Donors looking for new ways to give

CHARLOTTE, N.C. -- More than $2 million -- that's what the United Way of the Central Carolinas has agreed to pay into the retirement plan of its chief executive officer.

The payments are spelled out in tax returns known as the IRS form 990, filed annually by non-profit agencies like the United Way and available to the public.

The returns show the local United Way agency has already paid more than $1 million into the employee benefit plan of CEO Gloria Pace King.

Board members tell WCNC they've committed to pay more than $1 million more over the next three years before King plans to retire.

It means United Way donors will literally have made Gloria Pace King a multi-millionaire through their contributions.

Some donors have responded with outrage, vowing to give directly to charities and bypass the United Way campaign.

The United Way allows donors to restrict their contributions, directing some or all of their gifts to a specific charity or group of charities. What donors may not know is that not all of that restricted contribution makes it to the agency.

The United Way of the Central Carolinas keeps 14.6 percent of the donation to cover administrative costs. The United Way donor form does not mention the fee.

When asked if donors were aware that a portion of their donations were withheld by the United Way, board member Ned Curran replied, "I don't know if most of them know it. I think that if you were to ask them do they think it's reasonable that there is a charge associated with the fundraising effort, the collection of that dollar and the conveyance of that dollar to the agency, I think most people would say that seems reasonable to me. There's got to be some cost of doing that."

At issue in a swirl of controversy in the week since WCNC first reported last year's $822,000 payment to the retirement account is whether the payments are reasonable. United Way board members have defended the payments saying they are fair and in keeping with payments to other CEO's in the non-profit sector.

But donors have lit up Web sites and e-mail accounts, blasting the payments as excessive, some of them vowing never to donate through the United Way again.