Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, February 24, 1992 TAG: 9202240136
SECTION: VIRGINIA PAGE: A1 EDITION: METRO
SOURCE: MONICA DAVEY STAFF WRITER
DATELINE: LENGTH: Long
UNITED WAY WILL DELAY DUES ROANOKE GROUP WITHHOLDING FUNDS FROM NATIONAL
The United Way of Roanoke Valley will delay paying dues to the United Way of America in light of allegations about the spending habits of the head of the national organization.The Roanoke group, which usually sends in its dues on a quarterly basis, decided last week to put off payment until the end of this year, according to Robert Kulinski, president and chief professional officer of the United Way of Roanoke Valley.
"We'll wait until all of these allegations are resolved," said James Arend, chairman of the local group's board.
A Washington Post story, reprinted Sunday in the Horizon section of the Roanoke Times & World-News, reported that United Way of America President William Aramony is paid $463,000 in salary and other compensation, gets extravagant perks and rewards his friends with jobs at the charity.
Kulinski and other leaders at Roanoke's United Way said their decision to delay paying dues reflected their concerns about the allegations. Perhaps more important than those concerns, though, was a fear that people will perceive the tie between the local group and Aramony's national group to be stronger than it really is, the leaders said.
"We're trying to be sure everybody understands the real nature of the relationship," Kulinski said. "We are an independent, locally autonomous United Way," he said.
"They in no way dictate our goals or procedures," board member Patrick Shaffner said. "I think it's extremely important that people know that the United Way in this community and valley is here to help the people in need in this community and valley."
The relationship of the 1,400 local United Ways with the Alexandria-based national organization is similar to that of a trade association, Kulinski said.
Like about 70 percent of the local United Ways, the Roanoke group pays about 1 percent of the money it gets from contributions to the national organization, Kulinski said.
Known as "fair-share" funding, 1 percent is the national group's "suggested" dues rate, Kulinski said. That's about $44,000 for Roanoke's United Way, which raised about $4.6 million in its 1991 campaign.
In exchange, the national United Way provides the Roanoke organization training classes, discounted materials and the benefit of national advertising.
The direct financial benefits for the Roanoke group from its participation in the national amount to less than $10,000, according to figures supplied by Kulinski. Indirect benefits - including national advertising spots - are calculated at nearly $1.5 million.
And some of the returns are harder to count.
"Probably the greatest benefit is to be able to network with all the other United Ways," Kulinski said. "United Way of America is the only forum we have - the only link - among all 1,400 dues-paying United Ways of any size."
Leaders at Roanoke's United Way reacted cautiously to the allegations about Aramony.
"I don't know," said Arend, who added that he has never met Aramony. "He is reported to be a very dynamic individual who has done a good job for the United Way over the years."
"The salary is high, but if he were the president of a major corporation, I suspect it probably would not be out of line."
Kulinski said other board members were "not happy" with revelations about Aramony's salary and some of his other "business decisions."
"I had no idea his salary was that high," Kulinski said.
"It bothers me at this time in a fund-raising climate which is extremely tough," he said. "People are out of work and those who are working are getting little or no increase.
"To have a perception that United Way's chief honcho is somehow compensated beyond reasonable levels is extremely distressing."
Board member Richard Popp Arend said he did not have enough information to judge Aramony and his financial habits.
He said he was confident that an independent group - hired by the national's executive committee to investigate the claims - will reach a just conclusion.
A report is expected by April 2.
Regardless, Arend said, similar allegations could not be made about finances at Roanoke's United Way.
"They're certainly not overpaid and they're an extremely dedicated and hard-working staff," Arend said.
In 1991, Kulinski - the Roanoke group's top-paid staff member - earned $69,000, Arend said.
Kulinski said he considered himself to be "fairly compensated" given his 16 years of experience and an average workweek of 55 hours.
"Any Saturday or Sunday that I'm in town, I'm here," Kulinski said. "You can call me here and find that out."
The United Way of Roanoke Valley employs 11 people and spent some $370,000 on salaries, benefits and payroll taxes in 1991.
So-called "overhead" costs for 1992 will amount to 11.8 percent of the $4.6 million the organization collected in 1991, according to budget figures supplied by Kulinski. That amounts to expenses of about $550,000.
Kulinski said most United Ways operate with an overhead averaging about 13 percent.
"That's among the most efficient of any charitable organization in the country," he said. "And we do a little better than that."
Told of claims that Aramony flew the Concorde across the Atlantic and used chauffeur services, Kulinski reported that his employees drive to most conferences and training sessions that fall within six hours of Roanoke. The Roanoke group has one company vehicle - a white Chevrolet van.
Roanoke's United Way has no policy on nepotism, but that could change, Kulinski said.
"It's never been an issue here," he said. "But I suspect we may look at our personnel policies in light of a number of things that have shaken up in this."
According to the Post story, Aramony's son heads up one of several corporations that spun off the United Way of America.
Kulinski said he's not alone in worrying about possible effects the allegations against Aramony may have on local United Ways. His peers, staff members at other locals, are concerned as well.
"Nobody likes it," Kulinski said.
"We've worked and I don't want that besmirched by something that happens on . . . the Potomac. That to me is an aggravation."