Posts Tagged money
Weinberg foundation to give out $100 million each of the next two years
The Harry and Jeanette Weinberg Foundation announced Wednesday that it would give out more than $200 million over the next two years, including some $21 million in new grants over that time period.
The Baltimore-based foundation, which traditionally gives more money to Jewish causes than any other foundation does, will also start accepting letters of inquiry on Aug. 3 from grant seekers who were not previously receiving money from the foundation.
This ends a period dating back to last November when the foundation said that it would not accept any new letters of inquiry.
But the foundation’s giving is still down, according to its president, Rachel Monroe.
Last year, Weinberg gave out $106 million. Over the next two years it will average $100 million. If the foundation had stayed on the growth pace it set before the recession, its assets would have been worth $2.5 billion and it would have given out $125 million in 2009.
Over the next two years it will have only $21 million available for new grantees. The other $179 million is designated for pre-existing multi-year grants.
The foundation said that it would honor all pre-existing grants.
“The cut is really related to shrinkage in the asset base due to the overall asset value,” Monroe told The Fundermentalist in an e-mail Tuesday. “That said, we are only down 25%, versus many other foundations which unfortunately are closer to 40% down. How did we do this? 40% of the Foundation’s asset base is diversified with active real estate holdings in the State of Hawaii.”
http://blogs.jta.org/philanthropy/article/2009/07/15/1006567/weinberg-foundation-to-give-out-100-million-each-of-the-next-two-years
brought by Moishe Alexander, CFC canadian funding corp CEO
Torontonians bike for charity in Israel
After five grueling days of riding across desert terrain in support of Alyn Hospital, Ruth Ekstein triumphantly entered Eilat on her mountain bike with 424 other riders amidst a cheering crowd. “It was the most exhilarating thing I’ve ever done,” says the long-time UJA Federation volunteer. “We didn’t know if we should laugh or cry or yell and I think we did a little of all three.”
One of 50 Torontonians who completed this year’s Wheels of Love charity ride, in which participants biked from Jerusalem to Eilat to raise money for Israel’s only comprehensive pediatric and adolescent rehabilitation centre, Ekstein describes the experience with unbridled enthusiasm. “The scenery was spectacular, the weather was amazing, and there were 425 riders from ten countries so the opportunity to meet a bunch of crazy like-minded people was fantastic. I’d go again in a heartbeat.”
Earl Haltrecht, an orthodontist from Toronto and co-chair of UJA Federation’s Partners Circle raised US $5,500 on the charity ride. “I love riding, I love Israel, and it’s a fabulous cause, so I’d say it was win-win-win.”
Alyn Hospital, a world leader in rehabilitation of children with a broad range of physical disabilities, is the only facility of its kind in Israel.
“Any time there are children involved - whether it’s a congenital deformity or accident victims or victims of terror, your heart opens up and you’ll do anything for them,” says Haltrecht.
Although Ekstein has been supporting the Alyn ride for many years, this was the first year that the occupational therapist from Toronto put her feet where her money is.
From October 29 to November 2, she averaged 100 off-road kilometers each day, going “where roads don’t go, which was really exceptional,” and raising almost US $7,000 for Alyn, which is well on its way to reaching its $2.5 million goal for this year’s ride.
Ekstein first got involved with Wheels of Love five years ago, when her best friend participated in the ride and asked her to help fundraise. At the time, her husband - Alan Lechem - was co-chair of the Israel Action Committee at Beit Rayim Synagogue, and the synagogue took on fundraising for Alyn.
“My husband decided,‘why just fundraise when I can also ride,’ so in 2004 he went with four members of our synagogue and then last year he went again. But this year I and another woman from our synagogue said,‘well if the boys can do it, we can too,’so we went this year and my husband stayed home with the kids.”
http://www.jewishtoronto.com/page.aspx?id=6710
reviewed by Moishe Alexander, CFC CEO
Charity loses status over tax-shelter scam CRA says area group took in $2.8 million, but spent just $282,000
The Canada Revenue Agency has stripped an Ottawa-area charity of its charitable status after a damning two-year audit showed it was a front for a tax shelter scam offering big receipts for small donations.
The CRA ruling found that Healing and Assistance Not Dependence Canada expended a “proportionally negligible amount” of its income on charitable activities, making it ineligible to grant tax receipts.
The law says a charity must act exclusively for a charitable purpose to give tax receipts.
The charity purports to “encourage and assist and serve alcoholics, chemically dependent persons and their families, friends and associates primarily, but not exclusively within the Jewish community.” It has no website and no listing in the Yellow Pages.
Tax shelters allow people to avoid paying income tax. Tax-free savings accounts and RRSPs are examples of legal tax shelters.
Illegal, so-called aggressive shelters promise inflated tax receipts for nominal donations.
A company might ask you for a donation of $100 and promise you a tax receipt for $1,000. The company might claim your money is buying bulk supplies that,
if purchased individually, would be worth $1,000.
Aggressive tax shelters essentially sell receipts, pocketing the donations and bilking the federal government out of millions.
CRA spokeswoman Caitline Workman said tax receipts can be revoked if the government believes the donor should have realized the return was too good to be true, however, she would not say if the agency would revoke receipts donated to Healing and Assistance Not Dependence Canada.
The CRA audit, which took place between Sept. 1, 2006, and Aug. 31, 2008, showed the charity received almost $2.8 million from the Canadian International Aid Program, a registered tax shelter fronted by the Canadian Organization for International Philanthropy (COIP). Healing and Assistance Not Dependence Canada transferred 70 per cent of the money it received to other participants in the scheme, keeping $900,000 for itself. Of this, only $282,000 was devoted to charitable programs.
Even this figure is doubtful. Healing and Assistance Not Dependence Canada claimed to contract out its treatment services to American and Swiss treatment centres, but the CRA found there were no descriptions of how programs were to be delivered on the charity’s behalf.
The auditor wrote “the charity did not, in fact, deliver any of the charitable addiction counselling, treatment, or education programs for which it was ostensibly raising funds.
The CRA also found that 79 per cent of the charity’s income was spent on fundraising, which far exceeds the “reasonable” amount proscribed by law.
The true purpose of the charity, said the CRA, was to receive and transfer donations on behalf of the tax shelter program.
The money the charity funnelled out landed in questionable pockets. Almost $2 million was transferred to the Orion Foundation and PanAggregate Financial Corporation. Orion was the subject of an investigation by the Toronto Star, which found that its head, James Arion (who has gone by many other names), was giving $2,000 tax receipts for $1,000 donations. The CRA is challenging many of those receipts.
The Star showed the Orion Foundation is also connected to the Canadian International Aid Program and COIP, which claims to provide AIDS drugs to infected Africans.
No one from Orion, PanAggregate or COIP would provide comment to the Citizen.
http://www.ottawacitizen.com/business/fp/Charity+loses+status+over+shelter+scam/1675746/story.html
Reviewed by Moishe Alexander