Saturday, August 30, 1997
Feud break out between agency, United Way
By RICHARD HORN / Abilene Reporter-News
United Way is withdrawing its $20,100 funding from Mend-a-Child,
leaders of the non-profit child health agency said Friday.
But United Way officials said that's not true, that Mend-a-Child
is encouraged to apply for $20,000 set aside for children's health
services next year. But they added they would like to see more
money going to services, less to agency administration.
The feud erupted in public Friday afternoon, five days before
United Way kicks off its fall campaign.
"This is a terrible blow but it is not debilitating,"
Mend-a-Child chairman Steve Hare said in a statement released
to the media.
"United Way dollars have made up about 17 percent of our
annual budget," he said. "Now we will simply have to
turn to the hundreds of supporters who gave to Mend-a-Child the
10 years before we became a United Way agency to make up the difference.
We believe many others will want to help, as well."
A fund-raising letter, signed by former city councilwoman Betty
Ray, was mailed Friday, Hare said.
But Dixie Bassett, United Way executive director, said that
as late as Wednesday she believed discussions were on track regarding
how Mend-a-Child funding would be continued.
"We are astounded," she said of the agency's decision
to take the matter public.
The final allocations will not be made until November, she
said, when citizens review teams have additional recommendations
from all the agencies.
"The United Way of Abilene remains open to discussion
on ways that funds can be distributed for direct medical/dental
services for qualifying families," Bassett said.
"If they want to work through the process and work with
us," she added, "there is no one else who has applied
for that funding and we don't even have a process for that at
this point."
Should Mend-a-Child choose not to participate, she said, then
in 1998 United Way will seek another way to meet children's special
health care needs.
United Way board chairman Paul Cannon told reporters he believes
an agreement can still be reached with Mend-a-Child.
Hare said he was surprised by United Way's comments Friday.
"That's interesting, because they told us face-to-face
that the review committee had recommended to withdraw funding,"
he said.
Of the $20,000 set-aside for children's services, Hare said:
"Our question is, who's going to administer it, who's going
to deliver the services? We are the agency that's been doing that
for years. It doesn't make a lot of sense."
Hare released a July 2 letter from United Way, stating that
its fund distribution committee has recommended against continued
Mend-a-Child funding.
The letter cites duplication of services in the wake of expanded
Medicare coverage, a new state-funded program for children's health
care, the existence of two direct health care providers for needy
families and the "significant cost" of providing Mend-a-Child
services.
Bassett agreed United Way leaders have privately expressed
concerns that with an annual total budget of $118,000, only 30
percent of Mend-a-Child's "raw dollars" goes to purchase
services. The remaining 70 percent, she said, is used for salaries,
benefits, office space, etc.
But Mend-a-Child officials disputed both the contention services
are duplicated and the agency's administration costs are too high.
They provided letters from the Presbyterian Medical Care Mission
and Hendrick Medical Center's family clinic, assuring that Mend-a-Child
reaches a different population and provides important services
to the community.
Mend-a-Child receives referrals weekly from both those clinics
and makes referrals to them, as well, Hare said.
During the last year, Mend-a-Child provided 791 services to
453 children needing physicians or dentists' appointments, prescriptions,
medical equipment or help with hospital costs, said Executive
Director Pat Frosch.
In addition, she said, 142 families were referred to other
agencies or providers. Several of the services, such as assistance
for office visits to a child's regular doctor and to specialists,
are provided by no other local provider, she said.
She added the number of children helped by the agency has increased
42 percent since January, while the number of services provided
is up 49 percent.
Accountant Robert Early, president-elect of Mend-a-Child's
board, said the agency's audit shows that for the past five years
administrative costs have been "within the acceptable range
for non-profits and not materially different from other United
Way agencies."
"Some individuals have suggested outrageous figures regarding
our administrative costs," Early said.
Such comments, he said, ignore accepted accounting practices
regarding the allocation of costs in a non-profit setting and
impugn the integrity of the agency's audit.
He also said the agency reduced its rent and utility costs
in 1995 when it moved to its present location, which it shares
with another non-profit agency.
Hare acknowledged allocations aren't final until November,
but he said he does not expect United Way of Abilene to change
its mind.
"With the campaign scheduled to begin next week, we feel
we owe it to our donors and the broad base of support Mend-a-Child
enjoys in the community to let them know what's happened,"
he said.
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Abilene Reporter-News / Texnews / E.W. Scripps Publications
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