by Gary Snyder
Nonprofit Imperative has covered the scandal about Greg Mortenson's Central Asia Institute with guidance from Nonprofit Quarterly. NPQ updates its readers that an article from American Institute of Philanthropy's magazine identifies continuing holes in Mortenson's and CAI's stories and explanations. Not only did Central Asia Institute report receiving little to none of the $25,000 fees he charged to speak at many of these events, its tax form showed that it was covering many of the expenses related to carrying out Mortenson's U.S. speaking tours.
In 2009 the charity's tax form also showed it spent $4.6 million on what it described as "domestic outreach and education" to fund these speaking events at which Mortenson promoted his books. This amount included expenses paid for things like domestic travel and advertising. The board confirmed that in 2009 CAI spent only 41% of its expenses on building or supporting schools in Pakistan and Afghanistan, but insisted that Mortenson's speaking engagements at which he promotes his books should also be counted as a program of the charity since their purpose is to educate Americans about the needs of people in central Asia. In addition, CAI confirmed that the charity "has purchased thousands of copies" of Mortenson's books over the years to give to schools, libraries, and others. Mortenson's royalty checks from book sales "are not split" with CAI, according to the board, but they claim he has donated "a percentage of his royalties from the books to CAI." The board admitted that the charity paid $1.7 million in book-related costs in 2009 that included "Advertising, events, film and professional fees, publications (books & freight), and some travel."
On learning of the fiction of Mortenson's supposedly non-fiction books and his use of Central Asia Institute to fund and promote his personal profit-making endeavors, "AIP believes it is appropriate for Mortenson to resign from the charity. A new board of directors should then be installed that, unlike its current board, has the ability to govern CAI effectively and independently of the personal business interests of Mortenson or any other CAI official. For a man who has dedicated so much of his life to promoting CAI's important cause, Mortenson's resignation letter to the charity is perhaps the most generous contribution he could now make to the people of central Asia."
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Wednesday, July 27, 2011
Monday, July 25, 2011
This is Sickening: NASA IG Pleads Guilty to Church Fraud
By Gary Snyder
A former special agent who worked for the National Aeronautics and Space Administration’s Inspector General office has pleaded guilty to filing a false tax return that failed to list the $300,000 in cash he stole from his church’s collections while serving as a deacon.
Alvin Danielle Allen had served as a deacon at Lancaster Baptist Church in Lancaster, Calif., since around 1998 and was also a member of the church’s board. From 2004 through 2009, he served on a church committee that counted the tithes after the church services. While serving in that role, he regularly stole from the congregants’ cash contributions, he admitted in his plea agreement.
The amount of money he stole varied over the years until approximately October 2009, when he was caught on a hidden surveillance camera stealing the church tithings and hiding the cash in his clothes. He stole approximately $299,975 from the church between 2004 and 2008. He was previously convicted in state court of grand theft by embezzlement and commercial burglary for stealing from the church.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
A former special agent who worked for the National Aeronautics and Space Administration’s Inspector General office has pleaded guilty to filing a false tax return that failed to list the $300,000 in cash he stole from his church’s collections while serving as a deacon.
Alvin Danielle Allen had served as a deacon at Lancaster Baptist Church in Lancaster, Calif., since around 1998 and was also a member of the church’s board. From 2004 through 2009, he served on a church committee that counted the tithes after the church services. While serving in that role, he regularly stole from the congregants’ cash contributions, he admitted in his plea agreement.
The amount of money he stole varied over the years until approximately October 2009, when he was caught on a hidden surveillance camera stealing the church tithings and hiding the cash in his clothes. He stole approximately $299,975 from the church between 2004 and 2008. He was previously convicted in state court of grand theft by embezzlement and commercial burglary for stealing from the church.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Friday, July 22, 2011
Over 300,000 Less Charities...all at once
By Gary Snyder
Paul Light in the Washington Post sheds some light (no pun intended) on the shrinkage of the charitable sector.
June produced an initial tally from the Internal Revenue Service’s purge of nonprofits that failed to file the three consecutive years of tax forms needed to maintain their tax-exempt status. All totaled, 275,000 of the nation's roughly 1.6 million charities lost their papers; and of those, 150,000 or so were traditional public charities that help the needy. The purge will continue into the future with as many as 10,000 nonprofits expected to lose their status each month this summer and fall.
No one knows just yet which nonprofits went down. But emerging analysis from both the Urban Institute's National Center for Charitable Statistics and Guidestar has already confirmed that most were small organizations that shut their doors, or never quite existed in the first place. Not all of the now-dead organizations were small, however. According to Guidestar, the top 100 organizations that went under had revenue from $4 million to $400 million – which means these nonprofits must have been lazy, sloppy or just plain ignorant.
The Urban Institute and Guidestar also already know that 25 percent of the revocations involved nonprofits created in the 1990s, and another 25 percent in the 2000s. The rest have been around from time immemorial, many just in a file drawer in someone's basement. Why any of these deceased organizations ever asked for tax-exempt status in the first place is anyone's guess, but the purge leaves the sector lighter and possibly weaker. Moreover, the purge has so far only covered nonprofits that failed to send in their relatively simple tax forms from 2007 to 2009, not yet the ones that may have dropped out as the recession bit even deeper in 2009 and 2010. Expect as many as 50,000 more revocations to come before the end of the calendar year.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Paul Light in the Washington Post sheds some light (no pun intended) on the shrinkage of the charitable sector.
June produced an initial tally from the Internal Revenue Service’s purge of nonprofits that failed to file the three consecutive years of tax forms needed to maintain their tax-exempt status. All totaled, 275,000 of the nation's roughly 1.6 million charities lost their papers; and of those, 150,000 or so were traditional public charities that help the needy. The purge will continue into the future with as many as 10,000 nonprofits expected to lose their status each month this summer and fall.
No one knows just yet which nonprofits went down. But emerging analysis from both the Urban Institute's National Center for Charitable Statistics and Guidestar has already confirmed that most were small organizations that shut their doors, or never quite existed in the first place. Not all of the now-dead organizations were small, however. According to Guidestar, the top 100 organizations that went under had revenue from $4 million to $400 million – which means these nonprofits must have been lazy, sloppy or just plain ignorant.
The Urban Institute and Guidestar also already know that 25 percent of the revocations involved nonprofits created in the 1990s, and another 25 percent in the 2000s. The rest have been around from time immemorial, many just in a file drawer in someone's basement. Why any of these deceased organizations ever asked for tax-exempt status in the first place is anyone's guess, but the purge leaves the sector lighter and possibly weaker. Moreover, the purge has so far only covered nonprofits that failed to send in their relatively simple tax forms from 2007 to 2009, not yet the ones that may have dropped out as the recession bit even deeper in 2009 and 2010. Expect as many as 50,000 more revocations to come before the end of the calendar year.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Thursday, July 21, 2011
This Breast Cancer Fraud Has It All
By Gary Snyder
The Coalition Against Breast Cancer, Inc. seems to have all of the makings of a typical charity fraud that is so evident on these pages. This exempt organization is a sham charity that has diverted nearly all of the millions of dollars raised in the name of breast cancer to its officers, directors and fundraisers. Let’s look at a few of the issues as reported by several news sources as well as the lawsuit filed by Eric T. Schneiderman, Attorney General of the State of New York.
Background
The Coalition Against Breast Cancer falsely claims research affiliations with hospitals such as Memorial Sloan-Kettering and using other lies and exaggerations to gain donor’s confidence. Defendants deceived donors into believing that their contributions will help eradicate breast cancer through research, mammogram screening and other programs. In reality, CABC spent none of its funds on eradicating breast cancer, nor does CABC have any research affiliation whatsoever with Memorial Sloan-Kettering or any other hospital. IT does not conduct or fund any research on breast cancer or any other cancer. CABC does not perform any mamograms or other breast cancer screening nor is it affiliated with any mammography screening facilities and, as its own records show, CABC spends virtually nothing on breast cancer prevention. Andrew Smith and Garrett Morgan, longtime friends and business associates, launched the CABC fundraising operation in 1995 to exploit the breast cancer movement for their personal financial benefit, at a time when both were in need of cash. Smith was emerging from personal bankruptcy and Morgan was being investigated for his role in a fraudulent meals-on-wheels charity, which was later ordered permanently shut down.
Board Oversight
Smith appointed his family and friends and they all did handsomely. His former wife, Lori Smith, and then later, his girlfriend, Debra Koppelman, and her friend Patricia Scott were in leadership positions. None of them had any experience in the breast cancer cause or non-profit management, much less the capacity to fulfill their fiduciary responsibilities as director. Smith and his friends have all benefited financially from the CABC operation. Smith has paid himself generous compensation, despite being fully-employed elsewhere. Morgan became the outside fundraiser, and later arranged to be paid 80-85% of every dollar raised and an additional percent of every dollar raised from other professional fundraisers he recruited. that Defendants have diverted for their personal benefit, as well as its insurance broker for medical and insurance policies that CABC took out for the for the benefit of Smith and Koppelman. Smith has at all times controlled the composition of CABC's three-person board ensuring that there would be no independent oversight of the CABC operation. Smith, Koppelman and Scott have breached their fiduciary duties and are complicit in the scheme to defraud the public because they have permitted CABC's fraudulent fundraising to persist and have failed to exercise any appropriate oversight over Campaign Center or other professional fundraisers raising only in its name.
Fraudulent Fundraising
Prior to starting CABC, Smith had no experience running a charitable organization or involvement with the breast cancer cause. However, breast cancer was emerging as a national charitable cause and of particular concern on Long Island and Smith knew that his friend Morgan had a professional fundraising business that profited off of charitable causes. For years CABC has lied to and grossly misled the public about how donations will be used. Defendants falsely claim that CABC has research affiliations with such hospitals as Memorial Sloan-Kettering in New York and John T. Mather Memorial Hospital on Long Island, when it has never had any research affiliations with these institutions.. Defendants falsely claim that CABC is helping "women survive" through "research" relating to breast cancer and by providing a mammography van, when in fact it does not conduct any cancer research of any kind and it has no mammography van. CABC falsely claimed that it provides "constant" seminars and forums for women, when in fact it does not do so. CABC grossly exaggerated and mislead donors about the existence of a "mammography fund," claiming that donations into this fund will "help sponsor a mammography for women that have lost their insurance" and "help provide free mammographies for women that have no insurance." In fact, CABC has spent virtually none of its funds on mammographies. In the last three years alone, despite raising over $4 million, CABC funded mammographies for only 11 women. In 2008, a year in which the organization raised over $1.4 million from the public, a mere $374 went to underwriting mammographies.
Self-Dealing
The actions of Smith, Koppelman and Scott have not been in good faith or in the
best interests of CABC. State law prohibits loans to officers and directors of a nonprofit corporation. In 2008, CABC to made two loans to Smith, in the amounts of $100,000 and $5,000. These loans were completely unsecured, with no security, collateral or guarantee. Koppelman and Scott acquiesced in these unsecured loans to Smith. Koppelman wrote and signed the loan checks on CABC's corporate checking account. The loans were improper because the purpose of the loans was unrelated to CABC's purposes as set out in its certificate of incorporation. The purpose of the $105,000 in loans, as Smith has now admitted, was to provide him with funds to make an investment with Agape World, a Ponzi scheme, and Smith lost his entire investment. In 2008, Koppelman wrote a check to herself for $50,000 for a loan. Smith not only acquiesced in the loan to Koppelman, but suggested it. The loan was intended to help Koppelman purchase from Smith the 2 Patton Road residence, where the CABC operation is based. (The transaction ultimately did not take place.) Thus, both Smith and Koppelman had a financial interest in and stood to benefit from the loan. Michael Buonanno became the outside financial advisor for CABC's investment and retirement accounts funded from charitable contributions. Buonanno has a checkered past with having fraudulently raised funds for a sham meals-on-wheels charity based in Long Island. The meals-on-wheels fundraising operation was ordered shut-down. In January 2009, Smith acquired 2,500 shares of stock in Empire National Bank (ticker symbol "EMPK"), a start-up local bank that in October 2010 was found to have unsafe and unsound banking practices. Morgan was also an investor. Smith paid $25,000, or $10 per share for the securities. In 2009, after the value of the stock had declined, Smith decided to sell his holdings of Empire National Bank stock.
Other Operational Issues
CABC has never held elections for its officers or directors during the approximate
14-year period from the time of inception, until the commencement of the Attorney General's investigation. None of CABC's directors or officers had any training or experience in nonprofit management when Smith appointed them. In CABC's filings with the Attorney General's office, Scott is identified as President, Smith is identified as Treasurer, and Koppelman as VP and/or Director of Programs. These titles are meaningless. Scott has had no rights or responsibilities as a "President" or chief executive. Despite her lofty title, Scott has served only in a nominal support role with no decision-making authority or leadership responsibilities. Scott was not even aware until early 201O approximately three years after the practice began-that she was identified as "President" on CABC's filings. 53. Additionally, although Smith is identified as "Treasurer," in fact it is Koppelman who controls the checkbook and writes checks for CABC, including for fundraiser commissions and other expenses. Smith, Koppelman and Scott have used CABC as a personal piggy bank to subsidize their lifestyles, collectively paying themselves hundreds of thousands of dollars in salaries, retirement benefits, and medical and dental benefits. Year after year, the salary and benefits collectively paid to the three directors vastly exceeded the amount spent on charitable activities.
Whew!!
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
The Coalition Against Breast Cancer, Inc. seems to have all of the makings of a typical charity fraud that is so evident on these pages. This exempt organization is a sham charity that has diverted nearly all of the millions of dollars raised in the name of breast cancer to its officers, directors and fundraisers. Let’s look at a few of the issues as reported by several news sources as well as the lawsuit filed by Eric T. Schneiderman, Attorney General of the State of New York.
Background
The Coalition Against Breast Cancer falsely claims research affiliations with hospitals such as Memorial Sloan-Kettering and using other lies and exaggerations to gain donor’s confidence. Defendants deceived donors into believing that their contributions will help eradicate breast cancer through research, mammogram screening and other programs. In reality, CABC spent none of its funds on eradicating breast cancer, nor does CABC have any research affiliation whatsoever with Memorial Sloan-Kettering or any other hospital. IT does not conduct or fund any research on breast cancer or any other cancer. CABC does not perform any mamograms or other breast cancer screening nor is it affiliated with any mammography screening facilities and, as its own records show, CABC spends virtually nothing on breast cancer prevention. Andrew Smith and Garrett Morgan, longtime friends and business associates, launched the CABC fundraising operation in 1995 to exploit the breast cancer movement for their personal financial benefit, at a time when both were in need of cash. Smith was emerging from personal bankruptcy and Morgan was being investigated for his role in a fraudulent meals-on-wheels charity, which was later ordered permanently shut down.
Board Oversight
Smith appointed his family and friends and they all did handsomely. His former wife, Lori Smith, and then later, his girlfriend, Debra Koppelman, and her friend Patricia Scott were in leadership positions. None of them had any experience in the breast cancer cause or non-profit management, much less the capacity to fulfill their fiduciary responsibilities as director. Smith and his friends have all benefited financially from the CABC operation. Smith has paid himself generous compensation, despite being fully-employed elsewhere. Morgan became the outside fundraiser, and later arranged to be paid 80-85% of every dollar raised and an additional percent of every dollar raised from other professional fundraisers he recruited. that Defendants have diverted for their personal benefit, as well as its insurance broker for medical and insurance policies that CABC took out for the for the benefit of Smith and Koppelman. Smith has at all times controlled the composition of CABC's three-person board ensuring that there would be no independent oversight of the CABC operation. Smith, Koppelman and Scott have breached their fiduciary duties and are complicit in the scheme to defraud the public because they have permitted CABC's fraudulent fundraising to persist and have failed to exercise any appropriate oversight over Campaign Center or other professional fundraisers raising only in its name.
Fraudulent Fundraising
Prior to starting CABC, Smith had no experience running a charitable organization or involvement with the breast cancer cause. However, breast cancer was emerging as a national charitable cause and of particular concern on Long Island and Smith knew that his friend Morgan had a professional fundraising business that profited off of charitable causes. For years CABC has lied to and grossly misled the public about how donations will be used. Defendants falsely claim that CABC has research affiliations with such hospitals as Memorial Sloan-Kettering in New York and John T. Mather Memorial Hospital on Long Island, when it has never had any research affiliations with these institutions.. Defendants falsely claim that CABC is helping "women survive" through "research" relating to breast cancer and by providing a mammography van, when in fact it does not conduct any cancer research of any kind and it has no mammography van. CABC falsely claimed that it provides "constant" seminars and forums for women, when in fact it does not do so. CABC grossly exaggerated and mislead donors about the existence of a "mammography fund," claiming that donations into this fund will "help sponsor a mammography for women that have lost their insurance" and "help provide free mammographies for women that have no insurance." In fact, CABC has spent virtually none of its funds on mammographies. In the last three years alone, despite raising over $4 million, CABC funded mammographies for only 11 women. In 2008, a year in which the organization raised over $1.4 million from the public, a mere $374 went to underwriting mammographies.
Self-Dealing
The actions of Smith, Koppelman and Scott have not been in good faith or in the
best interests of CABC. State law prohibits loans to officers and directors of a nonprofit corporation. In 2008, CABC to made two loans to Smith, in the amounts of $100,000 and $5,000. These loans were completely unsecured, with no security, collateral or guarantee. Koppelman and Scott acquiesced in these unsecured loans to Smith. Koppelman wrote and signed the loan checks on CABC's corporate checking account. The loans were improper because the purpose of the loans was unrelated to CABC's purposes as set out in its certificate of incorporation. The purpose of the $105,000 in loans, as Smith has now admitted, was to provide him with funds to make an investment with Agape World, a Ponzi scheme, and Smith lost his entire investment. In 2008, Koppelman wrote a check to herself for $50,000 for a loan. Smith not only acquiesced in the loan to Koppelman, but suggested it. The loan was intended to help Koppelman purchase from Smith the 2 Patton Road residence, where the CABC operation is based. (The transaction ultimately did not take place.) Thus, both Smith and Koppelman had a financial interest in and stood to benefit from the loan. Michael Buonanno became the outside financial advisor for CABC's investment and retirement accounts funded from charitable contributions. Buonanno has a checkered past with having fraudulently raised funds for a sham meals-on-wheels charity based in Long Island. The meals-on-wheels fundraising operation was ordered shut-down. In January 2009, Smith acquired 2,500 shares of stock in Empire National Bank (ticker symbol "EMPK"), a start-up local bank that in October 2010 was found to have unsafe and unsound banking practices. Morgan was also an investor. Smith paid $25,000, or $10 per share for the securities. In 2009, after the value of the stock had declined, Smith decided to sell his holdings of Empire National Bank stock.
Other Operational Issues
CABC has never held elections for its officers or directors during the approximate
14-year period from the time of inception, until the commencement of the Attorney General's investigation. None of CABC's directors or officers had any training or experience in nonprofit management when Smith appointed them. In CABC's filings with the Attorney General's office, Scott is identified as President, Smith is identified as Treasurer, and Koppelman as VP and/or Director of Programs. These titles are meaningless. Scott has had no rights or responsibilities as a "President" or chief executive. Despite her lofty title, Scott has served only in a nominal support role with no decision-making authority or leadership responsibilities. Scott was not even aware until early 201O approximately three years after the practice began-that she was identified as "President" on CABC's filings. 53. Additionally, although Smith is identified as "Treasurer," in fact it is Koppelman who controls the checkbook and writes checks for CABC, including for fundraiser commissions and other expenses. Smith, Koppelman and Scott have used CABC as a personal piggy bank to subsidize their lifestyles, collectively paying themselves hundreds of thousands of dollars in salaries, retirement benefits, and medical and dental benefits. Year after year, the salary and benefits collectively paid to the three directors vastly exceeded the amount spent on charitable activities.
Whew!!
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Wednesday, July 20, 2011
Eye-popping Raise for Charity Leader
By Gary Snyder
The state of Pennsylvania is investigating the Hershey Trust’s finances and now Leroy S. Zimmerman may get another set of eyes looking over his shoulder. Mr. Zimmerman has gone from a $35,000 board member of the charity for disadvantaged youth to $500,000 - for the second consecutive year. His total compensation on Hershey-related boards is $1.9 million. Zimmerman's overall influence in Hershey matters expanded with his board directorships and his compensation. He is chairman of the board of the Hershey Trust Co. and the only person seated on all four Hershey boards, one of which, the one overseeing the Hershey School, is unpaid
Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
The state of Pennsylvania is investigating the Hershey Trust’s finances and now Leroy S. Zimmerman may get another set of eyes looking over his shoulder. Mr. Zimmerman has gone from a $35,000 board member of the charity for disadvantaged youth to $500,000 - for the second consecutive year. His total compensation on Hershey-related boards is $1.9 million. Zimmerman's overall influence in Hershey matters expanded with his board directorships and his compensation. He is chairman of the board of the Hershey Trust Co. and the only person seated on all four Hershey boards, one of which, the one overseeing the Hershey School, is unpaid
Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Wednesday, July 13, 2011
The Shameful IRS
by Gary Snyder
The fan who caught Derek Jeter's 3,000th hit is under the watchful eye of the IRS. Christian Lopez has been lavished a slew of prizes and the IRS wants a piece of the action. (link) This is the same IRS that has failed to become, even marginally, involved with the ongoing muli-billion crime spree in the charitable sector. Unless the malfeasance is in the headlines of a newspaper, the IRS takes a pass. It is a shame.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
The fan who caught Derek Jeter's 3,000th hit is under the watchful eye of the IRS. Christian Lopez has been lavished a slew of prizes and the IRS wants a piece of the action. (link) This is the same IRS that has failed to become, even marginally, involved with the ongoing muli-billion crime spree in the charitable sector. Unless the malfeasance is in the headlines of a newspaper, the IRS takes a pass. It is a shame.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Sunday, July 10, 2011
Stars Are Not Immune to Charity Fraud
by Gary Snyder
Over the years, the 9/11 charity "Stars, Stripes and Skates" claims through its tax filings to have raise $746,236 in revenue. Over that eight year period, an analysis of ticket prices and venue sizes shows that as much as $2.1 million might have rolled in through ticket sales alone. The amount of money generated remains murky. The charity drew the likes of Nancy Kerrigan, Sasha Cohen, Sarah Hughes, Viktor Petrenko, Nicole Bobek, Philippe Candeloro and Todd Eldridge.
The organizer even milked the parents of 800 young performers for thousands of dollars each in the name of the tragedy. "Stars, Stripes and Skates" made a big deal about it -- that it was going to the victims," said Laura Nelson, whose daughter skated at the inaugural event in 2002 at Madison Square Garden.
Founder Tara Modlin confessed she blew all the cash on producing the events -- and spent not one penny on the cause. The IRS yanked its tax-exempt status last month after it failed to file annual reports for three consecutive years. She also shelled out another $50,000 on unnamed consultants one of which was her best friend. The group's mission seemed to change as frequently as a sequined skater's costume.
Lee Ielpi, who lost his firefighter son Jonathan on 9/11, name was used on tax documents as president even though Ielpi explicitly told Modlin that he did not want to be involved with the charity.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
Over the years, the 9/11 charity "Stars, Stripes and Skates" claims through its tax filings to have raise $746,236 in revenue. Over that eight year period, an analysis of ticket prices and venue sizes shows that as much as $2.1 million might have rolled in through ticket sales alone. The amount of money generated remains murky. The charity drew the likes of Nancy Kerrigan, Sasha Cohen, Sarah Hughes, Viktor Petrenko, Nicole Bobek, Philippe Candeloro and Todd Eldridge.
The organizer even milked the parents of 800 young performers for thousands of dollars each in the name of the tragedy. "Stars, Stripes and Skates" made a big deal about it -- that it was going to the victims," said Laura Nelson, whose daughter skated at the inaugural event in 2002 at Madison Square Garden.
Founder Tara Modlin confessed she blew all the cash on producing the events -- and spent not one penny on the cause. The IRS yanked its tax-exempt status last month after it failed to file annual reports for three consecutive years. She also shelled out another $50,000 on unnamed consultants one of which was her best friend. The group's mission seemed to change as frequently as a sequined skater's costume.
Lee Ielpi, who lost his firefighter son Jonathan on 9/11, name was used on tax documents as president even though Ielpi explicitly told Modlin that he did not want to be involved with the charity.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
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