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Tuesday, January 12, 2010

Another United Way Scandal

"After falling months behind on payments to help the needy, the United Way of Tucson and Southern Arizona is promising to fix its finances quickly and repair relationships with the local charities it funds.
 
"The United Way also will conduct an ethics review of how contracts are awarded after paying more than $100,000 in recent years to a [now defunct] firm owned by the wife of the agency's past board chair...
 
"United Way officials said the past-due payments haven't been made because they aren't sure how much unrestricted cash is available to make them — an explanation that is perplexing to experts in charity management. "If nobody in that organization knows how much unrestricted money they have, to me that is quite amazing," said Laura Otten, director of the Nonprofit Center at LaSalle University in Philadelphia. "That's just so basic that any executive director should be able to roll the number off of his or her tongue.""