When Charities Suck

Photo credit: New York Post

With P.T. Barnum’s adage in mind “There’s a sucker born every day,” it’s fairly sad that nobody had ever confronted P.T. for doing the sucking. Too often, we hear of non-profit organizations caught profiting – their controllers sucking away the funds that should be put forth to help fix what they were intended to fix.

We’ve heard of corruption running through such organizations as the Shiloh International Ministries, who spent over 96% of the money they raised on management and fundraising, when their donors thought they were giving their money to help veterans, needy children, and the homeless in California. In South Carolina, Big Hope was founded to raise money for orphans, sick children, and needy families, though it was found to have less than 9% of the $3.24 million they raised actually applied to the cause. Likewise, The Foundation for American Veterans, Inc. in West Bloomfield, Michigan also spent less than 9% of $4.1 million on promoting social and recreational welfare for current and past U.S. Armed Forces members, dependents, orphans, widows, and widowers. In the most recent case, suckers in New York were taken for a ride by the United Homeless Organization.

Notorious on the NYC streets for their water jugs resting on tables draped in red cloths, and with the collectors adorned in red aprons, the nonprofit organization worked for decades gathering funds as a charity for the homeless – or so a mass of suckers were led to believe. Actually, those who dropped their change into the giant plastic vessels were only giving money to the guy in the apron, who paid a $15-$25 flat-fee for the use of that apron, the tablecloth, and the water bottle owned by UHO.

Back in the UHO office, Stephen Riley and Myra Walker, the founder and director respectively, were using the collections for personal living and travel expenses, and Riley was alleged to have four company vehicles transferred to his name as well. A June 18th ruling by Judge Barbara R. Kapnick has left Riley and Walker banned from working within a non-profit framework again, and their organization has been shut down. All UHO assets have been frozen, and a future hearing will determine the amount of damages and restitution owed to the public by the defendants.

“The Court’s judgment will permanently prevent UHO, Riley and Walker from exploiting the trust and good will of New Yorkers and visitors to New York City,” said Attorney General Andrew Cuomo, who also added, “This organization’s bad behavior should not undermine the public’s willingness to donate to legitimate charities.”

What’s most troubling is not that the spare change given by the public has vanished, but that there were many who were counting on those funds for basic needs, as it’s always the people these charities are built for that are the most damaged by the corruption and greed practiced by the leaders. Though in this case the homeless fall right in the middle of the public suckers, and Riley and Walker who just suck.