Wednesday, March 28, 2012

Audit Catches World’s Largest Workplace Charity


by Gary Snyder

More than $1 million in expenses related to the Combined Federal Campaigns of the National Capital Area,  a federal charity drive, have been questioned by the Office of Personnel Management’s inspector general; in addition, OPM identified $764,069 in expenses that could have been put to better use for the campaigns.  The CFC is “the world’s largest and most successful workplace charity fundraiser. Global Impact, the non-profit that manages the charity, has agreed to take corrective steps. Global Impact President Renee Acosta said the firm has agreed to pay back $308,820. Global Impact further agreed to implement additional internal controls. Why does it take a disaster to awaken charities to trustworthy practices and procedures? (link)















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)

An Unbelievable Scenario At A Nonprofit




By Gary Snyder

We usually have problems with them but we seldom think that they are legally amiss. Well… this homeowners association conspiracy is totally filled with intrigue and points to the need to make sure that there are internal controls in place.

Federal prosecutors accuse the co-conspirators of stacking homeowners association boards with members who pushed for construction defect lawsuits against builders. The boards then steered legal and construction repair work to the co-conspirators. Prosecutors intend to name close to 20 new defendants soon in one charging document in federal court. Several that are agreeing to plead guilty include a lawyer, former homeowners association board members, straw buyers and community management employees. One that pleaded guilty is David Amesbury.

Las Vegas attorney Amesbury admitted that between March and September 2008, he was paid a $3,000 kickback by his co-conspirators to help rig board elections at two sites. The scheme involved finding "straw purchasers" to buy condominiums and getting them to run for seats on the boards, prosecutors have alleged. The straw buyers were elected through classic dirty campaign tactics that included forging ballots and digging up dirt on candidates not supported by the co-conspirators. Another attorney and Amesbury's estranged wife, former Chief Deputy District Attorney Victoria Villegas, has also attracted the interest of Justice Department lawyers in the homeowners association investigation. She was fired from the district attorney's office earlier this month.

Amesbury also admitted that he participated in a separate scheme to defraud banks while seeking refinancing for his Cafe, which he operated under a Clark County contract with former construction company boss and another partner, a former Las Vegas police officer. Last November, several weeks after he had pleaded guilty in the homeowners investigation, Amesbury was discovered badly beaten in a gated Henderson (NV) community. He had two broken ribs, and both his kneecaps were shattered. He also had a variety of facial injuries. At one point, the reports said, Amesbury told a nurse he "was beaten up, and he deserved it." This March, David Amesbury was found dead by apparent hanging. There was no evidence of foul play or any suspicious circumstances.

Another major player in the scheme, attorney Nancy Quon, whom prosecutors were looking to indict, was found dead in the bathtub of her condominium on March 20 five days prior to Amesbury’ alleged suicide. Authorities do not suspect foul play.

Two other people who attracted the interest of authorities in the sweeping federal investigation also have died under unusual circumstances. Former Las Vegas police officer shot himself to death a few days after a September 2008 FBI raid in the investigation. A former homeowners association board member died in 2010 of a drug overdose.
Some of the witnesses are concerned about their personal safety. (Las Vegas Review-Journal)











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, March 21, 2012

Dubious Charities: Boy Scouts and Explorers


by Gary Snyder

Inappropriate behavior in the junior police program, Explorers, is not that rare. It mirrors the behavior of its parent organization, Boy Scouts of America. Both organizations’ conduct adds up to a shameful expose of poor self-regulation.
An Associated Press examination of news accounts since the Explorers was spun off from the Boy Scouts found at least 97 cases involving police officers accused of sexual assault on minor girls, and sometimes boys, in the program. Even though the numbers seem strikingly high, the numbers only reflect a fraction of all incidents because most never become public because a youth is unlikely to report it….and even if fellow officers are aware of it, they are reluctant to do anything about it.
The Explorer program is run by Learning for Life, a subsidiary of Boy Scouts of America. The organization pairs young people 14 to 21 with police mentors who take them on ride-alongs, teach them to write reports and direct traffic in the hope that they will be inspired to pursue law enforcement careers. It has nearly 2,000 law-enforcement Explorer posts and upward of 32,000 participating in the Boy Scouts–affiliated program each year.
Here are a few recently disgusting examples:
In one case, a deputy San Bernardino (CA) Sheriff’s deputy was charged with having sexual intercourse with a sixteen year old. Explorer. In another, a Victorville (CA) deputy plead guilty to two counts of oral copulation with a 17-year old Explorer. In Arizona, a Nogales police officer was sentenced to prison for having sex with a sixteen-year-old Explorer. A former Burlington (NC) police officer pleaded guilty to having a sexual relationship with a 14-year-old girl enrolled in the Burlington police Explorer program. Even with previously known suspicions, the police department Brownwood, Texas continued to let a 53-year-old sergeant run its Explorer program and he was charged with abusing a 15 year old that resulted in a multimillion-dollar lawsuit, naming the Texas Rangers, the local prosecutor and the Brown County Sheriff's Office as defendants.
The Explorer cases continue on and on.
A similar situation presents itself at the Boy Scouts.
A jury ordered the Boy Scouts of America to pay $18.5 million to a man sexually abused by a former assistant Scoutmaster in what is believed to be the largest such award against the national organization. The jury awarded the Oregon man $1.4 million in compensatory damages. In testimony, a Boy Scouts of America executive told a jury that a prevention program was developed in the 1980s, but seldom used. The jury said the Boy Scouts were negligent for allowing the former assistant Scoutmaster to associate with Scouts after the scoutmaster admitted to a Scouts official in 1983 that he had molested 17 boys.
The Scouts never required criminal background checks on all applicants to be Scout leaders. A sex abuse prevention program was put into place decades ago, but had never been evaluated or analyzed to determine its effectiveness.
In 2011, testimony uncovered there were the so-called red-flag files that the Boy Scouts of America have fought to keep out of the public eye. Fourteen other clients are suing the Boy Scouts for sexual abuse; two of those men are alleged victims of Timur Dykes, a convicted pedophile and assistant Scoutmaster.
Earlier this year a jury faulted the Scouts for failing to protect the young boys from abuse. Six men, who were molested by the Scout leader, as children, have settled their cases with the Boy Scouts of America. The settlement prevents the attorneys and the men from talking about how much money each received in compensation for abuse that happened in the 1980s. The amount, however, likely reaches into the multiple millions of dollars, considering the Boy Scouts of America also have agreed to pay the state $2.25 million in punitive damages as part of the settlement. The men, who are now in their 30s or early 40s, were all members of the same Southeast Portland troop.
Apparently there was repeated evidence of abuse by Scout leaders in more than 1,000 files compiled on suspected molesters among adult volunteers from 1965-85 and introduced as evidence in a case. Why didn’t they know? Recently in testimony they said ‘they never looked in the files’. The case was the first of six filed against the Boy Scouts in the same court in Oregon. Because the Boy Scouts have settled some lawsuits out of court, it is difficult to say where the total awards imposed by the Portland jury rank with those of the past.
In a 1987 sex abuse case, an Oregon jury awarded more than $4 million to the victim, including $2 million in punitive damages against the Scouts that were thrown out when the case was appealed. A jury in San Bernardino, Calif., awarded $3.75 million to three sex abuse victims in 1991. From 1984 through 1992, the Scouts were sued at least 60 times for alleged sex abuse with settlements and judgments totaling more than $16 million. (2010)
This has been its biggest challenge in its 101st year. There are others.
It is battling a perception that it bars gay people and atheists, not to mention girls under 13.  There is little connection to minority communities.  The organization, long an icon of wholesomeness in a simpler America, has seen its membership plunge by 42% since its peak of 1972, when there were 4.8 million scouts. In the last decade alone, membership has dropped by more than 16% to 2.8 million.
Self-regulation in this case did not work. If it does not work with police officers that are entrusted with teens and Boy Scouts, why would we think it would work for the charitable sector, the securities industry, the mining industry and many others that have failed miserably to monitor to minimal standards of deportment.









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)

Monday, March 12, 2012

Donors Don't Check


In a new survey, commissioned by CanadaHelps.org and Capital One Canada, about 45 per cent of people ages 18-34 take no steps to ensure a charity is legitimate before making a donation. Only 19 per cent of those in that age group are very concerned about falling victim to a fraudster, compared to 27 per cent for other age groups. Additional survey results:
 Half of Canadians (53 per cent) are less likely to give to charities because of the possibility of falling victim to a fraudster; 72 per cent believe there's more charity fraud today than 10 years ago. (link)





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)

Monday, February 20, 2012

This a Fascinating Update on A Charity Fraud Master


by Gary Snyder

Staff writers at the Tampa Bay Times have spent an inordinate amount of time putting together a fascinating article on one of the notorious charity criminals on record.

Readers of Nonprofit Imperative will remember ‘Bobby Thompson’ as the head of U.S. Navy Veterans Association until the charity collapsed under scrutiny in mid 2010. He is now a fugitive, wanted by federal officials on charges of money laundering, fraud and identity theft. “Bobby Charles Thompson” ran the bogus nationwide non-profit group while collecting over $20 million and lavishly giving that money to politicians that gave him direct access to some of the leading politicians in America, including the president of the United States.

This is another interesting case where the press uncovered the crime. Charity regulators were absent, but they are now all over the country trying to capture of Thompson. Thompson disappeared after, the then, St. Petersburg Times questioned him about some political donations and began publishing an investigative series. Shortly thereafter Ohio brought charges against him where authorities say he donated nearly $300,000 to political causes. Authorities know that ‘Bobby Charles Thompson’ is not his real name.
They are still clueless as to where he is and exactly where all the money went. It is astounding that this person could get as close to the president and other elected officials without security clearance. (link)

Through his aliases he stumped the Internal Revenue Service, several charity regulators and thousands of contributors. He stole other names as he needed them. As the Times article notes, of his seven known aliases, four were stolen from people who either lived or worked on Indian reservations. Among the aliases assumed by the Tampa man was a policeman who died in 1999. Elmer L. Dosier's children told the Times they were completely unaware their father's name and Social Security number had been used — after his death — to get an Indiana driver's license. The photo on the license: the founder of Navy Veterans.
Four other men whose identities were stolen also told the Times they were clueless about the theft until told by investigators. None of the men recognized photos of the man who misused their identities. They could not imagine any way their paths had crossed the fugitive's or even each other's. They hadn't attended the same schools, been in the same military units or belonged to the same clubs. And none of those interviewed by the Times said they ever donated to Navy Veterans. The Navy Veterans founder stole his primary persona from a Choctaw Indian born 65 years ago in Mississippi. Though the fugitive claimed to be 1/16 Choctaw, people who know the real Bobby Thompson say he looked nothing like his alter ego.
This may or not be its signature story, but the Times has done an admirable job in keeping its readers up on the latest sightings of Thompson and the latest mishaps of the regulators.
Just great investigative work!





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)Tampa Bay Times

Thursday, February 16, 2012

Charities Better Look Over Their Shoulder

by Gary Snyder


Since there is no self-regulation by charitable sector leadership, law enforcement agencies are having to step in and take charge. New York is the latest to initiate it.


Attorney General Eric T. Schneiderman is the latest politician to offer an overhaul plan aimed at nonprofit groups. But the report he unveiled on is as much an aid package for nonprofit groups as an attempt to hold the line on runaway compensation and other abuses. Mr. Schneiderman does propose some steps to bolster self-policing by nonprofit groups, including the use of independent directors to monitor compensation and other issues — though it’s not clear from the report or a legislative summary provided by Mr. Scheiderman’s office how an “independent director” would be defined. 


But the effectiveness of Mr. Schneiderman’s plan most likely hinges on his proposal to tweak state law to give the attorney general greater authority to challenge excessive compensation in court. “We must maintain the public’s trust by ensuring that nonprofits are governed effectively, and with meaningful oversight. ”The governor created a panel to review nonprofit compensation last year, after a report was published in The New York Times about compensation abuses at one of the state’s largest nonprofits serving the developmentally disabled. 
(New York Times) (crainsnewyork)



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)

Tuesday, February 14, 2012

Some Insight Into the Komen Foundation

This some-what dated article may give you some perspective on the recent firestorm between the Komen Foundation and Planned Parenthood
http://southernstudies.org/2012/02/flashback-how-the-komen-foundation-fights-health-reform-and-fails-cancer-patients.html




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)

Incredible: Smithsonian Under Investigation, again


by Gary Snyder

Sen. Charles E. Grassley (R-Iowa): “I am now concerned that Smithsonian Secretary Clough has incurred many of the same type of questionable travel expenses as his predecessor and his promised changes at the Smithsonian may have been little more than lip service.” Secretary G. Wayne Clough had taken 59 trips since he became secretary in July 2008 with trips to France, Alaska and “resort destinations in Florida and Colorado.” “The Smithsonian is proud of the fact that two-thirds of its travel funds come from outside sources,” a Smithsonian statement said.

In the past, Grassley demanded accountability from the Smithsonian regarding the expenses of former Smithsonian Secretary Lawrence M. Small. A Washington Post investigation found that Small was using federal funds for his travel and upgrades on his Smithsonian office and private home. Small resigned in March 2007. 
In the wake of Small’s resignation, the Smithsonian tightened its travel policies, following federal travel guidelines. “Clough routinely traveled first class on commercial flights, a practice that is prohibited under federal guidelines (unless medically necessary), and opposed by the Smithsonian’s own auditors. Clough repeatedly cited a medical condition as the reason for his first class accommodation, although travel photos taken by the Smithsonian show him hiking and exploring the outdoors.” according to Junketsleuth.com. (link)











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)

Monday, February 13, 2012

Congressional Charity Earmarks Benefit Wrong Family Members

               by Gary Snyder



           Since members could earmark as long as they could certify to congressional committees that neither they nor their immediate family members stood to benefit from the earmark in question they did so with abandon. This is particularly acute under House rules which only require lawmakers certify only that neither they nor their spouses hold a financial stake in their earmarks, not other members of their immediate families. 

      The Washington Post found that Senator Tim Johnson’s wife was hired as a contract employee to evaluate a program that a Johnson earmarked for $4 million. His wife, Barbara, was paid an annual salary of $80,000. 

      Rep. Ed Pastor (D-AZ) is a member of the powerful House Appropriations Committee directed millions to fund the scholarship program for at-risk high school students headed by his daughter in Arizona. The Arizona Republic reported in 2007 that Laura Pastor was not the highest-ranked candidate for the position but had received a salary at the top of the pay scale. The paper also discovered that an equal-opportunity investigator had warned college officials that “we will not be able to totally defend the hiring decision.” 

      Rep. Sheila Jackson Lee (D-Tex.) has championed millions in earmarks to the University of Houston while her husband, Elwyn C. Lee, has helped to run the school as a senior administrator. He was named the university’s vice president for community relations and institutional access with a salary of $210,491 a year. 

      As a member of the House education committee, Rep. Robert E. Andrews (D-N.J.) has secured six earmarks worth $3.3 million for a scholarship program at Rutgers School of Law in Camden. His wife, Camille Spinello Andrews, is an associate dean. 

      Rep. Rob Bishop (R-Utah) requested earmarks worth more $1.2 million for Weber State University in Ogden. The university hired the congressman’s son Shule Bishop as a lobbyist. He serves as director of government relations. 

      Congressman Daniel Lipinski, helped secure $2.5 million in earmarks since taking office for rail projects that are overseen by the Chicago Transit Authority. The CTA is one of his father’s, William Lipinski, lobbying clients which paid the former congressman $766,330.20 in fees since 2007, according to the transit agency. The Chicago Sun-Times first reported Lipinski’s earmarks for his father’s client in 2010. 

      Rep. Corrine Brown (D-FL.) helped secure $21.9 million in earmarks to six clients of Alcalde & Fay, a lobbying firm that employs her daughter, The Washington Post found. During that time, the clients paid the firm more than $1 million in fees to represent them before Congress, records show. Other earmarks by Brown have been previously reported. She was the sole sponsor of $1.79 million in earmarks to a seventh client, the Community Rehabilitation Center. At the time, her daughter, Shantrel Brown, worked as a lead lobbyist on behalf of the center, the Florida Times-Union reported in 2010. The earmarks were secured to help finance “substance abuse and mental health programs” at the center and to upgrade a Jacksonville, Fla., strip shopping mall where the center is located, records show. The federal lobbying reports say Shantrel Brown sought “federal funding for substance abuse and mental health programs” from 2008 to 2010.

















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)

Tuesday, February 7, 2012

Are Breast Cancer Charities Worthy of Your Support?

By Gary Snyder

Aside from all of the front-page news about the Susan G. Komen/Planned Parenthood fiasco, there are other more significant issues that should be addressed. This storm will eventually blow over, but the conduct of the breast cancer charities may not.
The Incredible Mix up
As anyone on earth knows, Susan G. Komen for the Cure, the nation's leading anti-breast-cancer charity pulled the plug on funding Planned Parenthood grants for cancer screenings and mammogram referrals. The Komen foundation had several reasons none of which were coordinated with interviews or corporate public relation statements from the president and chairman. It was a chaotic nightmare. After a firestorm of criticism for four days, Komen reversed it its decision.
Many issues seemed to swirled around Karen Handel, Komen's staunchly anti-abortion vice president for public policy. Insiders suggest that she was the main force behind the decision to de-fund Planned Parenthood but the public relations experts tried to attempt to make that decision look nonpolitical. Ari Fleischer’s involvement did not help matters. The one time Bush Press Secretary and Planned Parenthood detester, and confidant of Nancy Brinker, played a part in orchestrating the debacle. As a result, some key insiders resigned.
The Organizational Conflicts
The attention to the Planned Parenthood conflict brought interest in the internal operations of the Susan G. Komen for the Cure foundation. According to financial documents Nancy Brinker took home $417,000 in salary in 2010. This is not an extraordinary salary for the size of the charity, but $3 million for travel and $28 million in office and consulting fees is. As I write this article, I realized that Karen Handel has resigned. I wonder what the payout is going to be. According to its 2010 federal tax submission the organization paid former CEO and President Hala Moddelmog almost $300,000 for not working one hour.

The charity’s decision-making reflects many breast cancer charities that have received recent unfavorable expose. Brinker is founder and both the chairman of Komen’s board of directors and its CEO. This dual role causes many problems. The chairmanship is supposed to be at arm-length relationship with the operation arm of the organization. In her two roles she is both recommender and decision-maker on all foundation matters. As staff she is able to distill all information that goes before the board. As board chair, she is able to influence the outcomes of all matters she, as staff, recommend. This is toxic relationship.

To exacerbate the problem she is able to pack both the staff and board with those that are of similar mind. Members of family of leaders are on the board. This entire set up gives the appearance of a fiefdom.

Some Breast Cancer Charities Are Dubious 

Breast Cancer is huge business. About $6 billion a year is committed to breast cancer research and awareness campaigns. As a Marie Claire magazine report noted, all is not well in the breast care industry. (public declaration: I assisted on this article) Thousands are making handsome salaries and some are not even legit.

The Coalition Against Breast Cancer offers virtually nothing to patient after taking in millions. This charity offers all the pitfalls of charitable giving. New York Attorney General Eric Schneiderman called the charity a sham. Over a period of 15 years the principal associates stole $9.1 million. The telemarketing firm took $3.5 million for its services.

The United Cancer Council hired Watson & Hughey Company (W & H) as its only fundraiser. During the term of the contract, of its net charitable proceeds of $28-odd, $26-plus million went right back out, to W & H.

The National Breast Cancer Foundation was a family affair. With collections of about $10 million, the founder takes home $200,000, her son $180,000, her husband and another son all share in the largess at the expense of those in need. It even endorses misleading jewelry. About 40% of its revenues were not spent toward its mission.

Cancer Fund of America is a controversial group. Both the Better Business Bureau and the nonprofit rating agency Charity Navigator have blasted it for giving less than a penny of every dollar raised to cancer patients. Charity Navigator once listed the Cancer Fund of America Support Services, as one of "10 Non-Profits That Make Ebenezer Proud." In 2007, the Georgia Governor's Office of Consumer Affairs accused that group of making false and misleading claims in its mail solicitations, allegations that the Cancer Fund of America ultimately settled for $50,000

Breast Cancer Society (BCS) claims it raised $50 million in contributions in tax filings but when pressed by Marie Claire magazine the founder said that it raised just $15 million in cash donations in 2009. The other $35 million represented his estimate of medications that the BCS accepted as gifts or bought at a major discount but then listed on its books as having much higher values. He says he gets the meds from other organizations, including the Ontario-based Universal Aide Society, which saw its Canadian charitable status revoked two years ago for malfeasance. In 2009, the leader collected a $223,276 salary.

With incredible fraud and virtually no check on governance, breast cancer charities should be under assault.  Exerting its leadership, Susan G. Komen has a unique opportunity to make changes that will instill the confidence that has been sorely eroded.














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)