Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance

I believe I've found a business that cells itself a charity,

Customer Question
files 990 exemption forms, but...
I believe I've found a business that cells itself a charity, files 990 exemption forms, but is not a charity at all. It's been active 8 years or so, and I'd like to find out if the issues I find suspicious on this charity's 990 forms are as significant as I believe they are.
First, this charity claims to help children with disabilities; they state 50 children a year come to their facilities and get therapy. They claim the kids are referred to them by doctors, therapists, or local public organizations that are for disables children. I called the organizations who refer parents to places for therapy; they'd never heard of this one, despite its proximity, but knew of the other three rehabs which offer identical help, but are much further away. I also called every pediatrician and doctor that specializes in areas that a disabled child might see; no one had heard of it.
The board of directors was only 4 people, all related through marriage, but using maiden names on the 990 so the relation isn't obvious. The fourth person is their tax Pearson, while address doesn't exist; it's in the middle of a national park.
For 2 consecutive years, only two employees are listed. They are both therapists. But on the line on the 990 asking how much was paid out to employees over the year, $600 was entered.
The 990 stated that $22,000 was spent for someone to make and upkeep a web page about the charity and it's facilities. The charity had no web site, nor had they ever had a web site. If someone gave a friend the name or description of this charity, but couldn't remember the phone number, the friend could look everywhere- phone book, internet, therapy centers, and never find it. If eventually they did get it from a 990, they'd get a line long disconnected.
The other purchases listed on the 990 were few, expensive, and all of the same thing. It was an item the charity would need, albeit the charity wouldn't need the highest echelon of quality these purchases represented; the purchases listed was a luxury item that could lend great enjoyment as something privately owned. The similar charities list of purchases gave the impression of a working institution; everything from office supplies to equipment used at such a place.
There is nothing on the internet about them; despite 8 years of offering their therapy, the only mention one can find of this charity is on sites offering public 990 forms, or
on a few of the sites that pick up public phone numbers and business names from the white pages or data bank, then the site makes a generic page for the business. These sites hope the business will then come to the site, and use the page, filling it up with advertisement, information on what, where, and why the business exists. These sites especially offer a way for the business / charity to tell the world how to reach them.
this charity has never been in the local papers, nor on local TV, nor news.
The charity lists only one phone number, but it hasn't worked for two years.
The charity shows it makes $80.000 to $200,000 in fund raisers and donations. There haven't been any fund raisers thrown for this place. I looked at the 990 forms of the other charities offering very similar help to children; those charities list each fundraiser thrown, what and when it was, and the amount each fundraiser raised. Any other type of money drive is also similarly listed, described, and the amount of money received is noted. All the similar charities did this.
The charity I find suspicious wrote one word; donations. Then the amount, which ran from 80K to 200K each year.
I called one of the board members who served for the first several years, but then wasn't listed as board member anymore. The 990 stated this person spent 3-4 hours a month in meetings. The interesting thing about this person is that they live next door to the charity. The charity sits on some of the most expensive land in the state. It's a huge parcel; the board member/ neighbor has the lot next to this charity, and was an executive of a company that gives severance packages in the high 7 figures. This neighbors portfolio in stock or it may have been charitable donations is public, and hundreds of items long. So, this is an extremely wealthy person. The 1%, you could call them! and be right. When I calked them, after hearing a hello and that my call concerned the charity in question, they became extremely agitated, and said their relationship,with the charity was O V E R; the attempt to put distance between the charity and themselves couldn't have been clearer.
I didn't attempt any more questions. My interpretation is that this person found out the extent of the charity next door, and realized that their involvement with it could bring big trouble if and when the authorities discovered the truth.
Does all this make you suspicious?
Submitted: 2 years ago.Category: Finance
Show More
Show Less
Ask Your Own Finance Question
Answered in 6 hours by:
6/28/2015
Financial Professional: Shawn P Adamo, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions. replied 2 years ago
Shawn P Adamo
Shawn P Adamo, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Finance
Satisfied Customers: 2,884
Experience: CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Verified

Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. CPA,PFS,QFP,GMMA.

Suspicious? Everything is suspicious.

a non-profit or a not for profit?

Is it a 501(C)3?

I'll offer you a call because it seems to me you want to keep the identity private.

I'm on the board of a non-profit (a real one).

There are ways to determine even more about this "charity". We can discuss that on the telephone discussion. All you need do is accept the offer. If not we can text back and forth.

Ask Your Own Finance Question
Customer reply replied 2 years ago
I'm sorry I took so long to reply; My father's health suddenly took a turn for the worse and my care taking duties became overwhelming. I would love to speak with you. I believe this couple has been living a very very high life, not only defrauding the government , but by pressing fabricated criminal charges against people who are becoming close to this farce via friendship with innocent relatives. No one is allowed to visit this huge piece of land upon which children are supposedly being helped by the dozens, daily. A close friend of mine had been invited several times to this "magical place" by a close relative of the owners. He had just turned 65, and a seven year friendship had brought my friend and thus mildly schizophrenic relative into a kind and caring friendship. I believe this was the first friend the relative of the "charity owners" had ever had. I'd commented for years about this fellow, who was almost totally ignored by his charity driven siblings. When the charity owners discovered the close, beneficial friendship, they at first tried to tell the police my friend was stealing from the sibling. However not one cent was ever stolen; in fact this sibling was constantly without staples like soap and food. Eventually the millionaire. Charity owners convinced the police that elder abuse was occurring, because on two occasions my friend used the siblings. are car to due grocery shopping for him. My friend paid for everything. Including fixing up the sad condo where the sibling lived. The charity owners literally drugged their sibling, and as they control wether he has his rent paid, groceries delivered, or his auto paid, the sibling said nothing while his family claimed elder abuser. It was seeing how this man lived that made me check into the charity. I didn't believe that anyone who so neglected a blood sibling could possibly have the character interested in helping others for free. I was right. I've found out so many facts that point to a huge charade; every piece of evidence produced by thus enterprise is in fact something totally different than what it purports. These people were quite. Rich before the charity- they have held on to that wealth through the deception of a non profit for helping disadvantaged children overcome. Handicaps. Every tax break possible was afforded to this couple. Comparing their 990 forms to charities doing exactly the same thing expose the fact that none of their actions are as described. Simply money pouring in from unnamed sources then disappearing on purchases that do not exist, and are never used. Right now I'm re- joining justansr, to use a better email and new credit card. My subscription may have lapsed over the last month or two. My new account will be under the email***@******.*** and my phone is(###) ###-####or cell(###) ###-#### ***** Nicole. I hope u receive thus; I've got to get subscribed up again. Thank you.
Ask Shawn P Adamo Your Own Question
Shawn P Adamo
Shawn P Adamo
Shawn P Adamo, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Finance
Satisfied Customers: 2,884
2,884 Satisfied Customers
Experience: CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.

Shawn P Adamo is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,920 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I have a question related to how my taxes will be calculated
Hello. I have a question related to how my taxes will be calculated for my job overseas. For 2017, I don't qualify for the physical presence test as I was home for six weeks (42 days). Given this fact… read more
taxmanrog
taxmanrog
Master\u0027s Degree
767 satisfied customers
Robin, question on filing taxes. My father in law passed
Robin, question on filing taxes. My father in law passed away about 4 years ago. He and his sister had a farm, and his 1/2 was willed to his 3 children one of which is my wife. My wife and I have take… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
How to show in accounting books for checks written to
How to show in accounting books for checks written to oneself who an officer of the company does not run pay toll but take K1 at the year end of his own S corporation… read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
60 satisfied customers
I have a PTIN only (so i am not an accountant or an Enrolled
Hi! I have a PTIN only (so i am not an accountant or an Enrolled Agent). Question:Can I prepare unlimited tax returns per year?or there is a limit in my case(higher designations are needes to be able … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
I would like to know what the value would now be of an
I would like to know what the value would now be of an annuity account that was opened in 2008 with an initial deposit of $78,835.00 and the only withdrawals from this account were the mandatory semi-… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Have some questions about my business for the coming tax
Have some questions about my business for the coming tax year as far as payroll vs. no payroll (because of the new LLC 20% tax rate) and retirement … read more
Carter McBride
Carter McBride
LLM
233 satisfied customers
I am single, divorced and own my home. 2017 my daughter and
I am single, divorced and own my home. 2017 my daughter and her family, 2 adults 3 children have lived with me while they build their home. They are custom home builders and file their own taxes. My q… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
I run a Delaware single owner LLC operating out of Arizona.
I run a Delaware single owner LLC operating out of Arizona. We earn hundreds of thousands annually. Given the recent reform in tax code, would we save a lot of money converting to an S Corp?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
Is the following link a Trustworthy app to invest in mutual
Is the following link a Trustworthy app to invest in mutual funds? https://robinhood.com/referral/ethanc123/?gclid=Cj0KCQiA-ebSBRC8ARIsAGuxJIrZH4jkVfJSxc_GvpqlOszZq2FrCQErIQv7hqqZLO1MuuQCFpH3fvAaAhB2E… read more
Carter McBride
Carter McBride
LLM
233 satisfied customers
I own 2 homes in Hammond in. Free and clear worth around
I own 2 homes in Hammond in. Free and clear worth around 150k, total. Right now they net around 24k - expenses (8k) year, haven't filed income taxes in while on them or ref job (lost 2 years ago) cred… read more
taxmanrog
taxmanrog
Master\u0027s Degree
767 satisfied customers
I started and run a non-profit youth swim team. I have the
Hello, I started and run a non-profit youth swim team. I have the parents on the team serving as the board of directors, along with myself as the president/director. I'm also the coach and only one wo… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,777 satisfied customers
I am on a non-immigrant visa and I was out of the US for
HiI am on a non-immigrant visa and I was out of the US for around 4 months in 2017. As I was out of US, I didn't have any health insurance. I am preparing my tax filing now and I want to specify the m… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am trying to add an asset to my balance sheet, and it is a
I am trying to add an asset to my balance sheet, and it is a capital lease I am trying to figure out how to show it … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I loaned $30,000 to my son to buy a truck, 11 years ago, for
I loaned $30,000 to my son to buy a truck, 11 years ago, for his business. H e had been ill and that is why it took so long to pay it back. It is now paid I full. Can I legally forgive the interest on… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I got a bonus amount and I would like to explore how I can
I got a bonus amount and I would like to explore how I can reduce my witholdings and subsequently the impact upon my tax return… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Second opinion] I have a business corporation. If I want to
Second opinion] I have a business corporation. If I want to take out some money from the profit and write myself a check to deposit into my personal account, will I have to include that as schedule C … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
In 2017 my grandmother transferred the deed to a property to
In 2017 my grandmother transferred the deed to a property to me for $0 in the state of North Carolina. I reside full-time in California. Do I need to file a North Carolina income tax form or pay anyth… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,777 satisfied customers
If I pay 100,000 for land and then about 45000 in various
If I pay 100,000 for land and then about 45000 in various costs but have deducted thing like Loan interest, insurance, Taxes of say 40,000. What is my basis 145,000 or 145,000 minus the deducted expen… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x