Complaint Review: Childhelp -

 So interestingly enough I found out through a little research that the Chief Development Officer has a questionable history with a former organization that was ripping off the state of Arizona. It was pinned on the Chief Financial Officer but several contacts I have that worked there acknowledge that the corruption was widespread at the executive and current CDO at Childhelp knew or should have known about it. I won't even go on to mention the personal fodder that followed this guy with regard to questionable office relationships. You often hear the defense that the complaintant is a "disgruntled ex-employee". I find sometimes those are the best people to tell the truth. I can't speak for this particular instance but usually behaviors have a pattern.

The information contained in this report is patently false. I would keep in mind that this report was generated from a “past executive employee”, who may have some ill feelings toward the accused organization. As a current executive employee of the accused organization, let me provide the following substantiated and documented facts as a rebuttal to the erroneous information found in this report.

1. This report begins speaking about the 6 VIP trips to Italy that were sold at the Founder’s Dinner where bidders thought the money was going to the organization. FALSE.

These packages were not presented as items to “bid on”. The buyers of these packages, for a set and determined price, wrote their checks DIRECTLY to Fight Night. The two packages that were auctioned off for the benefitting organization, were sold BEFORE the Founder’s Dinner, and 100% of the proceeds from those packages were given, and are recorded, by the falsely accused organization.

2. The report goes on to say, “donors basically gave Jimmy Walker 400k and didn’t even know”. FALSE.

Jimmy Walker did not personally receive any money. Every check written was written directly from the package buyer to Fight Night.

3. “The national board didn’t know about this”. FALSE.

Every national board member in attendance of the Founders Dinner witnessed the presentation of the packages as a “purchase” not a “bid”, and understood – as the buyers did – that the checks were being written to Fight Night. Furthermore, following the gala event the following night, every national board member received and reviewed a full financial account of the event, and noted that only 2 packages for Italy were auctioned off to the benefit of the organization – not 6.

4. “Over the years so much money has been wasted on high price consultants and expenses…not to mention the salaries they pay which are astronomical for a charity that has been struggling for years”. FALSE.

The organization has had an independent, third party audit of their financials every year which has been public record and placed prominently on the organization’s website. As most organizations experienced through the recession, the organization has had some challenging financial years of late. However, the organization has managed itself appropriately to keep the doors open over those years without displacing a single child from program or service delivery. Furthermore, the organization’s financial position has strengthened year over year for the past 3 years, which are clearly seen on the public records of the organization’s audited financial statements and the organizations filed 990. Both documents can be found on the organizations website. Both documents clearly reflect a limited percentage of funding for administrative and overhead expenses (like high paid consultants and salaries) with 90 cents of every donated dollar going directly to the provision of services. Furthermore, the executive salaries of the Ladies have been reviewed and assessed by an independent, professional, compensation valuation firm that reported that the Ladies have been “undercompensated for services rendered”. A document that can be provided upon request.

5. “If only more of the money went to actually help the children”. It Does.

The Better Business Bureau Wise Giving Alliance recommends fundraising costs not exceed 35% of contributions according to a recent Nonprofit Times article, and the findings from a national survey by Grey Matter Research & Consulting titled, “Where’d My Money Go?”, reports that “the average American believes that a charity should spend no more than 23% on overhead but that charities actually spend 36.9 cents on the dollar”. Well this organization spends more than the BBB Wise Giving Alliance recommendation on direct services to children, more than the average American’s expectation, and more than the national average for charities of like size. This organization spends less than 10% on overhead fees meaning more money does actually go to help the children, of which they have helped more than 9 million in their history.

To confirm and review any of the information presented in this rebuttal, I encourage you to contact the organization directly, and ask for a CURRENT executive employee.