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Sunday, December 1, 2013

FLORIDA - Biker charity BADD reported different revenue to state and IRS

OFF THE WIRE
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BADD gave fraction of revenue to victims...

ORMOND BEACH, Fla. —A WESH 2 investigation Tuesday found the Ormond Beach-based Bikers Against Drunk Drivers charity is spending only a tiny fraction of their funds to actually help victims.
The state is now investigating, and WESH 2 News investigative reporter Matt Grant found the charity is telling the Internal Revenue Service something completely different than they're telling the state.
A state senator is looking to crack down on that.
BADD's mission is to reduce the incidents of drunk driving and provide victims with financial assistance.
But last year, BADD reported revenue of $879,000 but gave less than 1percent of that to victims.
WESH 2 showed their returns to the president of Charity Navigator, a respected nonprofit charity watchdog.
In 2011, BADD reported a revenue of nearly $1 million but gave less than 1 percent to victims, spending nearly half a million dollars on for-profit professional fundraisers.
"When donors find out about this they are typically enraged and rightfully feel very ripped off," said Charity Navigator President Ken Berger.
The founder of BADD, Daniel Perkins, says the charity speaks for itself. He would not say how much money he's made from BADD.
"It really causes people to question whether they can trust an organization like this, and quite frankly, we don't think they should," said Berger.
Then, there are BADD's tax returns.
WESH 2 News Investigates found in 2011, BADD reported revenue of nearly $1 million to the state of Florida. But it told the IRS revenue was less than $50,000. The IRS declined to comment, and the state is investigating.
"These forms need to be reviewed to make sure there's enough information on these forms that they're truly accurate," said Sen. Jeff Brandes, R-St. Petersburg.
Brandes is drafting a bill that would crack down on charities that don't report correctly.
"We need more individuals actively in the field looking at these charities, understanding a much deeper level what their financials are," said Brandes.
Brandes wants charities that report incorrectly to be fined, or even banned, and that's a start, according to Charity Navigator.
"Scoundrels and thieves can get away with murder," said Berger. "The amount of oversight is miniscule. It's the wild west. That's what we're talking about. It's really an out of control system."
Florida state officials are investigating BADD because of what WESH 2 uncovered.
On Wednesday, Charity Navigator issued a donor advisory against BADD.
Perkins has declined repeated requests for an interview.