Brian A. Gallagher, who has led United Way Worldwide, the largest privately funded nonprofit in the world since 2009, abruptly announced his resignation on Tuesday amid allegations that the charity handled internal allegations of sexual harassment and discrimination.
Gallagher’s resignation, announced in a farewell note, takes effect on March 1. The group’s board of directors plans to announce an interim CEO before his departure.
In November, after complaints filed by three former employees with the Equal Employment Opportunities Commission and reports published on HuffPost, United Way Worldwide hired a law firm to investigate the claims and how the nonprofit’s leadership handled them. Last week, Proskauer Rose concluded that management’s handling of complaints was appropriate and that the layoffs were “based on legitimate, non-discriminatory and non-retaliatory reasons”.
Gallagher said in his farewell note that the report’s release made him decide to postpone the planned departure.
“We were actively working on a transition for me sometime later in 2021, completing a CEO search process,” Gallagher wrote to his colleagues. “But the board and I think it is better for United Way if I step down as CEO first. It was important for me to stay during that period so that my colleagues and I could be cleared of any wrongdoing. This is done; and now it seems like the right time. “
Lisa Bowman, who was executive vice president and chief marketing officer for United Way Worldwide until she said she was fired by Gallagher in retaliation for reporting sexual harassment by another executive, said the investigation “was not fair, balanced or complete” because investigators they did not speak to any of the women involved.
“I was pleased to hear that United Way decided to do the right thing and make a change in leadership,” Bowman told the Associated Press. “This was a necessary step – but only the first step – in creating a safe and equitable workplace where women are treated with respect and can reach their full potential.”
Bowman’s complaint with the EEOC is still pending.
“I hope United Way will take this opportunity to listen and learn, so that it can continue and improve its important work in supporting communities around the world,” she said.
United Way Worldwide oversees charitable work in 1,800 communities in more than 40 countries.
Gallagher, who started his career at United Way in 1981, worked at five local United Ways before becoming president and CEO of United Way of America in 2002. He took over as director of United Way Worldwide in 2009.
“We are grateful for Brian’s four decades of leadership and service on behalf of the United Way mission,” Dr. Juliette Tuakli, chairman of the United Way Worldwide board of trustees, wrote in a statement. “Brian has always said that a great leader of United Way is one who puts the interests of the community first, his organization next and his own interests last. Brian incorporated this pattern. “
United Way Worldwide officials declined to comment in recent weeks on rumors of local United Ways withholding their debt payments because of allegations of misconduct. But Gallagher acknowledged that his departure comes at a difficult time for United Way Worldwide, which recently instituted some layoffs at its headquarters in Alexandria, Virginia, and temporary salary reductions for senior employees.
“It was a very difficult year,” wrote Gallagher to his colleagues. “The global pandemic, the resulting economic collapse and the strong inequalities in our communities have caused great suffering for many. The response from United Ways worldwide, and United Way Worldwide, has been inspiring. We went back to our roots helping the most needy by all necessary means, and we did it together; a lesson that we must take forward. “
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