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ABC 7's I-Team Investigates: Non-profit Money
posted 05/19/08 6:02 pm
ABC 7 News - ABC 7's I-Team Investigates: Non-profit Money
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-WJLA SCRIPT-

ANCHOR:
NOW AN I-TEAM INVESTIGATION...IN OUR TROUBLED ECONOMY, WHAT KINDS OF BUSINESSES ARE THRIVING? NON-PROFITS! JUST LAST YEAR THE IRS APPROVED ANOTHER 68-THOUSAND.

ROBERTA BASKIN:
ONE OF THE MOST POPULAR NON-PROFIT CATEGORIES CONCERNS BREAST CANCER. THERE ARE MORE THAN 17-HUNDRED OF THEM. THE I-TEAM STUDIED IRS FORMS FILED BY NON-PROFITS AND A MARYLAND CHARITY STOOD OUT…

STORY:



TRACK1: This is the headquarters of the American Breast Cancer Foundation. Its stated mission is to provide funds for research and education for breast cancer patients like Daniela Branzaforte.

SOT: Daniela: When you see breast cancer foundation and American together, I guess it pushes all the buttons.

TRACK 2: And the American Breast Cancer Foundation does push those buttons. It raised fifteen million dollars for the cause in just the last year. But how much of that money actually goes to research?

According to Charitywatch.org: 
Out of every dollar raised, a mere 3 and a half cents is actually spent on cancer research. And 79 cents of every dollar donated goes to fund-raising, asking for more money.

SOT [Phyllis]: I think our work is very successful and I'm very proud of the work we do.

TRACK 3: Phyllis Wolf is the President of the non-profit American Breast Cancer Foundation. It's non-profit, but someone's making money here. And that is Phyllis Wolf's son Joseph. He owns a FOR PROFIT company oddly called Non-Profit Promotions. According to IRS forms Phyllis Wolf paid her son 8 million dollars in the last 2 years to raise money for her foundation.

SOT [Phyllis]: What's your son's salary? 

I don't know those answers. He's a vendor. I don't know those answers. 

You don't' know how much your son makes? 

No I don't. Just like any other vendor. He's a vendor. 

He's also your son. 

We don't discuss that.

TRACK 4: Apparently Joseph Wolf doesn't want to discuss that either. We called and stopped by the office… but no one ever responded.

TRACK 5: Phyllis Wolf defends her son's fund-raising costs because he includes information pamphlets in his mailings. But that's not enough for Charitywatch.org which evaluates non-profits.

It points out reputable non profits like the Breast Cancer Research Foundation which gets an A rating for giving 87% of its budget to medical research.

But for the similarly named American Breast Cancer Foundation gives an F.

SOT [Phyllis]: Did you know you got an F? 

No, I didn't know that.

SOT [Daniela]: …to know people are capitalizing on this is a horrible thought///you feel victimized twice. 

ROBERTA IN STUDIO:

THERE'S TALK IN CONGRESS, AS ALWAYS, TO TIGHTEN UP LOOPHOLES FOR NON-PROFITS. BUT IF YOU WANT TO KNOW IF YOUR CHARITABLE DOLLARS ARE GOING TO GOOD USE, LOG ON TO WJLA.COM/I-TEAM… WE HAVE LINKS TO CHARITY WATCHDOG GROUPS THAT CAN SHOW YOU THE BEST USE OF YOUR CHARITABLE DOLLARS.

Click here for more information.

 

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