The Haiti earthquake has already triggered hundreds of thousands of donations to musician Wyclef Jean's charitable foundation, which expects to raise upwards of $1 million a day in the disaster's wake. However, Internal Revenue Service records show the group has a lackluster history of accounting for its finances, and that the organization has paid the performer and his business partner at least $410,000 for rent, production services, and Jean's appearance at a benefit concert.
Though the Wyclef Jean Foundation, which does business as Yele Haiti Foundation, was incorporated 12 years ago--and has been active since that time--the group only first filed tax returns in August 2009. That month, the foundation provided the IRS with returns covering calendar years 2005, 2006, and 2007--the only periods for which it has publicly provided a glimpse at its financial affairs. In 2006, Jean's charity reported contributions of $1 million, the bulk of which came from People magazine in exchange for the first photos of a pregnant Angelina Jolie (the actress reportedly directed that the publication's payment go to Jean's charity, not her personally).
As seen on the following pages from the foundation's 2006 tax return, the group paid $31,200 in rent to Platinum Sound, a Manhattan recording studio owned by Jean and Jerry Duplessis, who, like Jean, is a foundation board member. A $31,200 rent payment was also made in 2007 to Platinum Sound. The rent, tax returns assure, "is priced below market value." The recording studio also was paid $100,000 in 2006 for the "musical performance services of Wyclef Jean at a benefit concert." That six-figure payout, the tax return noted, "was substantially less than market value."
The return, of course, does not address why Jean needed to be paid to perform at his own charity's fundraiser. But the largest 2006 payout--a whopping $250,000--went to Telemax, S.A., a for-profit Haiti company in which Jean and Duplessis were said to "own a controlling interest." The money covered "pre-purchased...TV airtime and production services" that were part of the foundation's "outreach efforts" in Haiti. No further description of these services was offered, though the return claimed that "the fees paid are below market" and that the use of Telemax was the "most efficient way of providing these services." The group's tax returns also report "consultant" payments totaling $300,000 between 2005-2007, while the 2006 return reported nearly $225,000 in "promotion and PR" costs. These expenses are not itemized further in the IRS returns. Continue Reading
& Then Star's charity repeatedly dissolved after failing to file reports
JANUARY 15--Musician Wyclef Jean's charitable foundation--now the recipient of many donations big and small in the wake of the Haiti earthquake--has repeatedly had its corporate status dissolved for failing to file required state disclosure reports, records show. As seen below, the Florida Division of Corporations has, on four separate occasions over the past five years, sanctioned the Yele Haiti Foundation (the charity was incorporated in Florida in 1998 as the Wyclef Jean Foundation, but formally changed its name two months ago). The longest involuntarily dissolution lasted 26 months, ending in November 2008 when Jean's organization provided Florida officials with overdue annual reports disclosing the identities of the group's officers and directors, its registered agent, and office address. The foundation's most recent dissolution occurred in September 2009, but was vacated a month later when the 37-year-old Jean's group filed its disclosure report. As TSG reported yesterday, the Jean foundation's records delinquency extended to the filing of its tax returns--and could make a prospective donor question whether the organizationally challenged foundation is a wise choice for disaster relief contributions. In August 2009, the group filed overdue tax returns for 2005, 2006, and 2007, documents showing that Jean and fellow board member Jerry Duplessis paid themselves at least $410,000 for services provided to the foundation. Duplessis, a bass player who has toured with Jean, co-owns a New York City recording studio with the performer, as well as a Haiti-based production company. Continue Reading>>
Source:www.thesmokinggun.com
I surely hope and pray that the current donations are going to the right places.
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1 comments:
i saw this too lmao people always run and give their money to things just because someone is a celebrity,im not buying it, no thanks!
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