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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jmax123
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jmax123
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John_Deutzman
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jmax123
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walter19672006
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jmax123
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John_Deutzman
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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