The Oregon Attorney General is challenging the operations of “charities” that seek donations in Oregon but spend little on their missions. A report in The Oregonian focuses on the activities of Shiloh International Ministries (SIM), which led the AG’s list of “20 Worst Charities” for 2010. SIM is based in La Verne, California; its EIN is 953572055.
A quick look at the latest IRS Form 990 filed by SIM tells a sad tale: less than 3.5% of its spending went to the programs that is raises funds for. A whopping 83.8% went to fundraising expenses. SIM reports “PHONE SOL” (aka telemarketing) receipts of $822,240, that netted SIM $129,341. Put another way, SIM spent $28,483 on its programs, while its telemarketing companies received $692,899 (or 24 times program spending).
In its Form 990, SIM describes its mission as: “TO PROVIDE MEDICAL NECESSITIES & MORAL SUPPORT TO NEEDY CHILDREN AND TO PROVIDE ASSISTANCE TO THE HOMELESS AND HUNGRY, OUR AMERICAN VETERANS, CHILDREN’S HOSPITALS & CHRISTIANS IN NEED EVERYWHERE.” Perhaps SIM should change its mission statement to be: support for the telemarketing industry.
Based on the activities of SIM and others in the “20 Worst Charities” the AG has proposed legislation that would deny Oregon residents a tax deduction for donating to “charities” where less than 30% of their spending goes to their programs.
SIM failed the SeriousGivers’ screening tests. Read SIM’s SGO Report. SIM also reminds us of our rebuttable presumption against donating to organizations that use paid paid telemarketers. We’re awarding SIM one of our not-so-coveted charity skunk awards.
Read the report from The Oregonian.
