Despite last year's $2 million embezzlement scandal, the Capital Area United Way has kicked off its 2003 fund-raising campaign successfully, organization leaders said.

The campaign officially began Monday and with early contributors including Fifth Third Bank, the nonprofit organization is already on schedule to meet or exceed the $6.9 million raised last year.

The number of pledges from Fifth Third Bank rose 14 percent this year with a 59-percent increase in total dollars raised, said Jim Paul, the bank's vice president regional manager.

"United Way has always been our charity of choice because we can touch so many agencies and charities," he said.

"We really want to make a statement as part of the pacesetter that despite the challenges, we are still behind the United Way."

The charity faced challenges last year when former Finance Chief Jacquelyn Allen-MacGregor embezzled funds over a nine-year span.

Allen-MacGregor was ordered earlier this year to serve four years in prison and three years of supervised release. She will also pay restitution to the East Lansing-based organization.

The organization's president, Michael Brown who began his term July 1, said agencies in the Human Service sector have double-digit increases and, internally, the United Way staff pledges are up 10 percent from last year.

"All of those are very positive early signs that people are holding our feet to the fire and making sure that the financial accountability is there," he said.

"But they're not judging in a negative way the entire agency by the actions of one person."

Because of Allen-MacGregor's actions, the nonprofit organization has undergone internal restructuring to prevent a similar situation from reoccurring, including a 16-point plan for fundamental change.

Some changes include a donor bill of rights, board reform and new internal control policies. Support staff has also been added to the finance department.

"If you have one person that opens an envelope and there's money in it, who knows what was actually in that envelope," he said.

The United Way supports partner agencies such as The American Red Cross and the Boys & Girls Club by raising funds and soliciting volunteers.

Boys & Girls Club of Lansing President and Executive Director Carmen Turner said the United Way keeps her group in operation, raising about $260,000 yearly for the club's summer and after-school programs.

Turner said she and many other partner agencies understand that last year's financial situation does not reflect the organization.

"Since we had a relationship anyway, I understood that was one person and it was a mistake," she said.

"Lansing is a forgiving community in itself."

In an effort to gain strength in the community and with donors, the United Way has not set a financial goal this year but will focus on the needs of the community, Brown said.

He added that the majority of donations come from private donors.

"If you can grow participation of people, that's what makes the United Way system work," he said.

MSU's charitable campaign raised $664,846 last year for the United Way. Craig Gunn, MSU's charitable campaign co-chairman and a State News columnist, said the campaign will focus on increasing participation rather than exceeding last year's dollars.

Currently, about 4,000 students participate and the group is looking to add at least 400.

"Instead of working toward negative things we are looking toward more positive," Gunn said.