The NonProfit Times William Aramony Is Back On The Streets

By Matthew Sinclair

It sounds like a ghost story told around a camp fire. And, it may go down as a legend, but the same story echoed in United Way offices around the country this fall: Bill Aramony had been spotted walking his dog on North Fairfax Street in Alexandria, Va., blocks away from the United Way of America office.

After 10 years, mentioning William Aramony's name still stirs a pot of United Way angst. Emails buzz, heads-up telephone calls ring in offices and people quickly ask to go off the record.

Aramony, the former United Way boss convicted of stealing from the organization, is free from the Federal Prison Camp at Seymour Johnson Air Force Base, near Goldsboro, N.C., where he finished serving his seven-year term. The sightings spurred conversations about what still lingers like an old scar on the collective body of United Way.

"You're talking about one of the most painful things in my life," said Bob Beggan, who reported directly to Aramony for 19 years and now serves as president and CEO of the United Way International (UWI). "I'm still emotionally wrapped up in the thing." Beggan said he has not spoken to Aramony since his former boss went to jail.

"I had to travel with a document (to detail what had happened) because it comes up in other parts of the world," Beggan said of when he took his current position in 1997, five years after the scandal involving fraud, embezzlement, sexual affairs, and executive hubris hit the presses. "People are clearly aware of it," he continued, "(though) I haven't been called or challenged about it for some time now."

Aramony, fired in March, 1992, was convicted in 1995 on 25 counts including conspiracy to defraud, mail fraud, wire fraud, transportation of fraudulently acquired property, engaging in monetary transactions in unlawful activity, filing false tax returns and aiding in the filing of false tax returns.

Local United Ways disaffiliated themselves with the national office and filed name changes. When she was president and CEO, Betty Beene would refer to the early-to-mid '90s as "The Great Unpleasantness."

Even today, the "frequently asked questions" pages of myriad local UW Web sites that didn't even exist when the story became known a decade ago include comments about Aramony, distancing the local organizations from what happened at the UWA.

While the UWA has moved forward through Elaine Chao and Beene and now welcomes Brian Gallagher to the top job, one thing that continued to rankle some executives in the field was that Aramony had never apologized.

Several long-time and former United Way people have come to speak of what they describe as a contrite, reflective William Aramony, though many also refused to speak for attribution. Contacted through friends, however, Aramony declined to be interviewed at this time or to issue any comment. According to a friend of his, he was scheduled for a significant medical procedure in late January.
Gail Manza, a former UWA official described in court documents as having had a close personal and professional relationship with Aramony, declined to comment beyond saying, "I have lots to say about Bill, as you can imagine. None for the public forum." Manza now serves as executive director of The National Mentoring Partnership in Washington, D.C.

Cheryle Wills, a former member of the UWA board of governors, as well as several local boards including the United Way of New York City, and now on the board of UWI, visited Aramony while he was incarcerated. She has also seen him since his release.

"He looks wonderfully well," she said. "He's energized, thoughtful and still concerned about the well-being of people near and far. … I think, the Bill Aramony I know, his spirit will always remain free."
During his time in prison, where Wills said the guards all addressed him as Mr. Aramony, he helped put together programs that assisted other inmates in learning to read and developing job interview skills. "Young men would come up and want to introduce their families to him," she said. "To say (thank you for) all he'd tried to do for them there."

Though not attempting to make excuses for Aramony's actions, Wills emphasized the positive things he accomplished during his tenure at UWA, including the partnership with the National Football League, the minority roundtable, and helping develop other UW leaders. "He always gave us a sense that what we were doing was not a luxury, it was something that was required."
Second chance?

Continue to talk to those who have served in the United Way system that grew enormously during Aramony's 22-year tenure as UWA president and CEO, however, and the conflict they feel regarding him is still clear. The United States is often regarded not only as a land of opportunity but also of second chances. Still, United Way officials don't expect Aramony to be invited back into the fold.

Beggan said there's still confusion and frustration among his colleagues. One he wouldn't identify had said to him, "We lost money and we knew we would get that back. We lost trust, and that would take time (to rebuild). … What really hurt was the pride … it's taken a lot of time to get that."

"I think there's too much that's passed over the dam," said Virgil Carr, president and CEO of the UW Community Services in Detroit. He said that he still has great respect for Aramony's intelligence and the positive things he accomplished while at UWA. And from what Carr said he has heard from colleagues, Aramony's enthusiasm, wit and intelligence are intact.

Brian Hassett, president and CEO at the United Way/Crusade of Mercy in Chicago, said there was too much pain and damage for Aramony ever to be accepted back into the United Way fold. "The sad thing about him is for a long, long time he really did some good things. He moved the whole system and made it more relevant to America," he said. "Without the trust you have nothing."

He added, "I haven't heard he's been contrite about this. I've never heard an apology. … I think until he does, no matter what he does, there's going to be questions. If he doesn't understand the impact ... not just on the United Way but the Boys and Girls Clubs and the Meals on Wheels … We're a very forgiving country, but you've got to own up," Hassett said.

Mark Desmond, who heads the UW in Nashville, Tenn., dismissed Aramony as a non-issue now. "I think it's an issue to reporters," he said. "Is anything similar to 10 years ago? Hell, 10 years ago George Bush was president."

"I haven't talked with him since long before he was arrested," said Joe Calabrese, who heads the UW of Greater Rochester, N.Y. "He paid his price. … Hopefully, he'll find comfort in his retirement. I don't know what he can offer (the nonprofit sector)."

"For all of the pain he created for the United Way system, clearly there were some things he contributed, and I suspect he could advise people on those subjects," said Irv Katz, president of the National Assembly in Washington, D.C., and a former UW executive director in Indianapolis, as well as a vice president during Beene's administration.

To Gallagher, Aramony and the scandal that surprised the nation and caused upheaval throughout the United Way system is "a non-issue at this point."

Gallagher said that when it comes to anything associated with the former leader, what he thinks is important is not burying the knowledge learned during the 1970s and 1980s that can assist the system as it moves forward today.


 

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