Charity Appeals for More : Donations: The L.A. chapter of United Way, plagued by scandal involving the national organization, is falling $2 million short of its fund-raising goal.

Leaders of the Los Angeles chapter of the United Way, which distanced itself from the scandal-plagued national organization last month, appealed for increased giving Friday in the face of a projected $2-million shortfall in this year’s fund-raising goal.

With charitable giving hit by the pervasive recession and high regional unemployment, top local United Way officials said the shortfall could prompt cutbacks by agencies that are aiding those hurt most by the sluggish economy.

The plea for stepped-up donations comes at a time when the national chapter is reeling from revelations that former United Way of America President William Aramony used charitable contributions to finance a lavish personal lifestyle that included Concorde jet flights to Europe and limousine services.

As a result of the crisis, the Los Angeles chapter, joining chapters throughout the country, is withholding $350,000 in dues to the national group.

“We need to make clear that we are not that same United Way, we do not condone that kind of behavior and we hold the public trust with response to how we deal with money in high regard,” said Herbert L. Carter, the newly appointed Los Angeles chapter president.

Carter estimated that angry local donors have withheld contributions totaling as much as $500,000 because of the national scandal. Two corporations, which he declined to name, delayed employee-giving campaigns.

In late February, Aramony resigned as president of the national umbrella organization amid allegations that he misused funds at the nation’s largest charity. Results of an outside audit found a “haphazard pattern of expenditures” in which Aramony mixed business and pleasure and charged them both to the organization.

Charges included receipts for at least 29 trips to Las Vegas and a $1,117 limousine charge during a two-day trip to Los Angeles. Aramony also set up spin-off corporations that operated for profit, one of which was headed by his son.

“I think it will hurt us, no question about it,” said Carter, who has spent 90% of his time in the last month in damage-control sessions, answering questions from corporations and other donor groups concerned about the misuse of funds.

The United Way of America, located in Alexandria, Va., is similar to a trade organization. It authorizes about 2,200 local chapters to use its logo and provides services such as publicity materials, stationery and training sessions. Affiliates operate autonomously and pay dues of no more than 1% of their total donations.

The local group collects money through corporate payroll deductions and other donations and distributes it to more than 300 health, education, youth and other service agencies throughout Los Angeles, including 14 local chapters of the American Red Cross. Officials said that 83 cents of every dollar is dispersed to charities.

Following the revelations about Aramony, leaders of the Los Angeles chapter launched an intense public relations drive, especially among firms with fund-raising campaigns under way, faxing campaign leaders information about the upheaval and explaining that the national group does not set local policy.

One flyer states in bold letters, “They’re as Different as Apples and Oranges,” in referring to the national and local groups. “United Way of Greater Los Angeles is NOT a branch office of the United Way of America.”

In addition to withholding dues, the local group is demanding that the national organization agree to seven conditions. Among other things, the group calls for a national code of ethics, an oversight staff, local representation on policy-making panels and full disclosure of subsidiaries and real estate ventures.

“The stigma that has spread around the country against the United Way is unfair to local chapters who have really operated in the right manner,” said Robert E. Wycoff, president and chief operating officer of Arco and the 1991-92 United Way campaign chairman.

Word of the scandal prompted about 2% of the 13,000 donor employees at Southern California Edison to withdraw from a payroll deduction program, said Michael Corn, Edison’s campaign chairman.

The utility company, like several other corporations contacted, distributed informational leaflets to employees about the differences between the national and local chapter.

Alarmed at calculations showing that donations are likely to fall short of the $88-million goal set for this fiscal year, local officials have extended the drive until June, when funding commitments to organizations will be confirmed or possibly reduced.

To date, pledges total $77 million, with money still coming in from several corporate campaigns.

A $2-million shortfall would be particularly harmful because fund-raising goals were dramatically lowered last year in light of the recession and widespread regional layoffs.

In 1990-91, the local chapter raised $90 million, $12 million short of its goal. Soon after the drive came up short, Leo P. Cornelius resigned as chapter president.

The funding drop resulted in a reduction of about 14% in money given to social service agencies throughout the city.

“Two million is a lot, when $14 provides a bed for a night for a homeless person,” Carter said. “We’re very concerned. The difference could mean that a small agency would have to close its doors or another would have to cut back.”

Florence Newsom, executive director of the Angeles Girl Scout Council, which takes in the Los Angeles Basin, said United Way funds were cut 14% this year, to $380,000. The council stopped upkeep on two camps, froze hiring of scout leaders and canceled expansion plans for after-school centers.

Further funding cutbacks would prompt the council to close some Scout centers and reduce hours for sports leagues, Newsom said.

About $125,000 in funding was cut from the budget of the Los Angeles Urban League, forcing layoffs of job training counselors, said John Mack, league president.

“This came at an already difficult time of high unemployment, when the need for job training and demand for services are high,” Mack said.

“What’s important to remember is that if you don’t give money to United Way of Los Angeles because of something that happened in Alexandria, Va. . . . you are hurting people in this community,” Carter said.