An Open Letter To The Uniformed Firefighters Association Membership

Donations to the Widows’ and Children’s Fund were not and are not managed as donors expected, and the assets of the Fund are placed at unnecessary risk. The Uniformed Firefighters Association (UFA) uses the Fund primarily to ingratiate union officials with the membership, secondarily to maintain an investment and finally to provide assistance to the widows and children of firefighters who died in the line of duty.
Three hundred and forty-three firefighters were murdered at the World Trade Center on September 11, 2001. The UFA capitalized on the tragedy and collected $81 million in donations for the Widows’ and Children’s Fund. Donors thought that their money would go directly to the widows, children and families of those who died on 9-11. The UFA had other ideas. They planned to invest the money and dole out small stipends to widows and children only, over time; families of single firefighters were not included. Further, the expectation of donors that their generosity would be dispensed expeditiously was ignored.
That prompted the New York State attorney general to intervene to force the UFA to distribute the money as donors intended. He was partially successful. When the smoke settled, the UFA got to keep about $23 million, which was eventually invested in risky equity and bond markets.
For a while the investments did well, and each December the UFA held an annual Christmas party for dependent children, paid for by the Fund. The UFA also published Fire Lines each January following the party, with photos of union officials surrounded by smiling children. It’s great public relations; union officials look like heroes to the membership.
Its great public relations until something goes wrong—then it’s not. In the fiscal year ending July 31, 2009, the Fund’s investments declined 5%. To attenuate the impact of that loss on the investment portfolio, the UFA reduced payments to dependents by 42%. A relatively small investment loss resulted in a large reduction in Fund services, which leads one to believe that investment returns takes precedence over dependent services as a goal of the Fund. You be the judge, but in my opinion, the UFA needs serious supervision by the membership in the management of the Widows’ and Children’s Fund.

Joseph J. Hehir
FDNY Retired

For further information, questions or input, jjhehir@excite.com