CharityWatch In the News
From advice on giving in a crisis to expert analysis on complex charity finances, CharityWatch is a valuable resource for the media and general public alike. Here is a sampling of our many contributions to news stories.
"Borochoff [CharityWatch's President] said charities have an even higher standard to be seen as fair and 'above board' because of their status as a nonprofit."
The San Diego Union-Tribune, 01/23/2017
"'The fundraiser might be keeping 75 to 90 percent of the money,' says Borochoff of CharityWatch. Sometimes, he says, charities may end up paying fundraisers more than they take in, leaving the group with a loss."
Consumer Reports, 12/14/2016
"Just because a charity sends a gift, there's no obligation to donate and no need to feel guilty if you use the item — 'it's being done to manipulate you,' [CharityWatch's] Borochoff said."
Tampa Bay Times, 12/12/2016
"That swirl of cash, intense interest in supporting those returning from the wars, and a lack of long-established organizations to serve as models for best practices have conspired to create what...Daniel Borochoff, the president of CharityWatch, called a 'minefield' for potential donors [to veterans charities]."
The New York Times, 11/04/2016
"Over all, it seems that 'people don't understand charities,' Mr. Borochoff says. The differences that distinguish the institutions— in size, scope, and mission — seem lost on the public and many reporters."
- CharityWatch president on the vast differences between the Donald J. Trump Foundation and the Bill, Hillary & Chelsea Clinton Foundation
The Chronicle of Philanthropy, 09/29/2016
"The charity needs to make a good faith effort to be as accurate and clear in their solicitations or fundraising...Only if you read the fine print, do you see they have a big loophole, a big out."
- CharityWatch president on why Ronald McDonald House Charities should not use a fine print loophole to avoid giving away the dream house in its "Dream House Raffle"
The San Diego Union-Tribune, 08/31/2016
"'It's a public charity, and you have a board of directors with one independent board member,' he said. 'That means that he [Dwayne Wade] and his sister can make all the decisions for a public charity, so it would be better to broaden the board to represent the public's interest.'"
- Daniel Borochoff on governance concerns at Wade's World Foundation, founded by NBA star, Dwayne Wade
Chicago Tribune, 07/24/2016
"Very few donors would agree to that high of a fundraising cost. You're talking about other people's money. You're ripping off the donating public...(and) when it's a hot button issue like veterans, they'll give."
- Mr. Borochoff on Veterans Assistance Foundation's 83% fundraising cost.
The Capital Times, 07/12/2016
"'Our charitable resources are getting locked away,' Borochoff said. 'Particularly with the way the economy is, where a portion of the population is really struggling, really suffering and in dire need of charitable aid, it's problematic for us to be taking $15 billion off the table for later.'"
- CharityWatch's president, Daniel Borochoff on the huge amount of charitable dollars that are annually being placed in donor-advised funds for use sometime in the future.
The Washington Post, 06/21/2016
"One of the charities that Donald Trump selected to receive a donation from his veterans' fundraiser [Foundation for American Veterans] with a rating of "F" from CharityWatch..."
-Article on the presidential candidate's questionable vetting of charities.
The Washington Post, 06/01/2016
"Livestrong officials have had to 'redesign their revenue generation based on what their programs are rather than Lance's celebrity,' said Daniel Borochoff, president of CharityWatch, a watchdog group."
- Mr. Borochoff on how a shrunken Livestrong survives and prospers after disassociating itself from its tainted founder, Lance Armstrong.
USA Today, 5/04/2016
"Groups that hold fundraisers for charities should distribute the funds to those charities as rapidly as possible. By not doing so it delays aid or assistance to people in need of help and increases the risk that these funds get diverted to something other than their intended use."
-Mr. Borochoff on the controversy surrounding what happened to millions of dollars that Donald Trump generated at his fundraiser for veterans charities.
The Daily Beast, 4/22/2016
"Daniel Borochoff, president of CharityWatch, a Chicago organization that monitors nonprofits, said he believes Wounded Warrrior Project began to operate more like a major business than a charity as it grew. 'The public are not OK with people in charities staying in five-star hotels...or spending on first-class travel,' he said."
The Wall Street Journal, 3/11/2016
"Sites like GoFundMe don't guarantee that everything is above-board," said Daniel Borochoff, president of CharityWatch. "We have limited charitable dollars and it's important that they not be wasted through fraudulent or well-intentioned but incompetent efforts."
- Mr. Borochoff on the pitfalls of utilizing crowd sourcing sites to donate to individuals who say they are helping with the Flint Michigan water crisis.
Detroit Free Press, 2/18/2016
“Even with those declines, the charity remains strong financially based on $92 million in reported assets, said Daniel Borochoff, founder of CharityWatch. ‘They have a lot of time to rebuild their reputation and regain donor and public support,’ Borochoff said. ‘They have significant reserves. People don't need to be panicky this group will be folding.’”
- Mr. Borochoff commenting on the unexpected resignation of LiveStrong's new CEO and the continued fall-off in revenue years after the Lance Armstrong doping scandal.
The Associated Press, 1/19/2016
“‘Often, donors want to get rid of their cars without hassle, get a tax-deduction and move on,’ Borochoff said. ‘This allows questionable actors to get involved because people aren’t being careful,’ he said.”
- Daniel Borochoff, president of CharityWatch, a nonprofit watchdog group, said that the car donation charity industry is particularly ripe for abuse because donors are often less thoughtful about where the proceeds from their cars end up than where their donated cash goes.
Los Angeles Times, 12/1/2015
“Daniel Borochoff, president of CharityWatch, said charities sold information as a form of fund-raising, which can be positive. By allowing a group to sell your contact information, you're in effect increasing the impact of your donation: ‘It's an important revenue stream for the charity.’
But, he said, charities should make their policies clear, so donors can make an informed decision. ‘It's very much a personal preference,’ he said.”
The New York Times, 12/1/2015
“‘It can get kind of funny,’ says Daniel Borochoff, president of CharityWatch. A charity might ‘say the fund-raising that interrupted your dinner is a program service because they ask you to pray for people who are suffering in the Sudan, or ask you to fly a flag and show you’re patriotic. Then they can magically turn the cost of that solicitation call into a program service.’”
Readers Digest, 12/2015
And once you are on their radar, charities typically will start spending marketing dollars to chase you for more donations.
"It's like you're teasing the charities. They think: 'They gave us a little; maybe if we ask, they'll give us a lot.'"
- CharityWatch president, Daniel Borochoff, on why it's better to give larger donations to a few charities rather than smaller gifts to lots of groups.
"If people read the fine print, they would probably not be that impressed with it ... People should be careful not to feel too good, because you're helping in a very miniscule way."
- CharityWatch president, Daniel Borochoff, commenting on how charity affinity credit cards may contribute a tiny portion of a transaction to charity.
Chicago Tribune, 11/09/2015
“If Jared really was interested in helping children through his foundation, he could have gotten more money... As with a lot of celebrities, the charity appears to be more about image-enhancement than charitable deeds.”
- CharityWatch president, Daniel Borochoff, commenting on how the now-scandalized Subway spokesman raised very little money toward his proclaimed goal of spending $2 million to fight childhood obesity.
USA Today, 8/23/2015
“‘I wish [Senator] Grassley would take this broader and not just be focusing on the Red Cross [with regard to Haiti] but focusing on all international aid and development groups and require they disclose who their grantees are … It’s basic information that donors ought to have access to.’”
- CharityWatch president, Daniel Borochoff, on the American Red Cross withholding information about their international grantees.
The Chronicle of Philanthropy, 7/24/2015
“‘They’ll itemize how much was spent on office supplies and then it’ll be $15m in unidentified stuff sent to Africa or the Pacific islands. Can’t you get more specific? Can’t you describe it?’”
- CharityWatch president, Daniel Borochoff, on the quality of charity self reported information.
The Guardian, 6/5/2015
“[CharityWatch president Daniel Borochoff] said if a charity does not have its financial statements audited, donors should be cautious. ‘People don’t look as closely at charities as they do public companies, ... can you imagine what would happen to a company’s stock if it didn’t get audited? But Charities can choose to do that.’”
“Be on the lookout for innocuous-sounding advice that comes with a fund-raising appeal. If a group advises you to buckle your seatbelt, check your breast for lumps, fly the flag on July 4 or pray for victims of a disaster, this could signal that the charity is disguising some of its fund-raising costs as ‘public education,’ … ‘we see such attempts all the time.’”
- CharityWatch president, Daniel Borochoff
The Wall Street Journal, 5/26/2015
“‘I’m glad to see our government regulators are putting a stop to these four outfits that for too long have been misleading the public and wasting millions of our charitable dollars ... This is a significant action, but it’s the tip of the iceberg. There are a lot of other problems like this out there. … I hope they continue to go after some of these questionable operators.’”
- CharityWatch president, Daniel Borochoff, on the FTC and State AG’s fraud suit against four cancer charities for bilking over $187 million from donors.
The Washington Post, 5/19/2015
“‘They have made some improvements, but there are still serious concerns … We don’t feel confident about this organization as a good target for donors.’”
- CharityWatch president, Daniel Borochoff, on Central Asia Institute’s continued “?” rating.
The Associated Press, 5/8/2015
“‘Spending just a little time on research can exponentially increase the good works accomplished by a donation.’”
- CharityWatch president, Daniel Borochoff, on giving wisely.
The Wall Street Journal, 5/8/2015
“‘Regardless of whether you like [Hillary Clinton's] politics or not, this is a good charity.’”
- CharityWatch president, Daniel Borochoff, on the controversy surrounding Hillary Clinton and the Clinton Foundation
The Washington Post, 4/27/2015
“‘We believe groups shouldn't raise significantly more money than what they need because we have limited charitable resources in this country, and that's money that could be spent on other needs,’ said Daniel Borochoff, president of CharityWatch, which issued the flunking grade [to Navy SEAL Foundation for stockpiling over 5 years worth of its annual budget].”
The Virginian-Pilot, 4/9/2015
“Daniel Borochoff, president of the nonprofit watchdog CharityWatch, said that generally it's not a good idea for nonprofit leaders to hire family members. 'Internal controls break down when there's collusion,' Borochoff said, 'and family members are more likely to collude beacuse they already have those close personal relationships.'"
Pittsburgh Tribune-Review, 3/14/2015
“‘It might be a lot better to sell a car yourself and donate the proceeds to charity,’ ... But if you don't want the hassle and prefer using a car donation agency, he said, you should demand to know what all the processing and overhead costs are and how much of the sale price will be forwarded to the chosen charity.”
- CharityWatch president, Daniel Borochoff, on donating cars to charity
Los Angeles Times, 2/28/2015
“‘Rotten charities that waste money...[say] 'Don't look at overhead. It's not important. It does't matter,'" Borochoff said. 'But it does matter, because it's really hard for a charity to accomplish much if so little of its proceeds are going in the direction of programs and services.'"
- CharityWatch president, Daniel Borochoff, on the importance of looking at overhead
Boston Globe, 1/15/2015
“CharityWatch delves a bit deeper into an organization's fundraising and other accounting practices, including how much is spent to raise each $100 of funds that are collected.”
“‘Some of these groups don't really do anything,’… ‘They just send out a bunch of mailings or make calls telling us that veterans have needs and they give this false indication that they're providing substantial aid.’… ‘The donors don't understand what's going on and the wool is being pulled over their eyes[.]’”
- CharityWatch president, Daniel Borochoff, on the disconnect between what some veteran charities actually do and what they say they do in their solicitations
Darien News (Connecticut), 6/16/2014
“[C]harities generally should not be sitting on assets of more than three times their annual budget. ‘Why are they sitting on this money?’…‘Why isn’t that being given out in scholarships?’”
- CharityWatch president, Daniel Borochoff, on a scholarship charity that annually gives out less than 3% of its assets
The Associated Press, 8/19/2014
“‘They’re not spending money the way most donors would want it spent, which is for programs benefiting veterans. They’re spending it on direct mail and other solicitations.’”
- CharityWatch president, Daniel Borochoff, on the Veterans of Foreign Wars’ poor fundraising practices
The Kansas City Star, 8/24/2014
“But charities should be aware that companies are making profits, in part, based on appealing to runners' philanthropic sensibilities, … ‘What nonprofits have to worry about is if they're getting a fair shake and not getting their pocket picked for the use of their name[.]’”
- CharityWatch president, Daniel Borochoff, on misconceptions about charity races
Times Union, 10/13/2014
“Daniel Borochoff ... wished [New York Attorney General] Mr. Schneiderman had put the charity out of business or further penalized the board members who failed to exercise proper oversight. But he praised the settlement for helping ‘to make the public aware of what goes on behind the scenes.’”
- CharityWatch president, Daniel Borochoff, on the $25 million settlement against fundraisers for the Disabled Veterans National Foundation, who allegedly misled donors and retained 90% of donations
The Chronicles of Philanthropy, 7/13/2014
“‘People assume that these platforms scrutinize each post. When in reality, these platforms are just pipelines for people who want to perpetuate a scam[.]’”
- CharityWatch president, Daniel Borochoff, on why one should not necessarily trust a viral online campaign just because it is conducted on a well known social networking site or utilizes a well known payment processor
The Guardian, 7/15/2014
“‘Daystar needs to tell people that only about 5 percent of their contributions are going towards hospitals, churches, needy individuals,’… ‘It would be a lot easier to sort all of this out if Daystar filed a public disclosure document with the IRS like the secular charities,’ … ‘If you want to make a contribution to your father's care facility or your kids' university and that's out there and open for anybody to ask about[,] [i]t brings a lot of accountability that wouldn't be there otherwise.’”
- CharityWatch president, Daniel Borochoff, commenting that a religious group is not legally required to publicly disclose its finances – even if it is contributing to facilities that benefit the family members of its officers
“[T]he groups should find better ways to raise money than using expensive ‘cold call’ telemarketing, such as seeking grants or soliciting from the police officers, whom the organizations benefit. Borochoff says that groups that allow most of their donations to go to professional fundraisers hurt all nonprofits because there are only so many charitable donations to go around.
“‘If they can’t raise money reasonably, they should stop doing it and stop wasting our charitable dollars[.]’”
- CharityWatch president, Daniel Borochoff, on poor fundraising practices of police and fire charities
Consumer Reports, 11/13/2014
“In its December report, CharityWatch’s president Daniel Borochoff ran down the latest scams ensnaring those wanting to help veterans, including crowdfunding pitches on Craigslist and Indiegogo for maimed warriors who don’t actually exist, and skuzzy look-alike charities that divert funds away from the real thing.”
Barron’s Penta 1/4/13
“As a consumer, you want to look at the price. [...] To pay a lot more for the charitable wine doesn’t make sense. You can buy the best product at the best price, make a charitable donation and get the tax deduction yourself.”
–Mr. Borochoff on buying products that purport to help charitable causes
The Wall Street Journal, 11/15/13
“You have one group that gets an A plus, the Breast Cancer Research Foundation, and another group that gets an F, the Breast Cancer Relief Foundation. There are many breast cancer charities that do very little if anything to help women who are suffering from breast cancer. What they do a lot of is send out a lot of solicitations.”
–CharityWatch President, Daniel Borochoff, on giving to breast cancer charities
WTOP Washington DC Radio, 10/16/13
“People ought to know upfront what portion of their contribution is going to wind up helping the charity. […] They shouldn’t be pulling the wool over the public’s eyes.”
–Mr. Borochoff on the practices of for-profit street solicitors
Chicago Tribune 9/4/13
“It’s quite amazing how we pretend to have accountability and disclosure when in so many places, what you really would want to know – the main points – are hidden.”
–Mr. Borochoff on how charities can hide the name of the organizations that receive their international grants
The Jewish Daily Forward 4/12/13
“You don’t have to be a Bobby Thompson to take advantage of the American public’s generosity with regard to our veterans. [...] Most people feel awful about what happens to veterans and want to help. But they don’t take the extra step of doing their homework and looking at what’s really happening. [...] Bobby Thompson took advantage of that to the max.”
–Mr. Borochoff on Guilty verdict against former CEO of U.S. Navy Veterans Association and CharityWatch Hall of Shame Member
Cleveland Plain Dealer 11/4/13
“If you’re a big-time athlete, you’ve got the mansion, you’ve got the model girlfriend, what other notch can you have on your belt? Well, having your own charity. [...] You’re in a position to raise some very significant money, and if they don’t, it does make one question their sincerity or their motivation for their cause.”
–Mr. Borochoff on celebrity athlete charities
“Philantropy has a grand history of turning bad money into good money. Charities have always taken money from tainted or corrupt individuals. People don't like the idea of the lottery, but they like it when it raises money for schools.”
–Mr. Borochoff taking the long view on why donors should not reject LiveStrong Foundation (the charity founded by Lance Armstrong) because much of its money was raised through its connection with the confessed bike-racing doper, Lance Armstrong
The Star-Ledger 1/20/13
“What would happen if donors learned that instead of giving money to treat cholera or build shelters, it's going to build a hotel?”
–CharityWatch President Daniel Borochoff commenting on the Red Cross proposal to use Haiti disaster funds to build a hotel/conference center in Port-au-Prince
The Associated Press, 3/26/2012
"Donors should be skeptical of charities that are dominated by members of the same family, particularly if some of them are on the charity's board. Family members can easily collude."
USA Today, 1/2/2012
“'You hate to see the organization slowly bleed away its staffing and its talent.' Although Komen remains a leader in breast cancer fund-raising, 'they may very well need to get a new board and a new chief executive.'"
–Mr. Borochoff in response to the resignation of more officials from Susan G. Komen for the Cure after the controversy around the funding of Planned Parenthood
The New York Times, 3/21/2012
“Up to $2 billion is raised in the name of veterans in this country and it's so sad that a great deal of it's wasted. Hundreds of millions of dollars of our charitable dollars intended to help veterans [are] being squandered and wasted by opportunists and by individuals and companies who see it as a profit-making opportunity.”
“Current IRS rules allow charities to hide what they pay their executives. There's a loophole that some of them are using to avoid transparency.”
–Mr. Borochoff on nonprofit organizations shielding executive compensation from the public by paying wages indirectly through for-profit companies
Chicago Tribune, 8/2/2012
“My advice for Lance Armstrong would be for him to step away from being the public face of the charity because of the credibility and trust problem... He's one of sixteen board members. It probably would be better if he stepped down from his board position.”
–Mr. Borochoff offered this advice to Lance Armstrong after the U.S. Anti-Doping Agency issued a report explaining why it charged the cyclist with taking performance enhancing drugs and stripped him of his seven Tour de France titles -- one week before Mr. Armstrong stepped down from his chairmanship with Livestrong Foundation
The Associated Press Video, 10/11/2012
“To do the greatest good, the money needs to be distributed through an agency experienced at evaluating victims' needs...That process may seem demeaning to victims -- but it sometimes is necessary to avoid misspending funds.”
–Mr. Borochoff on the importance of having a nonprofit organization determine the umet financial needs of victims from the Colorado movie theater mass shooting before the bulk of the money donated to a $5.2 million victims compensation fund is given out
The Washington Post, 9/13/2012
"It's disappointing. You would hope that [Central Asia Institute] would be spending a lot more on the schools in Pakistan than they would on book-related costs. Why doesn't Mr. Mortenson spend his own money on the book-related costs? He's the one getting the revenues."
–CharityWatch President Daniel Borochoff exposes financial improprieties at Three Cups of Tea author Greg Mortenson's charity, Central Asia Institute
60 Minutes, 4/17/2011
"Unless a charity is willing to disclose what their goods are and how they value them, donors should ignore those numbers because there is so much abuse going on."
–Mr. Borochoff advises donors to disregard charities' value estimates of donated goods because they are often intentionally misleading
The Chronicle of Philanthropy, 9/18/2011
“A lot of donors assume that if a charity files with the IRS then that means the charity is legitimate. But that doesn't mean someone has rigorously checked out the charity and determined your donation will be spent they way you intend."
–CharityWatch Analyst Laurie Styron
Huffington Post, 7/27/2011
“It smells. When they enrich the boss' wife, they enrich the boss. Groups that don't pay taxes must provide a public benefit, not a private benefit, and the payments raise the question of whether that mission is being fulfilled."
–Mr. Borochoff commenting on millions of dollars in payments by NYC-based Educational Housing Services to a company owned by the president's wife
New York Daily News, 2/13/2011
“Hospital CEOs, including those at children's hospitals, are among the most lavishly compensated executives in the nonprofit field... If hospital CEO compensation were more in line with other large nonprofits then there could be more funding for community benefits such as free or discounted health care or important medical research."
Kaiser Health News/Sacramento Bee, 9/24/2011
“If people knew what is going on they wouldn't donate. The donating public is being ripped off... We cannot afford to waste American charity money by spending it on fundraising."
–Mr. Borochoff responds to the proliferation of veterans charities which spend far more money on fundraising than veterans
Scripps Newspapers, 2/16/2011
“It's almost like you're teasing charities. Once you signal to a charity that you're interested, they're going to start hitting on you with a lot of appeals."
–Mr. Borochoff explains why giving small donations to several charities can lead to a mailbox crowded with solicitations
Philadelphia Inquirer, 2/17/2011
“The point of charity is to address need. Japan is not making desperate pleas for aid, and charities aren't going to do rebuilding. That's going to be government and private insurance. So people need to balance [their giving to Japan] with the problems in the rest of the world, even in our own country which has been hit by the recession."
–Mr. Borochoff explains why it is appropriate that American donors gave more money to earthquake relief in impoverished Haiti than to earthquake and tsunami relief in Japan
ABC News, 3/18/2011
"[T]here's a good reason most nonprofits keep these research efforts behind closed doors: 'It creeps a lot of people out.'"
–CharityWatch President Daniel Borochoff on many donors' feelings about charities that dig into donors' personal information (aka data mining) before soliciting them
The Wall Street Journal, 5/16/2010
"Unscrupulous fundraisers are taking advantage of America's concern for veterans. It's a national scandal... And there is a broad concern that over $1 billion (annually) is raised in the name of veterans in this country, and that so little of that is going to help the people in need."
–Mr. Borochoff speaking out against fundraisers enriching themselves at the expense of deserving veterans and well-intentioned donors
The Oregonian, 7/19/2010
"'It's getting so easy, you soon will be able to give by simply blinking your eyes,' says Daniel Borochoff, president of the American Institute of Philanthropy, a watchdog group. 'The problem is it can lead to impulsive giving, which is not good because you can give to an inefficient or ineffective charity.'"
–Mr. Borochoff on the downside of the large wave of cellphone giving (texting) inspired by the disaster in Haiti
USA Today, 2/5/2010
"I really strongly encourage people to put aside the politics and the religion, and realize this is a humanitarian disaster, and we really want to help these people that are suffering, but it really hasn't come forward."
–Mr. Borochoff on the relatively small amount of international aid raised for the 20 million victims of the flood disaster in Pakistan
NPR's Talk of the Nation, 8/17/2010
"I don't think any other charity of their size has had this much outrageous behavior... If there wasn't so much money involved and all the resources that are being wasted, it's a comedy. It could be a soap opera."
–Mr. Borochoff on "F" rated Feed the Children, citing the lawsuits, firings, and allegations against founder Larry Jones
The Associated Press, 9/18/2010
"'It's really tricky because there's a lot of fine print,' Borochoff said. 'The bottom line is to buy the best product for the best price. Any money you save you can donate to charity, and then you get the tax deduction.'"
–Mr. Borochoff on buying products that purport to help a charity (aka cause-oriented marketing)
Chicago Tribune, 9/23/2010
"Soldiers are coming back and more have post-traumatic stress disorder or serious depression. There is a lot of legitimate need... This is not the time to be wasting charitable dollars. People have less to give. Organizations have more to do."
–CharityWatch President Daniel Borochoff on the need for efficient charities during wartime and this tough economic climate
The Miami Herald, 5/21/2009
"It's ironic that the very people who are supposed to be protecting us are participating in a scheme to rip us off... If people understood what is going on, people would not support these groups."
–Mr. Borochoff commenting on charities that claim to benefit police or firefighters and hire aggressive for-profit fundraisers who keep large portions of public donations made on behalf of the charities
South Florida Sun-Sentinel, 1/25/2009
"... although some charities might lose in the short-term, they should be pleased about the overall economic benefits of the [Cash for] Clunkers program... I think this program is going to help charities because it is going to help the people the charities exist to serve. Sure they are likely going to have less cars donated. But there needs to be a calculation: The money charities lose versus more money in the pockets of people in need."
–Mr. Borochoff explaining that it is okay for a governmental stimulus program to negatively impact some charities if its overall effect is to help more people in need
The Associated Press, 8/8/2009
"It's a call to arms for donors to pay more attention and to check up on how the charitable resources are being handled and invested."
–CharityWatch President Daniel Borochoff responding to the loss of charities' invested dollars in the Bernard Madoff scandal
The Wall Street Journal, 12/23/2008
"There will be a lot of additional disclosures, which will be helpful... But you can still be a bad actor and still fill out the disclosure and look really good."
–Mr. Borochoff on the revised IRS 990 tax form for nonprofits
The San Diego Union-Tribune, 11/16/2008
"The charity agrees to it because they want the easy money that they don't have to do any work for... Then the person goes out and spends $1 million to get that $200,000, and the charity tries to rationalize it by saying 'Well, it's money we wouldn't normally have. We don't have staffing for fundraising.' But they're ripping off the public and disrespecting the intentions of the people who gave that money."
–Mr. Borochoff on the propensity for some charities to contract with expensive for-profit fundraisers and the faulty reasoning charities may use to justify their decisions
San Francisco Bay Guardian, 8/6/2008
"It's outrageous that they are acting more like a boys club than a charity. Cook should be applauded for pointing out the wasteful and wrongful spending at the charity."
–Mr. Borochoff on Henry Cook, former board member for the Military Order of the Purple Heart Service Foundation, who reported being voted off the board after blowing the whistle on the Service Foundation's fiscal mismanagement
ABC News, 4/11/2008
“Mr. Borochoff, whose organization rates charitable groups on performance, sees lots of bad behavior for good causes: Organizations suing each other over similar names. Trusted organizations mishandling donations. Waste and confusion created by overzealous sympathizers in the wake of Sept. 11 and the tsunami in Southeast Asia.”
“Then there are the charities formed by celebrities that don’t deliver much more than personal image enhancement. And sadly, almost half of the organizations working to fight cancer are doing a very poor job of making sure overhead costs don’t go overboard…”
–CharityWatch President Daniel Borochoff on the problems in the nonprofit field
The New York Times, 3/25/2007
“It is important to consider the volunteering, fundraising and publicity-generating efforts of candidates for charities in addition to their cash donations… Politicians… can do far more for nonprofits by using their high-profile campaigns to draw attention to causes than donating a few thousand dollars.”
–Mr. Borochoff on judging U.S. presidential candidates by their contributions to charity
Chicago Tribune, 4/25/2007
“The National Cancer Coalition… shows up as a star performer on Charity Navigator, but gets an F at the more forensically minded CharityWatch.org [AIP’s website]. Why? Philanthropic accounting is notoriously slippery and error filled. CharityWatch.org reclassifies things like telemarketing and direct mail costs that are frequently booked by charities as ‘program expenses,’ simply because the fund-raisers slipped in, say, an educational ‘don’t drink and drive’ remark during their calls.”
–Forbes columnist on AIP’s rigorous rating system
“A bedrock principle of well-managed nonprofit organizations is to honor the intentions of your donors… These other programs may be completely noble, but if the donor wants it used for Purpose A, it cannot be used for Purpose B. It’s not good. It does not help current or future supporters of the AFSC to have confidence.”
–Mr. Borochoff defending the right of a deceased donor to have the precise terms of his will followed by the American Friends Service Committee
The Philadelphia Inquirer, 10/8/2007
“If people really want to help, they need to go beyond the immediate emergency and help people get back on their feet.”
–Mr. Borochoff on the need for longer term aid in the aftermath of the August 2007 Peruvian earthquake
San Francisco Chronicle, 8/18/2007
“Come on, if the donor knew that only 14 percent of the money was going to make its way to the charity… people would refuse to give.”
–Mr. Borochoff on Wisconsin Paralyzed Veterans of America’s high telemarketing costs
Milwaukee Journal Sentinel, 3/15/2007
“[Mr. Buffett’s gift to the Bill & Melinda Gates Foundation is] revolutionary… Rather than competing, they are going to pool their resources for a common cause. They are going to affect millions of lives.”
–CharityWatch President Daniel Borochoff on Warren Buffett’s unprecedented donation of over $30 billion
The Wall Street Journal, 6/26/2006
“If everybody starting doing that, it would ruin our whole system for tax-exempt organizations because people would be using them to benefit their business rather than for the public benefit. That’s not why our government gives tax deductions for donations.”
–Mr. Borochoff on Barbara Bush setting a bad precedent when she stipulated that part of her donation for Katrina survivors be spent on educational software from her son Neil’s company
Los Angeles Times, 3/25/2006
“That’s a wonderful way to honor somebody, rather than building a memorial that people may not notice. It’s a way of saying you can attack us, but we’re going to show you that we can do something good with this.”
–Mr. Borochoff on the nonprofits that 9/11 families have founded
Chicago Tribune, 9/11/2006
“This storm involved the largest relocation of people since the Civil War, it’s of historic proportions, so people want to do something about it… Americans do feel very connected to a wide scale disaster like this and they’re inspired to do something.”
–Mr. Borochoff on donors’ response to Katrina
Christian Science Monitor, 3/17/2006
“Unfortunately, the criminal element will target nonprofit organizations, even outside of natural disasters, knowing they don’t have the same level of safeguards and internal controls that a business would have.”
–Mr. Borochoff on the importance of performing background checks on volunteers
San Diego Union-Tribune, 1/1/2006
“Americans have a fixed budget for giving, and if they give to this, it’s not available to give to some other charity. If this group wants to tell people that they’re not going to get 90 percent of what the fundraiser takes in, if they want to be upfront with people, then I have no problem with it.”
–Mr. Borochoff’s response to National Veterans Service Fund’s use of professional fundraisers