Details on FTC enforcement action against four cancer charities – 5

July 14, 2015, 6:53 am

This is the fifth in a series of posts diving deep into the detail mentioned in the complaint by FTC and all Attorneys General against four named cancer charities.

This is the first of two posts on specific comments in the complaint addressing variance authority.

I will quote and comment upon the complaint which can be found here. My posts in this series are visible using the FTC tag.

Defendants Improperly Reported Receipt and Distribution of GIK They Did Not Own   Read the rest of this entry »

Strong rebuttal to reporting by CIR and Tampa Bay Times

January 30, 2014, 8:39 am

Charity Services International has posted a strong reply to the combined reporting by CNN, CIR and the Tampa Bay Times. I’ve mentioned their report here and here.

The CSI reply is A Breakdown of the Tampa Bay Times Story.

If you are interested in this issue, you really will want to read the full rebuttal.

It is broken down into four sections:

What the reporting got right. What CSI believes the reporting got wrong. Assertions that are questionable. Finally, non-essential elements of the story.

Please read the full article.

Three thoughts after reading the strongly worded rebuttal: Read the rest of this entry »

About that Gardasil shipment and that wave to the CNN reporter

June 19, 2013, 9:25 am

Robert Anglen has a report in the Arizona Republic on a Mesa charity tied to inquiry. He had an interview with the CEO of the Breast Cancer Society.

The CEO says that what appeared to be an effort to vote CNN the number 1 network was a failed attempt to wave goodbye to the reporters while simultaneously holding a cell phone.

Far more serious is the discussion of variance power.

Read the rest of this entry »

World Help revises 2012 report again to say the 2011 numbers were restated again

May 10, 2013, 10:38 am

My compliments to World Help. They have revised their financial statements to disclose the 2011 numbers were revised again.

My hat is off to them for the courage to revise the report.

The newest report can be found at their website here.

Note 12 is new. It is titled Comparative Statements and addresses the second revision of 2011 information.

The note says management restated the 12-31-11 financial statements.

The reason is provided. Quoting, the report says: Read the rest of this entry »

Accounting ideas in World Help’s revised financial statements

May 8, 2013, 11:18 am

There are some accounting concepts in the most recent financial statements released by World Help that warrant discussion. This post will walk through those items I noticed.

This will be a long post. You might want to get a fresh cup of coffee and settle in.

Efforts to reach out to World Help

I have been asking World Help for their comment for a week and a half. The only reply I have received was when the president’s assistant gave me the e-mail contact for the organization’s outside media consultant. I have sent e-mails to the president’s assistant and the contract media consultant several times and received no replies.

Proper accounting is a broader issue in the R&D community than has been discussed

The focus of conversation on accounting in the relief & development community has been variance power and the valuation of medicine, particularly 500 mg mebendazole.

I perceive there are issues involved in disclosures that haven’t yet been discussed.

In accounting shorthand, the matters I see that have not yet been addressed are disclosures of concentration of contributions, concentration of donors, and estimates with a reasonable possibility of change in the near-term.

Read the rest of this entry »

GIK valuation – Things going on behind the scene

May 7, 2013, 6:00 am

Previous posts have discussed an article at Chronicle of Philanthropy: Charity’s Exaggerated Revenue Could Affect Other Groups.

I saw two interesting background comments in the Chronicle’s article that tell me there is more going on than is visible.

The AG task force

The first is a quote from the office of the New Mexico Attorney General: Read the rest of this entry »

Impact on downstream charities from World Help revising their financials

May 6, 2013, 7:38 am

As discussed in an earlier post, World Help has revised the amount of 2011 gift-in-kind contribution from $223.7M to $1.6M. That is a 99.3% reduction.

What is the impact on charities who received GIK from World Help? This question is touched on by Aronson Nonprofit Report blog in their post I discussed here. That issue was discussed at more detail in a long article at Chronicle of Philanthropy: Charity’s Exaggerated Revenue Could Affect Other Groups.

The Chronicle article identifies two specific charities which received donations from World Help: Read the rest of this entry »