CharityWatch has assigned Troopathon (formerly known as Move America Forward) a "?" rating for its 2025 financial reporting year due to concerns identified by the Attorney General of the State of California in its Complaint, filed against the charity in July of 2019 with the Superior Court of the State of California, County of Sacramento. The court issued a Judgment on the matter in March of 2023 (as described below). However, CharityWatch continues to have concerns about the size and composition of the charity's governing body. CharityWatch previously assigned Troopathon a "?" rating for its 2018, 2021, and 2023 financial reporting years. For more information, please see the related CharityWatch article, "Move America Forward Held Back by Financial & Political Interests of its Directors." Troopathon's 2025 IRS Form 990 reports only three voting members on its board of directors. One component of meeting CharityWatch's good governance benchmarks is maintaining a board with at least five voting members, the majority of whom are independent under IRS standards. A three-member board provides fewer independent voices to oversee management decisions, executive compensation, and related-party transactions, while also limiting the range of expertise available to the organization. In addition, the absence of, or a conflict of interest involving, even one director can significantly impair the board's ability to function as an independent check on management. Small boards are also generally more susceptible to domination by founders or executive staff. The California Attorney General's 2019 complaint named Move America Forward's Chief Strategist Salvatore Russo, Chairman Melanie Morgan, Executive Director Shawn Callahan, and Director Howard Kaloogian as defendants. Two of these individuals remain in leadership today: Howard Kaloogian as Chairman, and Shawn Callahan as Executive Director. This continuity of leadership by individuals named as defendants in an Attorney General action alleging self-dealing and misleading solicitation practices warrants continued scrutiny, particularly given the small board size discussed above. A Final Judgment in case #34-2019-00261222 filed with the Superior Court of the State of California County of Sacramento on March 23, 2023 states that the "Defendants shall make payment of One Hundred Thousand Dollars ($100,000.00) by check payable to the California Department of Justice..." The case was resolved through a stipulated settlement rather than a trial. Accordingly, the judgment neither establishes that the defendants engaged in wrongdoing nor clears them of the allegations. The settlement resolved the litigation without a judicial determination of the disputed allegations. It further states that "Defendant Salvatore Russo confirms his plan to step down and retire from his position as a director on MAF's board, and from his positions as MAF's chief strategist, secretary and treasurer, by January 20, 2023. Further, as to MAF, Defendant Salvatore Russo shall no longer: (1) act as a director, officer, trustee, manager, supervisor, or other fiduciary, or (2) hold, manage, direct, or control funds or assets. Defendant Salvatore Russo shall comply with the foregoing should he volunteer for MAF thereafter, and shall not be compensated by MAF for volunteer work. Defendant Russo, Marsh & Associates, Inc. may continue to provide services to MAF, but not after July 31, 2023, and Defendant Salvatore Russo shall not provide services to MAF through another business." The organization did follow through on the injunctive terms related to Russo, who was required to step down from his board and officer positions and to no longer act as a fiduciary or control funds. Troopathon's current governance disclosures confirm Russo's removal, showing compliance with this term even as Kaloogian and Callahan, also named defendants, have remained in leadership. In consideration of the above, CharityWatch has assigned Troopathon (formerly Move America Forward) a rating of "?" for its 2025 financial reporting year. CharityWatch may reevaluate its rating once complete financial information becomes available for its 2026 financial reporting year. |