Charities Receive F's
the April/May 2009 issue of the Charity Rating Guide &
While not all charities that have family
members running them receive poor grades from the American Institute
of Philanthropy, many of them do. The Chronicle of Philanthropy
last September published "Family Ties: a Sampling of Charities
With Relatives in Top Spots." Five of the six family-run charities
mentioned in the article receive F grades from AIP. (Note: Unless
otherwise stated the following relationships were identified in
each charity's tax form.):
American Veterans Coalition was
founded and is run by Robert Friend and his wife Shao Mei Wang.
The couple also founded three other groups that they operate together.
Cancer Fund of America was founded
by James Reynolds Sr., who has two sons on staff, James Jr. and
Michael, and a son-in-law, Joshua Loveless.
Children's Wish Foundation International
has as its top two executives a husband and wife, Arthur J. Stein
and Linda Dozoretz.
Feed the Children has a husband
and wife, Larry and Frances Jones, in the two top spots and a daughter,
Larri Sue Jones, who formerly served as general counsel.
National Association of Chiefs of
Police told AIP that family connections include a mother, Donna
M. Shepherd, and her two sons, Barry and Brent, as well as her former
daughter-in-law, Jamie, in key positions.
A charity's executive may appear to have
a reasonable salary until you learn that his wife and children are
also on the group's payroll. Angel Food Ministries is a nonprofit
that generously compensates the family that operates it. The Wingo
family (consisting of the parents, Wesley Joseph and Linda Wingo,
and their two sons, Andrew and Jonathan Wesley) received $2.5 million
in combined compensation over the two fiscal years 2006 to 2007.
In addition all four family members had a combined $1.098 million
worth of loans outstanding from the charity as of year ending 2007.