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by John_Deutzman from New York City

Last Post 8 days, 3 hours Ago


The problem with the Hope for a Cure Foundation for Parkinson's Research is simple. You are given the impression that the money you donate goes to Parkinson's research yet none of their legally required tax documents shows that any money went to Parkinson's research or to anything else for that matter.

Charities that take in more than $25,000 in a fiscal year have to file what's called an IRS Form 990. It's a document that not only is subject to an IRS audit but it is also available for public inspection. It's supposed to be used as a guide for people to look at before they consider donating to a charity. However, most people don't look at 990s. Most kind-hearted people assume that the money they donate will go to the cause advertised.

In doing our research for this story we found:

1. Despite taking in $40,862 in fiscal year 2005, the charity failed to file a 990 as required by law.

2. Strangely, in the same fiscal year (2005), charity founder and president Matthew DePace filed a "Char 500" with New York State claiming they did not make more than the required $25K to report. (Both forms are signed under the penalty of perjury.)

3. Their most recent 990, filed for fiscal year 2006, lists $83,490 for "Supplies" and line 13 "Program Services" is blank. "Program Services" is the line that designates what the organization is actually doing for the charity. So, despite advertising and verbal assurances that money donated to the charity would be donated to "Parkinson's Research," no money, nothing went to anything related to Parkinson's according to the 990.

4. When confronted by Fox 5 on April 13, Matthew DePace claimed they made a mistake on their 990.

5. Less than one day after Fox 5 confronted Matthew DePace, the charity produced a "revised" 990. The revised 990 line showed $2,722 went for supplies--that's $80,768 less than what was on the first return. There were many other changes on the revised 990. Then the charity told us the revised 990 is wrong.

Perhaps the most important things on the tax documents are the following statements:

"Under penalties of perjury I declare that I have examined this return, including accompanying schedules and statements and to the best of my knowledge and belief it is true, correct and complete.

"Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization. How the public perceives an organization in such cases may be determined by the information presented on its return. Therefore, please make sure the return is complete and accurate and fully describes in Part III, the organization's programs and accomplishments."

Upon inspection of the records of this charity we did see several checks written to other Parkinson's charities. But the last one was dated November 8, 2005. That's more than two and a half years ago. In late March of this year, some insiders started asking tough questions of the charity, and several members of the media, including Fox 5, received a tip that something might be wrong. So on April 11, two and a half years since the last check went out, Hope for a Cure wrote a check for $10,000 for the Parkinson's Unity Walk and then right after my e-mail notifying the charity when our story would air, they told us they were sending another $8,000 to the Parkinson's Unity Walk.

I'm not an accountant or a charity expert but the best simple assessment I could make of their records is that most of the money generously donated was used to raise more money--not much benefit to Parkinson's victims in that scenario. To date I have never heard from the president and founder of this charity, Matthew DePace, since our meeting at the dog walk.

As always I'd like to hear from you, your thoughts and opinions on the story or on charities in general.

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Member Comments Total Comments: 51
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jmax123 read my blog view my photos
Apr 28, 2008 | 10:11 PM

It's true; when you donate to a charity organization; by law the organization is only required to send a small fraction of your money to the cause they are marketing for.
Most of our money can legally go into their own pockets, and written off as a marketing expense.
At a business expo I once attended, there was a company trying to sell donation boxes to place in restaurants and stores. (5 boxes for $5,000.) While they were exploiting a terminally ill child’s photo on the boxes, they were actually boasting: “The law only requires you to send 2-percent to the cause, so the profit is 98-percent!”
How sick is that? I couldn't believe people could be so greedy and heartless!

There is no federal or state law that says they have to disclose to anyone what the amount is that goes to the cause. Therefore, it isn’t illegal, but should be illegal, because it is a deceptive scam.
If there is a way to donate directly to the cause yourself, you will be more assured that your money is going to good use, and not keeping scam artists in business.


Jane

jmax123 read my blog view my photos
Apr 28, 2008 | 10:26 PM

Wow! That was great when you pulled out the tax return to his surprise! Always a little humorous twist in your show! This was one of your best!
I didn't know about the 990 form being public record. That is good to know. They should be forced to disclose that form to all people donating! Why don't they revise the laws?
There are so many scamming charities out there, hopefully they will see this.

Jane

gardenstatetyler
Apr 28, 2008 | 10:29 PM

how do i view a 990 for a charity?

puravida read my blog view my photos
Apr 28, 2008 | 10:32 PM

Hi John;
One must do the homework because when donated $ are involved, people loose focus and greed takes over.Many charitable organizations have proved to be frauds; and even legitimate ones frequently send but a tiny amount of the money they collect to advertised worthy causes. “According to the State Board of Social Welfare,” writes Francis Cerral in the New York Times, “charities raise about $22 billion a year in the United States and $2 billion in New York. But in some cases, no money or as little as 5 or 10 percent of it ends up going to the charitable purpose, with the rest being pocketed by the fund-raisers.” Back in 1974 one church-sponsored charity collected $3.3 million. Astonishingly, only $54,000 reached the advertised charity. An indication of what happened to the rest is seen in the fact that $45,000 went to one of the church’s clergymen, and $110,000 to three of his assistants.
I usually donate only to the RED CROSS,they're the first ones to be on site and you see your contributions in action often.
JC

John_Deutzman read my blog
Apr 28, 2008 | 10:51 PM

Hi,

Thanks for all of the comments.
Jane, there really are no laws that require charities to donate a certain percentage of what they take in to the charity but there are laws against filing a false tax return if it can be proven you knew it was bogus.

Garden State, if the charity has a website, they should have a link to their 990 on the site, if not that should raise a red flag. There are also many organizations that monitor charities and many of them have 990's you can look up. I'll try to get you that info tomorrow.
JC there are a lot of good charities out there but you have to shop for them. For example, you can go to the Michael J Fox Foundation web site and look at the huge percentaage of money that goes to research.

sl12349
Apr 28, 2008 | 10:53 PM

Why choose this charity, when there are a million other charities out there that are doing the same thing. Why start with Hope for a Cure Foundation. More research should be done, that not only did the founder being this organization when he was 15, but the fact of the matter is he's helping people out there, become informed about the disease, while they enjoy a wonderful event.

When was helping people such a horrible thing to do? Let's stop focusing on the mistakes people make, and focus on the things people do to better the world. What are you doing?

John_Deutzman read my blog
Apr 28, 2008 | 10:57 PM

JC

Here's the link to a good service.

http://www.guidestar.org/

John_Deutzman read my blog
Apr 28, 2008 | 11:03 PM

sl,

I fully expect an organized backlash from people connected and related to this charity.

I researched this charity and the people involved for two weeks, many times for 16 hours a day. The president was in his 20's the last I checked and surrounded by charity veterans.

Please read the above blog I wrote, look at the story again and perhaps you'll get an idea of why we did the story.

It's just the minor detail that according to the 990 none of the money went to Parkinson's at all during the Fiscal year reported.

John_Deutzman read my blog
Apr 28, 2008 | 11:08 PM

For anyone looking for a good way to check a charities 990's try this link:
http://www.guidestar.org/

htbone51 read my blog view my photos
Apr 29, 2008 | 12:55 AM

You just touch the tip of the iceberg with that one. What about all the tax payer dollars being given away By the President and congress, with NO ACCOUNTABILITY.

John_Deutzman read my blog
Apr 29, 2008 | 7:02 AM

ht,

I agree and how about the great accountability of our city council?

jmax123 read my blog view my photos
Apr 29, 2008 | 9:08 AM

Back in the day, I was a partner in a computer consulting firm. We were hired to install computers with custom accounting software for a church in a poverty-stricken area-----kids barefoot in tattered clothes all over the street. It was sad to see these hungry-looking children, and see their parents donate money to the church every week, while learning the truth of where the money their parent's donated money goes.
The clergy that hired us said to us:
"You can charge us double of your normal fees, because if we don't spend our money by year-end, we will lose our tax-exempt status"
He went on to tell us how he just took his entire congregation to Hawaii for two weeks to help spend the money.

This was something I wish I didn't know, it left me in a awkward position. All I could do is feel bad for the neighborhood donating their desperately needed money to a church with their own interests in mind.


Jane

walter19672006
Apr 29, 2008 | 9:40 AM

thanks for the story. I went to their website and noticed 2 family members also listed. Is this the family business that allows them to line their pockets? this is a public relations disaster and they should be thoroughly investigsted by the Atty general.

jmax123 read my blog view my photos
Apr 29, 2008 | 10:46 AM

All this makes me wonder.... if charities were audited, would the monies have been spent more productively?

Would there be a cure for cancer today?
Would Autism no longer be an epidemic?
Would there be more help available for the disabled and the terminally ill?

Stealing charity money is no different than mugging a grandmother because she is too weak to fight you back!
The difference in jail time and penalties between the street mugger and the charity scammers, is only because the charity masterminds have "our" cash to hire a good lawyer to dig them out if needed. Realizing they will only get a slap on th wrist while raking in thousands, keeps them going.

Why is it so tough to have the laws and penalties revised to today's standards?

Jane

joeljohns79
Apr 29, 2008 | 12:21 PM

John,

Do you enjoy attacking people under false pretenses? I wonder, when you were in school studying communications did you ever think you would be stooping as low as you are now? As an objective human being, wouldn't there be a better way to discuss this issue than showing up to a fundraiser this organization is having and bombarding unsuspecting people with your accusations? I feel bad for you, sir. Your job is probably one of the lowest I can think of.

I have known Matthew Depace for quite some time and I know that his involvement with Parkinson's Disease stems from a personal, heartfelt experience. He started the foundation when he was in high school. The charity is not even 10 years old and there are special instances involving filing tax papers when charity organization is that "young." People do make mistakes but fortunately there isn't always someone around with a video camera hoping to humiliate them for their own personal gain. I think your story is sad and so is your mission. While I can imagine the pourpose of your exposes to be helpful, its clear to me now that its more about being a sensational story.

Here are my questions: What makes you so passionate about Parkinson's Disease and the organizations that support it? Are you personally invested in this? Because Hope for a Cure is. Because Matthew Depace is. He started this organization when he was in high school because of a family member stricken with the disease. While most high schoolers are out partying and wasting time, he was creating something that gave back to the community

joeljohns79
Apr 29, 2008 | 12:22 PM

Here are my questions: What makes you so passionate about Parkinson's Disease and the organizations that support it? Are you personally invested in this? Because Hope for a Cure is. Because Matthew Depace is. He started this organization when he was in high school because of a family member stricken with the disease. While most high schoolers are out partying and wasting time, he was creating something that gave back to the community. Why would someone create and maintain an organization for years that takes probably a huge chunk of his time to do if it weren't for conviction, courage and sincerity? It's sad someone with good intentions can be smeared by a low life journalist with nothing invested in his story and years of hard work can be belittled and diminished by a 5 minute news spot. And yes, he is young, and maybe he did make a mistake. I'd rather make a mistake trying to do something for people who need help than sit around trying to think of my next big story that will keep my face in the news. Fox News has such a poor reputation anyway that Im sure most people take your stories with a grain of salt. At the very least for Matthew and Hope for a Cure's sake, that's what I'm hoping. And to close my argument, I'm 100% postiive that any follow up on this story in any way will lead you and all who follow to this conclusion: Hope for a Cure will remain a great and dependable organization that serves those it promises to. But that probably won't make the news will it?

janelane123
Apr 29, 2008 | 1:46 PM

To all those considering this story. Realize that all charitable organizations at the start up level undergo tremendous overhead costs to actually keep afloat..Gain a reputation, advocate, educate and hold events based on their particular mission. Regardless of the mistake that was made on the 990 it is reasonable for organizations of this nature to have a higher expense balance in its early years.

For those interested in giving to an organization it is always important to research . John seems to create a complete mockery of a group of people advocating for a great cause. People make mistakes and sometimes those around them are not the best advisors. Still, there is no link to the money raised and the bank accounts of those of this organization and i'm sure this JOHN character would be able to report the true nature of the case had he not adopted a preconceived bias. It is unfortunate the sleazy reporters focus on sensationalizing things.

For the individual commenting on similar last names working for the organization. Family advised foundations worldwide are formed directing money towards causes. Take a a look at for profit ventures and you'll find nepotism all around but for all the wrong reasons. Stick to the facts JOHN report to the people and stop trying to belittle those making positive strides.



If this were a real story it would have been on NBC, CNN, ABC. Real news. This guys should go find a job with US weekly or other garbage news.

Don't be ignorant and educate yourself read and hear real news none of which will be reported by this moron

John_Deutzman read my blog
Apr 29, 2008 | 2:34 PM

Joe and Jane,

Maybe if Matthew didn't sign the tax papers which said the charity gave nothing towards Parkinson's then Matthew would not have been the one who had questions asked.
By the way my dad's best friend, once a star football player was stricken with Parkinsonson's and I find it equally absurd that a charity would advertise that the money goes to Parkisnon's research when most of it did not, In fact for two and a half years there is no check that went out for anything related to Parkisnon's.
Matthew was old enough to sign the tax papers and take the credit for being the front man for this organization but suddenly he became too young to properly provide information for a 990 with the help of an accountant.
The summary of my research is in the story and on the above blog. People are free to research this organization on their own. Let me know if you find a legitimate tax document that is filled out as required by law.

jett6674
Apr 29, 2008 | 6:06 PM

John,
If a legitimate (as you call it) tax document comes to light, what are you going to do about it? Are you going to run a 4 1/2 min. story expressing your ignorance and lack of due diligence? More likely the outcome will be, "Oh well", I ruined someone else. I do not believe that anyone above is saying that Matt is to young to sign Tax papers. The message is that he made some mistakes due to lack of experience. Now, you have possible cost him a future of helping people. Including your father's best friend. I hope you relize the damage you cause with your "journalism" if that is what you call your work.

Jerry

John_Deutzman read my blog
Apr 29, 2008 | 6:58 PM

Jerry,

I've been doing this 26 years and have an outstanding reputation for integrity. Please find one fact wrong in my story or my blog. If there is ever a 990 that makes sense, it still will not have enough money going to Parkison's to remotely qualify as a good charity by any standards used by any organization that rates charities.
It's hard for all of you in that little click out there to look at the facts look at the numbers and realize that for at least two and a half years...no money went to Parkinson's this is not based on 990's this is based on checks the board produced for us...The last check written to anything the remotely resembled research was wriiten in late November of 2005. It was only until April 11th of 2008 that another check was produced for 10k going to the Unity Walk and then another 8k last weekned. Those two checks were written after the heat was on and serious questions were being asked.
In the meantime perhaps you guys should figure out how an accountant, an experienced board and people so dedicated in the fight against Parkinson's could allow this to go on for so long.

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John_Deutzman

John Deutzman, a New York native, has been working as a reporter at Fox 5 News since September of 2001. John has won 12 career Emmys and has received 28 Emmy nominations. He's known for his aggressive and at times humorous style when catching bad guys and exposing scams for the Fox 5 Investigative Unit. John's stories have resulted in arrests, businesses being shut down and dozens victims getting their money back from scam artists. Before moving back to New York, John spent 11 years in Miami, first as a sports reporter but when hurricane Andrew struck, John was thrown into news reporting and evenutally made the full time switch to news. John also had stints in Binghamton,New York and Springfield,Massachusetts
. A native of Smithtown,Long Island, John is an 11th-generation Long Islander. He describes himself as a 50/50 mix of his two grandfathers. One grandfather was a journalist who owned the town paper, the "Smithtown Messenger" and the other was one of the first cops in town who had a reputation for being tough and crazy but fair.

Member Since: 6/1/2006