N.C. United Way Accused of Inappropriate Accounting

The United Way of Central Carolinas may be overstating how much money actually goes to outside charities after an investigation uncovered that millions of dollars have been spent on the programs it runs, reports The Charlotte Observer.

The United Way tells donors 85 cents of every dollar goes to charity programs, but the newspaper’s review found that only 75 cents is distributed to charities in the Charlotte metropolitan area.

An accounting expert hired by the newspaper said that the record-keeping system used by the group seems to be designed in part to hide some of the administrative overhead expenses incurred at United Way.

Dan Farrell, an accounting expert who reviewed United Way’s records for the Observer, said of the United Way’s records, “Dubious accounting at best.”

The Charlotte United Way has been rocked in recent months by a controversy over the retirement benefits awarded to its leader, who resigned under pressure, along with the chairman of the organization’s board, according to The Chronicle of Philanthropy.

The new chairman of the board, Carlos Evans, said the organization was reviewing how it counted its spending to be sure it was providing an accurate picture of how much goes to local causes and looking to cut costs on administration so that more money would go to nonprofit groups in the region.

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