Tuesday, January 25, 2011

Transparency and honesty in a non-profit organization

Here's something I found a bit odd and just noticed this discrepancy after I checked the DH Foundation 2010 donors page. On the main page on Deafhood Foundation page you will see a thermometer bar graph where it looks like its about 2/3 the way to $50,000 (between $10,000 to $50,000). In other words, they're saying they've collected about $35,000 to date since 2010 when the organization first started. If this is accurate then congratulations! Great! However, I am questioning whether their thermometer donation bar graph is accurate on amount shown.

Allow me to elaborate here.

Let's assume that each donor donated the maximum amount in each of the donated category amount. Adding up all of the donors in 2010 would turn out to be $18,137 on maximum amount of money donated in each donation category ($1 - $99, $100 - $499, $500 - $999, and $1000 - $2,499 with none donated higher than $2,500) while at a minimum it would be $4,242 in total. The amount donated for 2010 would fall between $4,242 to $18,137. Unfortunately, their donors page do not state specifically the total amount donated in 2010.

I took the liberty of screen capturing the main page with the thermometer donation bar graph on January 25, 2011 and added separation notches between $10,000 to $50,000 in $10,000 equal increments. 


From what it looks like the amount donated to date (January 25, 2011) is about $35,000 since starting last year (see their 1 year anniversary announcement) when they officially became a 501(c)3 non-profit organization in their first tax year of 2010.

If the thermometer donation bar graph is accurate assuming they used equal increments of $10,000 between $10,000 and $50,000 then that means from January 1 - 25, 2011 they appeared to have collected an additional $17,000 to $31,000 if you take into consideration last year's donation amount between minimum to maximum amount donated ($35,000 - $18,137 = around $17,000, and $35,000 - $4,242 = around $31,000).  I sincerely hope that thermometer bar graph is correct. Did the DH Foundation collect between an additional $17,000 to $31,000 on donated money over the last 25 days in 2011? Yes, I'm questioning the validity of that amount.  Is the graph accurate on total donated amount since 2010 at around $35,000, currently shown?

Yes or no?

Just as I have questioned DBC's website (NOT a 501(c)3 non-profit organization) about their hit counter showing 2.4 million hits (currently it is at 2.6 million hits four months later) making it look like people are flocking to it in large numbers, I feel it's appropriate to ask about the accuracy of that thermometer bar graph.

For any 501(c) non-profit organizations transparency and honesty are expected from them. This organization made that clear on their status seen at the bottom of their website:
The Deafhood Foundation is a non-profit community foundation incorporated in the state of California with 501(c)3 tax exempt status. Tax identification number 26-2603125.
Transparency and honesty.

ADDENDUM: In December of 2010 they were able to raise over $12,000. But that is not shown in the 2010 tax year Donors page .

ADDENDUM II:  Here's a PDF file of Deafhood Foundation's 2009 tax year return where it shows a $6,400 worth of contribution(s) for 2009 tax year. You can access any non-profit 501(c)3 organization's tax filings through Guidestar and you can get information on the organization's business and taxes.

9 comments:

MM said...

Can they NOT see the correlation between deafhood/culture/equality and rights and relying on begging to put their point ? I think such a 'charity' would not be allowed here. And its not as if it is anything like Paddy wrote about... I don't think MacDonalds and Coca cola was mentioned at all lol....

Anonymous said...

*Shaking my head from --> and <--, back and forth*

Where are the major corporations that were supposed to donate some $$$ to Deafhood Foundation(DHF)?

It's nice for them to know that they've received some $$$$ in interests. However, the DHF MUST have to pay for the dividend tax.

They will have a long, long way to go until it reaches the $25M. Will they succeed? IMO, I honestly don't think so.

White Ghost

Candy said...

Every donor (except these dh die-hards, maybe) typically check out a charity to look for many things. Overhead cost is one, exactly how monies are spend is another. Definitely transparency. So, if integrity of an organization is in question, this will not bode well for that charitable organization. Deafhood Foundation would do well to explain why there's discrepancies in their reporting of donation received.

Because they are a 501 c 3, anyone can take a look at their financial picture and any donor can request information before making a decision on whether or not to donate to said organization.

Virginia L. Beach said...

I have to agree with White Ghost. While $25 million is an ambitious goal and I wish them the best of luck in achieving it, the chances of doing so are relatively slim.

According to the Foundation Center, which maintains accurate records on foundations and philanthropic organizations, the average amount of a given grant in 2010 was $25,000.

In order to raise one million dollars, the Deafhood Foundation would have to capture 8 such grants a year over a period of five years. Some grants they may get more, some they may get less.

Like I said...I wish them all the best, but such a goal might be a bit unrealistic.

Anonymous said...

FYI, Deafhood Foundation is hosting a presentation by Edwin Black on the subject of Deaf eugenics. The date is 2/11/11 and I imagine it's a fundraising project for DHF. although I'm not sure how they will raise money since admission is free! here's the link:

http://www.deafhoodfoundation.org/Deafhood/Home.html

Anonymous said...

For information do refer to http://www.guidestar.org This site is the most reliable as to whether or not this endeavor is legitimate, transparent and ethical or not.

Candy said...

Anonymous...

Doesn't look like fundraising at all..

It looks like something for Edwin Black to capitalize off deaf folks. Admission is free. He is being paid (see all the sponsors listed) and on top of that, he has a book to promote (see flyer - 'book autographing') Edwin most likely is looking at all this with $$ in his eyes, getting paid to speak, expecting deaf folks to buy his books so he can autograph it.

Nothing wrong with it at all, except, all of this isn't helping the deaf community one bit.

MM said...

An organised deaf thought police, sponsored by hand outs, novel..... however Paddy Ladd doesn't come cheap....

theHolism said...

What amazes me is the fact that most people don't even stay in tune with current tax laws. Those that do will know that the tax incentives are no longer there. It's no longer attractive (tax-break wise) to donate to tax exempted nonprofit entities.

It's why numerous non-profit entities including NAD and numerous other deaf non-profit entities have been struggling for the past decade.

We (Corporate Entities) used to be able to write off 100% of the amount we donate to tax exempted entities but it's no longer the case. We're only able to write off approximately 15% of what we donate. For this reason we (Corporate entities) just do not contribute through this channel any longer.

The reason is simple. In the late 90's the government changed the tax codes with hope to encourage growth in manufacturing / production in this nation.

The same is true for real estate investments. It used to be the best avenue for corporate tax breaks but it is no longer the case. The government wanted us to focus on manufacturing and production. It didn't work because the increase in minimum wages forced many corporate entities to outsource their manufacturing needs.

Back in the late 90's I advised NAD and numerous other entities about the upcoming changes but unfortunately they didn't listen.

I also remember explaining this to Ella of Deafhood Foundation as well. Apparently she does not listen too well either. Here's why they didn't listen. They come from the old schools. They don't know how to improvise and adapt to the current tax codes. In short they are not being creative at all.