By Adam Emerson Lansing State Journal

EAST LANSING - The Capital Area United Way is trying to recover almost $1 million it says its former finance chief stole over the past two years. A judge froze the assets of Jacquelyn Allen-MacGregor as lawyers search bank accounts and documents for any trace of the $900,000, according to investigators and documents filed in Ingham County Circuit Court.

The Lansing office of the FBI and the U.S. Attorney's Office in Grand Rapids also will investigate, federal agents say.

The group raised about $6.95 million in donations this year, about $100,000 short of its goal. The Capital Area United Way benefits charitable services and programs in Ingham, Eaton and Clinton counties.

It's too soon to tell how the missing money will affect local charities, agency leaders say.

"This represents the ultimate violation of the trust needed to operate our community's largest charity," Bob Berning, president of Capital Area United Way, said Friday.

"I am both deeply saddened and highly outraged that this happened on my watch."

Allen-MacGregor, who lives in Washtenaw County, did not return repeated phone calls seeking comment Friday. She has not been charged with any crime.

United Way leaders allege that Allen-MacGregor stole checks and drew from the charity's account during 2001 and 2002 while she served as vice president of finance.

-- Anonymous, December 29, 2002

Answers

She had worked for the organization since 1982 and resigned from her post Nov. 15, according to the civil lawsuit

the agency filed against her Thursday in Ingham County Circuit Court.

Allen-MacGregor was "granted access to, created and controlled" financial records and documents for the group, according to the lawsuit.

United Way leaders allege in the suit that she stole and forged more than 100 blank checks during the past two years, drawn from the Capital Area United Way's account.

Officials say she deposited the money into her own accounts and intercepted the canceled checks when they returned to the United Way.

The checks - many of which exceeded $9,000 - were written off as uncollected pledges and never entered the charity's accounting system, Berning said.

Because the economy had soured and early-retirement offers led to a drop in paycheck donations in the past couple of years, the group expected fewer pledges would be fulfilled, said Tom Chirgwin, 2003 board chairman of the Capital Area United Way.

"Even in hindsight, it did not raise much concern," Chirgwin said.

-- Anonymous, December 29, 2002

On Dec. 10, United Way leaders found that some financial checks were missing for September 2002. The new finance chief, Cathy Adcock-Davis, checked that month's records and found three missing United Way checks.

Auditors found more missing checks. The bank then provided digital copies of dozens of the checks charity leaders say Allen-MacGregor forged, said David Houston, an attorney for Foster, Swift, Collins & Smith, which is representing the agency.

On Tuesday, the agency contacted the FBI. On Thursday, the Capital Area United Way asked for and got a court order freezing all of Allen-MacGregor's assets. She owns a horse farm, Celebration Quarter Horses, in Wash-

tenaw County.

The order gives investigators time to search for the missing money, Houston said.

"There will be no end to the investigation until all funds are recovered," Houston said.

Berning said new measures are in place to prevent anything like this from happening again. He would not provide details.

"That would be like giving the combination to the safe," said John Fifarek, volunteer general counsel for the Capital Area United Way.

Because it's early in the investigation, United Way officials don't know how this could affect fund-raising efforts for next year.

And some donors aren't sure what they'll do either.

The embezzlement makes it hard to want to donate, said Lansing's Mary Lou Pittman.

"It makes me think twice before I want to give again," she said. "I don't feel very good about it because we trust them. We give our money to them to help people."

-- Anonymous, December 29, 2002

the feds have a program where employees can select the charities they want to contribute to. I had three from last year that I gave to, all of them had something to do with dogs for the disabled because I like golden retrievers and they all used them. This year I couldn't remember which ones they were, and the officials doing the set up for the new year didn't have any info which ones I had chosen and weren't disposed to look it up. so I didn't sign up this time around.

Maybe if I find my receipt from last year... We are getting all sorts of calls for donations lately. They say they will send the info to us, but when they ask for the address I get mad because I figure if they have the unlisted number they should have the address. At which point I tell them to take me off their list.

Oh yeah, the fed program is connected to the United Way but don't ask for details as I never was interested in knowing.

-- Anonymous, December 29, 2002

Last year taught me to stop giving to organizations like the United Way. I decided I needed to funnel my energies more directly.

-- Anonymous, December 29, 2002

I gave Esther a membership to Costco for a Christmas present. Can't deduct it but it was worth many times what it cost to see her face! Besides the obvious convenience, it gives her prominence in her large, extended family, in that she's the only one with a card and thus the others have to ask her for stuff!!! Y'all already know about breakfast for the medics and the goodies I take to the vet. Also took some to the doc's staff this year too. Again, none deductible but generates so much godowill (no pun intended) that it doesn't matter.

I worked for a couple of United Way agencies during the early years of the War on Poverty. Trust me, Brooks is dead right--give the money to your favorite charity yourself, don't use the United Way as a middleman. Er, middlepersonofnonspecificgender. Whatever.

-- Anonymous, December 29, 2002

The Salvation Army got a cash donation from me, and the VOA (Volunteers of America) got some of my furniture. I'm going to be pressured at work to contribute to the United Way. Nope. Not one penny! They are slime in Central Ohio in my opinion.

-- Anonymous, December 29, 2002

Here We Go Again! David A. Young

"Simple rules for saving money: To save half, when you are fired by an eager impulse to contribute to a charity, wait, and count forty. To save three-quarters, count sixty. To save it all, count sixty-five." -- Mark Twain, (Samuel Langhorne Clemens, 1835-1910), Pudd'nhead Wilson's New Calendar

September 7, 2002

It's that time of the year again, when the annual United Way campaigns are under way to raise funds for local programs and services. It is also that time of the year when it seems every organ of the body has a run, walk, ride, or golf tournament fund raising event to represent it.

The Sunday paper, in addition to the news and comics, also has the week's social and charitable events spotlighted so donors can pick and choose which cause they are going to bless with their money.

Especially interesting this year, is that during the month of September, leading up to 9-11, will be more events and related appeals to the generosity of Americans for causes directly, indirectly or not in the slightest way related to the terrorist attacks of September 11th.

Later, when the leaves are falling off the trees and the frost is in the air, we will have our mailboxes attacked by numerous mail appeals for money to meet one emergency or another. Telemarketers will attempt to share in our holiday spirit by appealing to our special sense of seasonal charity to promote their charity's greeting cards, end of the year gifts, and tax benefit ideas.

Before any reader perceives this as a Scrooge and spoiler article about charitable giving, let's look at some facts:

-- Anonymous, December 29, 2002

Most major organ diseases are researched by the National Institutes of Health – supported generously and entirely by the American taxpayer, not by donations to charity.

Contributions to research by most national health charities represent only a very small drop in the bucket compared to what is spent by the NIH and private pharmaceutical corporations. The senior administrative staff of most national charities is paid considerably more than the Secretary of Health and Human Services to whom the NIH is responsible.

Pledge events such as Walks, Rides and Runs are expensive, and often cost far more than publicized, because indirect expenses such as staff salaries and other overhead expenses are not included when a charity calculates and publicly reports the results of these special event fund raisers.

Charities ALWAYS report, with great bluster and fanfare, the total gross dollar donations and pledges RAISED, which is considerably more than the net dollars actually received and available for the purported cause.

Pledge events are public relations extravaganzas for the primary purpose of raising a charity's profile -- raising funds is the secondary goal

Raising a charity's profile in the community is crucial because it allows it to compete with other charities for a donor's interest and money; and to pursue other additional charitable opportunities with them.

-- Anonymous, December 29, 2002

Fundraising expenses are often obfuscated by classifying as much as 50% of the direct expenses as public education expenses instead of as fundraising expenses; which thereby allows the charity to remain within the acceptable 25% cost of fundraising limits mandated by many city, county, and state 'monitoring' agencies.

'Enforcement' of fund raising guidelines by private and governmental agencies is minimal and is easily achieved by shuffling the appropriate forms and paperwork to these agencies for 'review' and eventual burial in a filing cabinet.

After salaries, overhead, administrative and occupancy expenses, the funds remaining for a charity's expressed purposes are limited; and in an attempt to get "the most bang for the buck", charities often report that they provide nebulous and vague services such as Advocacy, Education and the old stand-by Research.

Why then does anyone respond to these appeals for participation? It is because of our Judeo/Christian heritage of helping our fellow man and giving to the less fortunate. The "There, but for the grace of God, go I" attitude is very strong in the American psyche; but if most Americans knew that the real benefit from these nationally sponsored events is to the charity's senior staff, they would rethink their definition of "less fortunate". A large portion of a charity's fund raising proceeds essentially end up funding or paying for staff salaries and benefits.

-- Anonymous, December 29, 2002

And what about finding a cure? The last thing some charities want to happen is to kill the goose that lays the golden egg! In the case of Type II, non-insulin dependant diabetes, it is simply too profitable a disease to cure – it is the goose that lays the golden egg for major pharmaceutical drug companies, supply and equipment manufacturers, physicians, nurses, dietitians; and of course, the charity that purports to represent the 16 million persons known and unknown who have the disease. Never mind that over half the persons predisposed to having diabetes can prevent the disease by practicing good health habits of weight loss, exercise and nutrition.

Remainder

-- Anonymous, December 29, 2002

No argument from me. Wish I could convince the "bullies" at work that the Salvation Army is more deserving, but they must be getting some sort of kick-back from United Way (or something) -- they can be quite bothersome. They don't understand the word "No."

-- Anonymous, December 29, 2002

I think it's because they get a certificate (lower level) or an oak plaque with half a gavel attached and a brass plate with their name and accolades on it, that sort of thing. And I think there's a sort of "secret society," a mutual admiration socety, where they all wash each other's hands. I love mixed metaphors.

-- Anonymous, December 29, 2002