REGIONAL STATUS FOR UNITED WAY? CHANGE IN OPERATIONS, FUND-RAISING PROPOSED FOR GIANT UMBRELLA CHARITY.

Byline: David M. Drucker and Cecilia Chan Staff Writers

The United Way of America is proposing a dramatic reorganization of more than 1,400 local affiliates into a centralized operation that would channel donations and decisions through regional centers.

An internal United Way Task Force report proposes strengthening the power of the largest affiliates, including the Greater Los Angeles chapter, under a weighted voting system that reflects the size of communities served. The Greater Los Angeles organization, which serves millions of people, currently has the same one vote as the smallest affiliates.

The report also recommends allocating an additional $20 million annually for an expanded management that would be paid for, in part, by increasing the membership dues of local affiliates.

Joe Haggerty, president of the Los Angeles United Way, said he understands that smaller affiliates might fear the changes, but he added there are no plans to change the fundamental structure of the charity.

``I see it more as a refinement of the United Way,'' Haggerty said. ``Just collecting and distributing (money) makes you a kind of middleman. That's not enough in today's society.''

Officials at United Way headquarters in Alexandria, Va., said there are no plans to diminish the autonomy of smaller affiliates.

``Decisions will still be made at the local level, and decisions will still be made based on what is needed at the local level,'' spokesman Philip Jones said. ``Those types of things will not change.''

David M. Smith, president and CEO of the United Way of Ventura County, said the report, which will be reviewed next month during the United Way's national convention in Indianapolis, has some merit, especially in allowing local United Way organizations to develop programs that have a greater impact on their community.

However, the Ventura County chapter, which has a $1.6 million annual operating budget and expects to raise $5 million this year for 51 organizations, also has some reservations about the proposal.

``There are factors in the report that still have to be answered in terms of the financial ramifications that could impact a local United Way such as ours,'' Smith said.

``What is being proposed in the national report may result in increased costs that would have to be absorbed by local United Ways, and that is something we have to take a look at.''

Under current procedures, affiliates collect 80 percent of their funds directly and function as a fund-raising conduit for local charities. If the donor does not specify which agency is to receive a donation, the local United Way donates it to groups in its area.

According to Tommy Williams, a task force member and United Way of Southwest Louisiana volunteer, one recommendation would centralize the collection of donations. Funds would be collected regionally and distributed to each chapter.

``What we've taken is a regional concept. If you want to say we've expanded it, maybe we have,'' Williams said. ``We should have a similar message if we're in close geography.''

Under the proposed changes, members such as the United Way of Greater Los Angeles could get 15 votes, while smaller members would still have only one.

Should that occur, the larger affiliates - though fewer in number - would have the votes to approve a new, centralized United Way.

``I understand how that could make (smaller affiliates) nervous, but I don't think it's such a big deal,'' Haggerty said. ``We're not going to try and force anything on anybody ... We want feedback.''