Monday, March 24, 2014

Big-time Charity Fraud in Canada, too

By Gary Snyder

The Portland Hotel Society’s top managers stepped down under pressure from government officials over the spending reports. 

Auditors said that the Portland Hotel Society’s spending of nearly $26-million in annual taxpayer funds to run housing and addiction services—including Canada’s only supervised-injection site for drug users—was subject to lax oversight, allowing the charity’s leaders to charge lavish travel, dining, and other costs to the organization at a time when it faced financial problems. 

Managers and directors expensed more than $69,000 over three years on restaurants, and more than $300,000 on travel to Vienna, Paris, Istanbul, New York City, Los Angeles, Banff and Ottawa, among other locations. Hotel rooms of up to $880 per night were charged for trips to the United Kingdom and Austria, including flowers, alcohol and spa services.
There were also more than $8,658 in limo fees in 2013, a trip to Disneyland in Anaheim, a $5,832 cruise for a PHS manager, a $917 baby shower and a $7,025 “celebration of life” for a deceased employee.

The PHS is in a “weak financial condition” and could have trouble paying its obligations if they came due. The society would have run a $2.07-million deficit in the last fiscal year if not for a one-time cash infusion. (Source)


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: Charity Navigator, Vermont Public Radio, Miami Herald, National Public Radio (NPR), Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), “Betrayal”, (a movie), NBC (on Charity Fraud…TBD), FOX2, ABC Spotlight on the News, WWJ Radio, Marie Claire, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, Charity Navigator, The Chronicle of Philanthropy, St. Petersburg Times, Board Room Insider, USA Today Topics, Accountants News, Newsweek.com, Responsive Philanthropy Magazine, New York Times, Portfolio Magazine, The Virgin Islands Daily News, NANKAI (China) BUSINESS REVIEW, National Religious Broadcasters newsletter, The Charity Governance Blog, American Chronicle, Palm Beach Post, Detroit Free Press, Oakland Press, Nonprofit World, Socially Responsible Business Forum, PNNOnline, Ohio Nonprofit Resources, Nonprofit Good Practice Guide, Nonprofit Startup Guide, Nonprofit Blog, National Coalition of Homeless Newsletter, Finance and Administration Roundtable Newsletter, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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