Charities Fear United Way Issue May Cost Needy: Pay Controversy Leads Some Companies to Opt Out of Fund Drive.
Thursday, August 28, 2008 3:57 PM
Symbols: CMS
(Source: The Charlotte Observer (Charlotte, N.C.))trackingBy Mark Price, The Charlotte Observer, N.C.

Aug. 28--Take everything wrong in Charlotte and multiply it. More homeless, more dropouts, more hungry families, more abused women, more desperate people.

That's what charities linked to United Way of Central Carolinas expect, should the Gloria Pace King pay controversy cause a predicted plummet in donations during the agency's annual fund drive.

The campaign's Sept. 5 kickoff couldn't be more poorly timed, falling less than two weeks after the agency's board of directors admitted it was mistaken to have paid King $1.2million in salary and benefits last year.

This week, the board relieved King of her duties, apologized to the community and announced a committee will try to find out what went wrong.

But all this may have come too late to appease angry donors, who view the salary as grand excess.

Some companies have already announced plans not to participate in the campaign, including Shook Kelly, a Charlotte architectural firm. It sent out e-mails to its 32 Charlotte employees Tuesday, telling them the company was opting out for the first time in nearly 15 years. Employees were encouraged to write checks directly to the charity of their choice.

Company co-founder Terry Shook says he called United Way and told them of his decision.

"Given the controversy surrounding the executive director's compensation package, I could not see having my staff supporting that kind of infrastructure," says Shook. "I just don't think charities require infrastructures that are similar to international banks, and require people who head them to be compensated so much."

Bigger operations in Charlotte, such as Charlotte-Mecklenburg Schools, are also preparing for a tough sell during this year's campaign. Superintendent Peter Gorman, a United Way board member, said he'll honor whatever the district's 19,800 employees decide to do.

"I don't think it's unreasonable to think there will be a drop in the dollars raised at CMS," he said.

Even a small drop could be disastrous for charities that depend heavily on United Way. Some get as much as 30 percent of their budget from the agency.

Deronda Metz, director of social services for the Salvation Army of Greater Charlotte, says a 5 percent drop in its United Way money would translate to 250 people being refused admission to the Center of Hope shelter in 2009. The need for beds is already too great, she says, due to the slumping economy. About 320 women currently are being served by the charity, she says.

"We're turning away 15 to 20 people a day now, because we don't have enough room," says Metz.


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