Source: Dani Simmonds, stock.xchng
Today's Arizona Republic reports that a network of charities getting donations from the Combined Federal Campaign has been using that money to pay for vacations in France while supplies they claimed had been sent to hospitals sat in warehouses. The worst part is their actions are entirely legal.
In the article Follow the donations: Charities kept most cash for themselves, Republic reporter Robert Anglen details an investigation into charities tied to a Phoenix ministry. His report demonstrates even charities that look good on paper may not be providing the help as they claim.
The article reports the Don Stewart Association network of charities used methods that artificially inflated their donations and reduced their expense ratios. The organization passed materials such as medicine among the different charities in the network, each one "donating" the goods to the next and claiming full value for the items. The association claimed donations many times the actual value of the items, even as the goods themselves sat unmoving in a warehouse.
The organization's defense is that what they are doing is allowable under the law and appropriate to Generally Accepted Accounting Principles, a set of guidelines for ethical financial transactions. As stated in the Republic article,
"Just because it is a generally accepted accounting practice doesn't mean it is the best way," said Daniel Borochoff, president of the American Institute of Philanthropy in Chicago, which rates charities on its Web site, Charitywatch.org.
The piece is the first in a series that will appear in the Republic over the next few days. While the story being told is a disturbing one, there is a larger lesson here.
Many of our kids receive services from nonprofit organizations serving children with disabilities. The help we receive makes us sympathetic to the plight of other families and we want to help. As rough as our kids have it, there are people out there who have it rougher.
We want to know our money is getting to the people in need, but examining the financial records of charities doesn't tell the whole story. Get to know the organization - what they do, who they serve, how much help they provide. If possible, volunteer your time. They will appreciate the help and you will get a close look at operations.
In future weeks I will profile nonprofit organizations around the Valley offering services to special needs kids. I have a list of charities already but I'm sure there are many I don't know about. If there is an organization you would like me to spotlight, email me at examiner@andyhumphrey.net and let me know about them.
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