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i
i
Vs
said.
The Cape Fear Area United Way
board of directors will meet April 23
and review the options for response
to the national organization. The lo
cal group has withheld its customary
annual dues to United Way of
America.
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