Report: #1098166

Complaint Review: Winesong!

Winesong! Mendocino Coast Hospital Foundation Re: Winesong! -- Mendocino Coast Hospital Foundation Fundraising Scam Fort Bragg California

Reported By:

Anonymous — Anonymous California
Submitted:

Sat, November 09, 2013
Updated:

Wed, November 13, 2013

Winesong!

775 River Drive, Fort Bragg, CA 95437

Fort Bragg, California

USA
Phone:

(707) 961-4671
Web:

www.winesong.org
Category:

Government Stupidity

*Author of original report: Re: Winesong! -- The Cost of Cheating a Hospital *Author of original report: Re: Winesong! -- The Value of a Hospital Endorsement

November 9, 2013

Re: Winesong! -- Mendocino Coast Hospital Foundation Fundraising Scam

Dear Ripoff Report Reader,

Mendocino Coast Hospital Foundation started as a membership organization in 1984 to provide financial aid for operations and modernization for the local hospital. Virtually all of the money it raises now comes from an annual fundraiser called Winesong! According to the Foundation, the proceeds average $250,000 a year.

But year in, year out, the Hospital's wear-and-tear runs $1.5 million. And according to their auditors, sometimes it gets nothing. Zero. Now the Hospital is bankrupt. How'd it get there? Winesong!

The Foundation's website -- applauds -- this fundraiser. But you won't find any facts and figures about what they charge for it. Nor will you find any information about how much they could be raising. You won't find the Foundation's original bylaws or mission statement there either. If you show up in person and ask, you -- might -- get the Foundation's newly minted bylaws. But that's all you'll get.

No problem. You can find everything else at the California State Registry of Charitable Trusts website. But it ain't pretty.

Look at the mission statement on the Foundation's articles of incorporation. Compare it to the one on their website. The word "modernization" has been removed. So has "financial aid for operations". In its place is the word "support". Then look at the membership status on the Foundation's bylaws. Compare it with the checkbox on their tax returns. What began as a membership organization now has no members at all. None. So the governing board is completely self-elected. Also absent is the word "trustee". It's been replaced by the term "board member".

Foundation tax returns reveal the ugly truth about Winesong! For six hundred grand raised, $100k is expensed for food, beverages, rent and facilities costs. Okay. But there's another quarter million plus written off to "Other expenses". For a -- volunteer -- event. The Foundation gets another $250k a year in grant money -- all of which goes to pay Foundation overhead. Like sixteen grand a year for office space that the Hospital provides for free.

At the helm of Winesong! is former Hospital president Charlene McAllister. She's also the secretary of MRB Research, the delinquent charity involved in laundering nearly a million dollars in stolen money (see MRB Research -- Delinquent Charity). McAllister signed the Foundation's 2008 tax return, where you'll find a more successful fundraising effort. Philanthropic Professionals, Inc. charged $70,000 to raise a total of $270,000 in cash for the Foundation that year (plus $1 million in grants over four subsequent years). But PPI was never hired again. Why? Because it made Winesong! look bad.

That's the true cost of Winesong! Making the Foundation look good. Forget about providing financial aid for the Hospital. Or modernizing it. The Foundation exists for Winesong!

Sincerely,

Anonymous

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References:

California State Registry of Charitable Trusts: Mendocino Coast Hospital Foundation

rct.doj.ca.gov/MyLicenseVerification/ ; go to link at fourth bullet point, "Click here to search for a Organization instead of a person."

enter "Mendocino Coast Hospital Foundation" in "Organization Name" field and "CA" in "State" field.

Mendocino Coast Hospital Foundation Website, November 9, 2013

mchfoundation.org

Winesong! Website, November 9, 2013

winesong.org

Mendocino Coast Health Care District Audited Financial Statements, February 1, 2010

fpr.net/fulfillment/pdf/post_os_mendocino_coast_health.pdf

Mendocino Coast Hospital District Bankruptcy Documents, October 17, 2012

mcdh.org/bankruptcy-documents/

Mendocino Coast Hospital Foundation 990 Tax Return, December 14, 2009,

bulk.resource.org/irs.gov/eo/2009_12_EO/68-0041554_990_200812.pdf

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2 Updates & Rebuttals

Anonymous

Anonymous,
California,

Re: Winesong! -- The Value of a Hospital Endorsement

#3Author of original report

Wed, November 13, 2013

November 13, 2013

Re: Winesong! -- The Value of a Hospital Endorsement

Dear Ripoff Report Reader,

When it comes to fundraisers, endorsements have a certain value. Especially when it's from a hospital. But what's the actual value of that endorsement?

Fortunately, we can actually see that in one our neighboring districts, the Sonoma Valley Hospital here. They have the Sonoma Valley Hospital Foundation to raise funds for them here.

According to their 2011 tax return here, SVHF brought in $77,000 with an event called, "Dancing With Our Stars". That was -- with -- a hospital endorsement. In 2013, they went -- without -- that endorsement here. How much did they bring in? A whopping $15,000!

How did "Dancing With Our Stars" lose that endorsement?

According to financial statements here, Sonoma Valley Hospital's wear-and-tear was costing them around $1.5 million a year. But according to SVHF tax returns, SVHF was only bringing in around $250,000 a year. Sound familiar?

It should. That's exactly what's happening at the now-bankrupt Mendocino Coast District Hospital with Winesong!

The only difference is that Sonoma Valley Hospital had the nerve to put its foot down. According to a -- responsible -- newspaper here, the entire SVHF board was forced to resign en masse, paving the way for a new board and better policies.

How'd it work out for the "Dancing With Our Stars" event? Good question. That fifteen grand doesn't count expenses. According to the SVHF tax return here, expenses for that event ran around twenty-five grand. So that's a ten thousand dollar loss for the event's new sponsor, the Sonoma Community Center here.

Meanwhile, Sonoma Valley Hospital has essentially dissolved SVHF, and now runs it as an in-house entity.

The folks at Sonoma Valley Hospital were smart enough to realize the value of a hospital endorsement.

So are the folks at the Mendocino Coast Hospital Foundation. They're also smart enough to stuff the local newspaper with puff pieces like the one here: "Winesong! raises half million".

The local newspaper wasn't smart enough to look at MCHF tax returns or pay attention to the neighboring newspapers.

Neither was the now-bankrupt local Hospital.

Too bad for us.

Sincerely,

Anonymous

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References:

Sonoma Valley Hospital Website, November 13, 2013

http://www.svh.com

Sonoma Valley Hospital Foundation Website, November 13, 2013

http://www.svh.com/foundation/

Sonoma Valley Hospital Foundation 2011 Tax Return

https://bulk.resource.org/irs.gov/eo/2012_10_EO/94-2832488_990_201112.pdf

Sonoma County Center Newsletter, May 8, 2013

http://sonomavalley.patch.com/groups/around-town/p/stornetta-o-malley-take-first-place-in-dancing-with-our-stars

Sonoma Valley Hospital Financial Statements, October 23, 2012

http://www.svh.com/wp-content/uploads/calendarPDFs/Audit_Committee_Agenda_Package_10-23-12.pdf

"Sonoma Hospital foundation directors resign en masse", Press Democrat, July 19, 2012

http://www.pressdemocrat.com/article/20120719/articles/120719490

Sonoma Community Center Website, November 13, 2013

http://sonomacommunitycenter.org

"Winesong! raises half million", Mendocino Beacon, September 19, 2013

http://www.mendocinobeacon.com/localnews/ci_24130356/winesong-raises-half-million

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Anonymous

Anonymous,
California,

Re: Winesong! -- The Cost of Cheating a Hospital

#3Author of original report

Wed, November 13, 2013

November 13, 2013

Re: Winesong! -- The Cost of Cheating a Hospital

Dear Ripoff Report Reader,

My apologies for the links that didn't work on the opening post. They've been republished below.

Mendocino Coast Hospital Foundation applauds itself here for donating certain equipment to the local Hospital. At the top of their list is something called "Digital Imaging". Sounds pretty high-tech, doesn't it?

The local newspapers seemed to think so. The Mendocino Beacon and Fort Bragg Advocate applauded them too here. "There will no longer be a need for arduous trips inland and south for MRIs and related diagnostic tests; a diagnostic imaging center will soon be built at Mendocino Coast District Hospital." That was in 2009. So I guess we had -- no -- diagnostic imaging center here before then. Okay.

The Winesong! media cartel promised that this fancy new system would help cardiac and stroke patients. So how'd that work out?

Two years later, the Hospital was trumpeting its ratings here. Not for cardiac and stroke patients, but for hip replacements and pneumonia care. "I am extremely proud to announce that Mendocino Coast District Hospital has been awarded a 5-star rating by HealthGrades, the leading independent healthcare ratings organization, for 2 of our Hospital services for 2010-2011. The 2 services are Total Hip Replacement Surgery and Pneumonia Care." Wow. But what about cardiac and stroke victims? And that fancy new digital imaging center?

Look at HealthGrades here. Check out the ratings for heart failure, stroke and chronic obstructive pulmonary disease. All of them are -- one-star -- ratings. As a report card grade, that's an 'F', folks.

Let's look at the ratings for hospitals at one of those "arduous trips inland and south". According to MapQuest here, Frank R. Howard Hospital in Willits is thirty-five miles away. So how'd they rate?

Look at HealthGrades here. The Hospital in Willits has three-star ratings in all three categories!

Does the Willits Hospital have a Foundation? Yes, they do. Right here. Do they have a Winesong! to raise money? Let's take a look at their tax return here. They have no Winesong! Oh my gosh! In fact, they have no fundraisers at all. What? How in the heck do they raise any money?

Back in 2006, MCHF found a company called Philanthropic Professionals Inc. here to raise money for them. How'd they do? According to MCHF's 2008 tax return here, they raised over $270,000 at a cost of around $70,000. Then they vanished. Why?

That was the first question. So a concerned Hospital patient contacted PPI and asked them. According to President Laura Nelson, PPI disappeared because MCHF actively undermined PPI's fundraising efforts. How? By badmouthing them to the local Kiwanis club.

The second question was how PPI had come to work for MCHF. Nelson said it was on a referral from a phyician at Frank R. Howard Hospital. "We raised millions for them," she said.

The third question was whether or not this type of thing was unusual. According to Nelson, it's only happened to PPI in one place -- here in Winesong! country.

The last question was whether or not PPI would ever work for MCHF again. Nelson's answer was unequivocal. "No," she said.

With the local Hospital now bankrupt, the cost of Winesong! is obvious.

Sincerely,

Anonymous

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References:

California State Registry of Charitable Trusts: Mendocino Coast Hospital Foundation

http://rct.doj.ca.gov/MyLicenseVerification/ ; go to link at fourth bullet point, "Click here to search for a Organization instead of a person." enter "Mendocino Coast Hospital Foundation" in "Organization Name" field and "CA" in "State" field.

Mendocino Coast Hospital Foundation Website, November 13, 2013

http://mchfoundation.org

Winesong! Website, November 13, 2013

http://www.winesong.org

Mendocino Coast Health Care District Audited Financial Statements, February 1, 2010

http://www.fpr.net/fulfillment/pdf/post_os_mendocino_coast_health.pdf

Mendocino Coast Hospital District Bankruptcy Documents, October 17, 2012

http://www.mcdh.org/bankruptcy-documents/

Mendocino Coast Hospital Foundation 990 Tax Return, December 14, 2009,

https://bulk.resource.org/irs.gov/eo/2009_12_EO/68-0041554_990_200812.pdf

Mendocino Coast Hospital Foundation Website, November 13, 2013

http://mchfoundation.org/history.html