October 5, 2000 | Read Time: 4 minutes
By NICOLE LEWIS
The president of United Way of America, Betty Stanley Beene, has announced that she will step down January 31, 2001, about a year earlier than she had planned to depart.
Her announcement came as several large local United Ways withheld dues this summer to show their displeasure with Ms. Beene’s leadership.
In June Ms. Beene, who became president in January 1997, had said she would leave within 18 months. She said she wanted enough time to supervise an orderly leadership transition and a review of the organization’s governance structure and its relationship with the 1,400 local United Ways.
Concerns over United Way’s governance structure — and Ms. Beene’s plans to examine it — prompted the withholding of dues, and appear to be a reason why she will depart earlier than expected.
Tensions have been rising over just how much control United Way of America should have over local United Ways. Ms. Beene had advocated a more-centralized system, in which the United Way of America would take the lead on issues that affect all the local United Ways. Her critics favor the current system, which allows the local charities to make most decisions.
“We believe that being locally autonomous is the best way for us to succeed in the future,” said Joseph G. Calabrese, president of United Way of Greater Rochester in New York and an outspoken critic of Ms. Beene’s leadership. Mr. Calabrese’s United Way has not paid dues since July, but it recently decided to pay after meeting with colleagues from 28 other United Ways.
The meeting, held in New York, was called by the heads of United Ways in St. Louis, Chicago, and Greensboro, N.C., and was designed to help the leaders move past divisive issues, said Neil M. Belenky, president of United Way of Greater Greensboro.
The group affirmed its general support of United Way of America, quelling concerns that more United Ways might join in deferring dues.
Dimon R. McFerson, chairman of United Way of America, said the dues withholding reflected the concerns of just a few United Ways and had not prompted the board to ask Ms. Beene to step aside earlier than planned.
He said he understood what motivated some United Ways to criticize Ms. Beene, however. “Betty Beene was a wonderful change agent, and when you do that you are not always the most popular person after a few years,” he said. “She did exactly what the board charged her to do.”
1992 Scandal
The struggle over structure reflects a long-running argument in the United Way system. When United Way president William Aramony was caught embezzling from the organization in 1992 and forced to resign, some local United Ways said they felt that Mr. Aramony had exercised too much power.
After Mr. Aramony’s departure, United Way moved to give local organizations greater authority. Ms. Beene has moved a step away from that, trying to bind the 1,400 locals closer together under one umbrella group by promoting national corporate sponsorship and working to build a “brand” identity for the organization.
A replacement for Ms. Beene is not expected to be chosen until March.
A 23-member task force to study governance issues was just named, with results expected in May. The task force will investigate how to bring cohesion and uniformity to a national group while maintaining the independence of local United Ways. With only seven members on the committee, local United Ways have suggested that they are not sufficiently represented.
Chris Amundsen, United Way of America’s chief administrative officer, will serve as acting president after Ms. Beene departs. He is not a candidate for the permanent job, said Mr. McFerson.
Mixed Reviews
Ms. Beene’s tenure has received mixed reviews.
While she led the organization during a time of fund-raising gains — campaign growth has outpaced inflation for the past four years — she also supported spending $12-million on a new charitable-pledge software system that proved unusable and had to be abandoned.
But more important to the handful of United Ways delaying dues payments, her long-term goals for the organization have been at odds with theirs.
Local United Ways pay 0.75 percent of their campaign totals to the United Way of America. The dues help underwrite United Way of America’s approximately $20-million annual budget, which covers expenses such as professional-development training, public-service advertising, and national conferences. If enough large local United Ways withheld dues, they would hinder United Way of America’s ability to operate.
The United Way of the National Capital Area is among the organizations that had been withholding dues. It raised $85.5-million in the last campaign — second only to Chicago — and usually pays half its dues, which are $383,222 this year, in July and the other half in December. The group now plans to pay the July portion of the dues after its board meets in October.
Oral Suer, executive vice president of United Way of the National Capital Area, who attended the meeting in New York, said he feels confident all United Ways deferring dues will now ante up.
Says Mr. Suer: “Almost every city there decided now is the time to recommit ourselves” to United Way of America.
