As Eddie Haskell of Leave It To Beaver fame used to say whenever Wally did something dumb, “Way to go, Sam.”
We’ve previously written about the ten missionaries who are sitting in a Haitian jail due to their alleged efforts to remove orphans from the country. As we have noted countless times before, many who work for charities rely on the halo that they believe comes with doing good. “We can classify some of our employees as independent contractors.” “We don’t need to file a registration for operating a bingo game because we are small potatoes.” “No need to follow corporate legal formalities because nobody has ever gotten into trouble about that before.”
Well, there are...
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repercussions to relying on the halo. The New York Times reported Monday that
following the arrests of the 10 Americans, health care officials have had
trouble evacuating critically ill children. Ian Urbina, Paperwork Hinders Airlifts of Ill Haitian
Children. We cannot
state that there is evidence of a direct link between the 10 Americans and the
slow down in evacuations. It is
notable, however, that the demand by Haitian officials for increased paperwork
followed the arrests. Mr. Urbina
reports:
Whatever intentions the 10 jailed Americans had when they tried to whisk the children across the border without government approval, many Haitians and aid workers say the case has become a dangerous distraction for a country still in the throes of a huge humanitarian crisis.
The Times reports that prior to the arrest, the
paper work required to evacuate critically ill children was completed after the
fact. According to the Mr.
Urbina’s reporting, pilots are backing out of missions for fear of entanglement in the Haitian legal system.
Guerilla charity of this sort represents the
highest form of arrogance. It also
is insulting to the many established charitable organizations that have the
training, certification, and cultural sensitivities to do the job properly.
The 10 Americans would have been much more helpful had they stayed in Idaho and given money. Today there are reports that the jailed Americans would like more assistance from the U.S. government. We would recommend letting them sit in a Haitian jail to Haitian justice. It would be a set a good example for others.
Lesson: You can
really screw things up if you don’t know what you're doing, but charge ahead.
For further proof of the problems caused when rank amateurs do try more than just give money (or volunteer to assist in the efforts of an established charity that knows what it is doing) following a disaster, we need only turn
to the last major natural disaster that caught the attention of the American
public: Hurricane Katrina. The New York Post is reporting that one
of the charities that was formed in the wake of that disaster never got the
bulk of its funds to the victims of the relief. Mellisa Klein and Isabel Vincent, Queens Pols Stiffed
Katrina Victims (February 8, 2010).
This time those wanting to do good were a New York State Senator and a New York State
Assemblyman—Malcolm Smith and Gregory Meeks. The Post reports that only $1,392 of the $31,000 collected
was used to aid victims. We
are unable to locate a tax return for this organization on GuideStar. The organization is named New Yorkers
Organized to Assist Hurricane Families or NOAH-F.
This one is a classic. There is reference to an advisory board, with the context
suggesting that this might be the board of directors. The very fact that the reference is to “advisory” indicates
that rank amateurs were behind this venture. One member told the Post, “I never attended any board
meetings.” She also told the Post that
she didn’t even know if there were board meetings. Is it surprising that the most of the money can't be accounted for? We hope New York State charity regulators are looking into this.
The article makes it very clear that no one knows what happened to the money. Keep this in mind when your neighbor tells you he has just set up a charity to help Haitian earthquake victims. Well intentioned maybe, but in many of these cases, the effort is counterproductive. What makes NOAH-F particularly troubling is the addition of politicians, which often means the people behind the charity have hidden agendas that affect what happens to the money. DONOR BEWARE
Internal Revenue Service - Circular 230 Disclosure: As provided for in Treasury regulations, any advice (but none is intended) relating to federal taxes that is contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.
THE FOREGOING IS NOT AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. IF LEGAL ADVICE IS REQUIRED, THE NONPROFIT OR OTHER PARTY IN QUESTION SHOULD SEEK THE ADVICE OF QUALIFIED LEGAL COUNSEL. If you liked this post, please visit http://www.charitygovernance.com for a description of our training and consulting services. You will also want to acquire a copy of Jack Siegel's book, A Desktop Guide for Nonprofit Directors, Officers, and Advisors: Avoiding Trouble While Doing Good."
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