Practices of Arizona Network of Charities Raise Questions About Federal Policy, Newspaper Says
May 4, 2009 | Read Time: 1 minute
More than a dozen charities associated with a Phoenix televangelist took credit in federal tax filings for donating tens of millions of dollars’ worth of medicines and other goods that they did not actually collect, store, or distribute, The Arizona Republic reports in an investigative series.
According to the newspaper, at least 14 of 22 charities tied to Don Stewart Association used paper ownership transfers of materials passed through multiple organizations to claim the goods’ full value as incoming revenue and outgoing donations on tax returns from 2003 to 2005.
Some watchdogs say such practices, while not illegal, can mislead donors and benefit charities by inflating their financial profile. Officials with the association defended its practices, noting that the materials reached their intended destinations in the developing world.
The Chronicle examined these charities in a 2007 investigative report available in our archives.
(A paid subscription or temporary pass is required to view the Chronicle article.)
