Debbie Schlussel posted a long piece last evening about a charity that Sean Hannity is affiliated with, accusing them of malfeasance and mismangement.
FrumForum has done an exhaustive investigation of the charity in question, Freedom Alliance, and found enough evidence to substantially rebut each of Schlussel’s claims. I’ll approach them one by one.
Schlussel Accusation: Sean Hannity improperly benefited from Freedom Alliance by charging private jets, hotel stays and luxury cars.
Freedom Alliance’s press release today stated categorically that they have “never provided planes, hotels, cars, limos, or anything else to Sean [Hannity] … to be clear Sean pays for all his own transportation, hotels, and all related expenses for himself and his family and friends and staff.” We are satisfied that this is true.
It is true that Freedom Alliance spent $60,000 on aviation services in 2006, but there is no evidence that this was for Sean Hannity’s benefit, and it seems unlikely that the money was used to lease a Gulfstream 5. Rates for G5 aircraft average around $8,000 an hour. $60,000 would not buy much at that rate.
We have also been able to confirm that Sean Hannity has no operational control over the organization. Nor is he even a member of the group’s board.
If Schlussel stands behind her statement, then she will have to do better than a quote from a blind source, who is, as she admits, a friend of a friend.
Schlussel Accusation: Too Little of Freedom Alliance’s Spending Has Gone to Program Outcomes.
FrumForum has intensively investigated Freedom Alliance’s 990 Forms, which have been submitted to the IRS and checked by an independent auditor.
Debbie Schlussel alleges that only $1 million of the organization’s $8.8 million in revenue was going to soldiers and scholarships in 2008. This figure is the product of a misleading and selective reading of the organization’s tax forms.
The numbers that Schlussel cite refer to direct financial transfers to individuals – that is, if there is a direct grant that Freedom Alliance gives to a soldier. This does not include all the positive work that doesn’t involve a direct grant.
Freedom Alliance also spends money on non-cash benefits for military families, involving things like taking soldiers to sporting events and sending care packages to troops.
The highest paid employee earned $152,000 in 2006. The second highest paid employee earned $83,000. In 2007, Freedom Alliance spent about $1 in $7 on salary and benefits.
Total staffing costs may seem high, but they are not out of line with what is spent at many other charities. For example, the Armed Services branch of the YMCA spent about $1 in $2 on salaries and benefits in 2008.
Schlussel Accusation: Soldiers Get Grants of Very Low Value
Schlussel is unhappy with “the fact that in each year’s tax returns soldiers described as having brain trauma injuries, multiple amputated limbs, and severe burns over most of their bodies get a few hundred bucks each from Freedom Alliance and in almost every case, no more than $1,000.”
However, this accusation is much weaker when you examine the Department of Defense regulations regarding donations to active duty soldiers.
According to the DOD Joint Ethics Regulation, gifts with a value of over $1,000 must go through a lengthy bureaucratic process which involves ethics officials. Calls to the Department of Defense confirmed this point.
What becomes clear is that there is a bureaucratic process to get approval from an ethics official, and that the costs of working through the bureaucracy for this purpose may want to be avoided by a charity, especially one that is working in a lot of other areas.
Schlussel also decries Freedom Alliance donations of less than $1,000, complaining for example that Freedom Alliance only gave $200 to a serviceman who lost both legs and his left arm. FrumForum has determined that lower-value grants like these are approved for specific purposes, often requested by a DOD case officer. This applies to cases where, for example, a serviceman may need a bus ticket home to visit his family.
The sums may seem small, but a soldier who is already receiving a government benefit may greatly value an airline ticket that goes above and beyond the Department of Defense’s budget.
Schlussel Accusation: Too Little Money Is Being Spent on Scholarships for Children of the Fallen
Schlussel complains that “167 students got an average of just $4,803.89 each in tuition. With the amount this charity raises, these kids should all be getting a free ride paid for by Freedom Alliance.”
The scholarships that she is referring to are considered and approved annually, meaning that a freshman can qualify for about $20,000 over four years.
Further, $4,800 covers more than a year’s tuition at an average Catholic private school and a substantial portion of tuition at many colleges. For example, it nearly covers a year’s tuition at the University of Georgia ($4,900), and covers about a third of a year’s tuition at the University of Michigan ($11,600 for freshmen, $13,000 for upper-classmen).
Overall, Freedom Alliance raised $2.1 million for scholarships in 2008. About $800,000 of that went to scholarships for that year. Schlussel claims that the remainder, “$1,238,636 – all of which was supposed to go to scholarships for these kids of the fallen – went to Freedom Alliance.”
FrumForum was able to confirm with Freedom Alliance that the $1.2 million that Schlussel cites did not go into the general Freedom Alliance revenues, but instead to the organization’s Scholarship Trust Fund.
Why didn’t Freedom Alliance spend all of its $2.1 million on scholarships that year? Considering your average active duty combat soldier is in his mid-20s, many fallen soldiers have children that are not of age to go to college. Saving a substantial part of funds is simply good planning – the process of funding children of the fallen will continue for fifteen to twenty years. The organization’s trust fund now stands at around $15 million.
Schlussel Accusation: Freedom Alliance’s Postage Costs Are Too High
Debbie Schlussel complains that Freedom Alliance spends too much on postage. Freedom Alliance’s listed cost for postage was $775,599 in 2008, which may seem high given their overall expenses. However, Freedom Alliance sends care packages to active duty soldiers in Iraq and Afghanistan, which explains a good deal of the cost behind the postage figure.
Comparing Freedom Alliance to other groups that specialize in sending care packages, Freedom Alliance’s expenditures seem ordinary. For example, Operation Gratitude is a group that specializes in “sending care packages addressed to individual Soldiers, Sailors, Airmen and Marines deployed overseas.” When reviewing their tax forms, FrumForum found that they spend similar amounts on postage. Operation Gratitude spent $773,680 in 2008; Freedom Alliance spent $775,599.
* * *
A day of hard work by Tim Mak and Noah Kristula-Green was able to debunk the charges Debbie Schlussel levied against Sean Hannity.
Tim and Noah worked through IRS forms and comparisons with other charities to conclude that Freedom Alliance does not spend the money it raises on lavish living.
There are other questions of course: After all, only a small portion of the money spent on tickets to “Freedom Concerts” is received by the Freedom Alliance. If say a $40 ticket yields a $4 donation to Freedom Alliance, we can’t vouch for what happens to the other $36. Some must pay for rent of the stadium for example. We have only the written record and what we could find by asking questions.
If people wanted to suggest that a concert is not a very efficient way to raise money for a good cause, they might have a point. The Washington Post reported in 2007 that many military charities spend too much on fundraising expenses. If you were asking my advice about how best to aid wounded soldiers, I’d suggest you give to Fisher House. That’s where President Obama chose to direct a good portion of his Nobel Prize money.
But we were dealing with a specific allegation – not of inefficiency – but of corruption. Schlussel charged that Hannity supported a lavish lifestyle with charitable gifts. And that’s the charge we think we have rebutted.
Posted at 7:25pm by David Frum
Follow Tim Mak on twitter: @timkmak
Michelle Malkin » In defense of the Freedom Alliance and Sean Hannity // Mar 19, 2010 at 11:20 pm
[...] Unhinged smear-mongering spread on the Internet today — and it has been swiftly and definitively debunked and deconstructed. [...]
AnonymousFinch // Mar 19, 2010 at 11:31 pm
I’m glad to read this. Sean Hannity is a good guy who doesn’t deserve to have his reputation slandered.
JeninCT // Mar 19, 2010 at 11:53 pm
“So out of a typical ticket of $50 there are $4 for the charity, $4-75 for the venue, $4.25 for parking. That leaves $37 from a $50 ticket or $62 from a top level $75 ticket. There is no way the artists costs and insurance are going to be of this magnitude. ”
You’re neglecting staffing, accomodations, travel, security, so yeah, the costs go up quickly.
“Promoters who work for profit have to take a decent cut from a ticket. So where is that slice going. It would normally be a lot more than the $4 to the charity.”
The promoters are the ones who take the risk, so they take the profit, which isn’t necessarily a bigger slice than $4.00 anyway. You sound like someone who’s never run anything. Besides, the claim is that $4.00 of every ticket goes to the charity. That’s what happens. End of story/
JeninCT // Mar 20, 2010 at 12:04 am
Egads. I just went over and read some of Debbie Schlussel’s piece. It’s great journalism when the ‘facts’ come from ‘a friend who performed’ and the people quoted are from a message board who call themselves ‘chickenbone’ and wonkling’.
Scary.
Norwegian Shooter // Mar 20, 2010 at 12:32 am
“Operation Gratitude spent $773,680 in 2008; Freedom Alliance spent $775,599″
This statement is meaningless without knowing how much each charity shipped. Operation Gratitude is planning on sending 100,000 packages in 2010. How many did FA send in 2008?
“Freedom Alliance shipped more than 14,000 pounds of “Gifts from Home” care packages last year [2009] overseas and plans on shipping thousands more in 2010.” Link Unless each package is around two ounces, I don’t think FA comes close.
OG goes on to state:
“Donated funds are used to pay for production, shipping and communication expenses. We do not pay for fundraising campaigns (eg. direct mail, staged events) or employee salaries. Operation Gratitude’s administrative expenses are so low (less than 2%), and our management so efficient that Charity Navigator would not compare us to other organizations of similar size. This is a tribute to the patriotic spirit of the many key volunteers who devote themselves to the organization without pay in order to express appreciation to the Military. Our Directors, Executive Director and key personnel have agreed to forego any payment to ensure the fulfillment of our donors’ charitable intent that all service members receive care packages. All contents of the packages are donated by individuals and groups through collection drives, or by companies that donate their own products. Our budget for 2010, to ship 100,000 packages, is $1.2 Million, of which $1 Million is postage. Our overall cost per package is $12; the donated contents of each package are worth ~$125.”
Just the donated contents alone will be $12.5 million dollars. That means expenses will be 9.6%. Add donated funds for expenses and donated employee salaries, and the final number is lower.
On the other hand, Shussel states the follow program expenses for each year for FA:
2006: 62%
2007: 53%
2008: 61%
TerryF99 // Mar 20, 2010 at 8:47 am
Jeninct.
Any Company that made only $4 on $75 would be out of business pretty soon that margin is ridiculous. Please stop the personal insults.
Stephen B // Mar 20, 2010 at 9:15 am
I don’t read Debbie Schlussel; I’ve seen enough of her stuff that I regard her as a paranoid anti-Islamic fringe person, and I was surprised to see David Frum giving her such credence.
I agree that the “exhaustive investigation” of Mr. Mak may be a bit of a “slender reed” in the circumstances.
Sean Hannity’s “Freedom Alliance” a scam? No, apparently Debbie Schlussel is just BATSHIT CRAZY! « Smash Mouth Politics // Mar 20, 2010 at 12:14 pm
[...] IV: Frum Forum gets the last word, I think. Note, Batshit Crazy girl even tried to defend herself in the comment [...]
Gramps // Mar 20, 2010 at 4:32 pm
Good old, “Hammerhead Hannity”; always knew he was a damn fast talker and now this sneaky, CYA, comparison and juxtaposition with respect to other charity’s expenses…while lining my jean’s sorta scam.
Doesn’t surprise me a tall.
My Daddy used to say; “Just remember son, no one has ever talked fast enough to stay outta jail”!
chicagoray // Mar 20, 2010 at 8:42 pm
I really don’t have a dog fighting here because I used to like both, but what I get tired of is people criticizing what others do to help the troops yet I’d bet in this room alone less than 5% have given a dime to the troops, particularly on a regular basis much less in the amounts we’re talking about here. Me included, but I’m not the one writing on my blog that he’s stealing from Freedom Alliance.
And secondly Debbie should check what our government pays you or I when you lose a limb or an appendage while on the job. My best friend lost his thumb in a printing press where we once worked together, the Chicago Tribune, and he got a measly $800 for his right thumb from the Workman’s comp insurance .
So think about that for a second, Hannity doesn’t have to do any of this, and for that alone he should be commended. A radio show and tv show and he does all this in his spare time. I know people who call in sick when they worked overtime the night before and women who do it all the time for PMS/
KFS444 // Mar 20, 2010 at 9:48 pm
Does anyone think that the people who paid $50 or $75 for concert tickets knew that only $4 was going to charity? Isn’t that the point, that the donors are being bamboozled?
The difference is so large. I’d want to see a thorough, audited accounting before coming to any conclusions or exonerating anyone.
This reminds me of Don Imus’ charity ranch and the very, very high amounts he was spending compared to Paul Newman’s charity ranch and Paul Newman wasn’t using his charity ranch to promote himself as Imus uses his charity ranch. Frankly, its not good. You’re imposing on other people’s goodness and generosity and you have an obligation to see that the money is spent the way those people would want it spend, i.e., to do the most good possible.
Below The Beltway » Blog Archive » Freedom Alliance Responds To Allegations // Mar 21, 2010 at 9:54 am
[...] Additionally, another conservative blogger has examined Debbie Schussel’s allegations and believes that they can be refuted. [...]
Yephora // Mar 21, 2010 at 10:04 am
#25 wrote: “What’s really tipped me into the anti-Schlussel camp, though is her response above @ 1. It accuses Frum of doing a 180 . . . in order to preserve his access to the Fox airwaves, because of a direct threat from Hannity. . . That rings false to me and indeed is so obviously unlikely . . .”
Whether true with Frum or not I do not know. But it isn’t so unlikely: Hannity gave the same ultimatum to Ann Coulter, telling her that she’d be barred from his TV and radio should she ever appear on the Steve Malzberg show again (Conservative talker Malzberg is Sean’s head-to-head radio competitor in NY).
How do I know it’s true? Because Malzberg revealed on the air that Coulter had just phoned him explaining Hannity’s threat to her as the reason she was canceling her scheduled interview and why she would no longer be appearing on his show. And she hasn’t–she’d been a frequent guest for years. I was listening that day and heard Malzberg say it myself.
wwwDOTfreerepublicDOTcom/focus/f-news/2159856/posts
» Behind the Scenes of the Freedom Concerts Tours - Big Journalism // Mar 21, 2010 at 2:26 pm
[...] felt I had to write this as I have taken part in nearly every Freedom Concert Tour since Sean Hannity and Col. Oliver North have been promoting them over the last few [...]
antimedia // Mar 22, 2010 at 3:13 pm
All this pointless back and forth could be resolved in a few seconds. Just go to Charity Navigator and look up Freedom Alliance. Charity Navigator is an independent evaluator of charities with no particular ax to grind with anyone.
What you will find is the Freedom Alliance is a four star charity spending 81.5% of the revenues on Program Services. If you don’t know what Program Services are, you can look that up on their site as well. Freedom Alliance ranks higher than The American Diabetes Association, the American Heart Association, the American Cancer Society, the United Way and the Red Cross. In fact, Charity Navigator places them in the following category: “Four Stars Exceptional Exceeds industry standards and outperforms most charities in its Cause.”
Schlussel posted links to the Form 990’s for 2006 and 2008. Did you bother to look at them? If you did, you would see that their expenditures for Program Services are exactly what Charity Navigator lists them as. IOW, Schlussel and Charity Navigator agree on the numbers but disagree on their meaning.
I’ll leave it to readers to decide who might have an agenda in their interpretation.
nwahs // Mar 22, 2010 at 9:59 pm
“All this pointless back and forth could be resolved in a few seconds. Just go to Charity Navigator and look up Freedom Alliance. Charity Navigator is an independent evaluator of charities with no particular ax to grind with anyone.”
That doesn’t tell the whole story. All the charity navigator can do is rate the charity, not the company that raises money for the charity.
Hypothetically, if $4 of a $40 ticket went to the charity and $25 of a $40 ticket went to the CEO of the company throwing the concert, would you consider it a charity event or profiteering? The article here states the concerts are inefficient and then assumes they are innocently inefficient. No one has followed the money. No one knows if they are inefficient because of extravagant perks or simple mismanagement. What is clear is this group of conservatives are more concerned about who’s feathers are being ruffled than the inefficiency of the concerts. That conservative trait speaks volumes.
antimedia // Mar 22, 2010 at 11:54 pm
The charity (and Hannity) is what was attacked by Schlussel. The charity (and Hannity) is what is defended by this article. Your side issues have nothing whatsoever to do with the issue of whether or not the charity is properly handling the funds that it receives. Nor was it an issue raised by Schlussel, except tangentially. If you want to attack the freedom concerts as wasteful or inefficient or corrupt, be my guest. But at least do a better job of it than Schlussel has of her polemic.
BTW, if the freedom concerts were considered official fund raisers for the Freedom Alliance, they would be included in the federal filing. Furthermore, as Terry99 points out above tickets to the concerts clearly state the amount that goes to Freedom Alliance. If concert goers don’t like that, they don’t have to attend.
Maybe Schlussel was shooting at the wrong target?
An Attack On The Right, From The Right, Gets Debunked By The Right « The Rantings of Vern Rigg Kaine // Mar 25, 2010 at 2:46 pm
[...] Hannity. I’m not a fan of him, but regardless was surprised at the allegations. Then I found this rebuttal from David [...]
nwahs // Mar 25, 2010 at 3:52 pm
Hannity sanitized?
Not so much. David, I can not believe the huge overhead you reported did not make you take a second look before before dumping on Schlussel. Her mistake was simple – she was looking in the wrong place for the extravagant perks. Now she’s looking in the right place. You should too.
http://www.debbieschlussel.com/19630/big-business-who-owns-the-freedom-concerts-how-sean-hannitys-private-jets-luxe-suvs-suites-were-paid/
Huffington Post is REALLY Stretching It This Time | thelobbyist // Mar 29, 2010 at 2:30 pm
[...] Huffington Post has ignored the MM and Frum Forum analyses- the latter, particularly, shows that the accusations are false- and has an article on the [...]
MSNBC’s Dylan Ratigan Touts Left-wing Group to Convict Sean Hannity Over Freedom Concerts | Republican.Gnom.es // Mar 30, 2010 at 11:53 am
[...] Hannity for the supposed misuse of funds by a pro-troop organization he supports, a claim already investigated and debunked. The anchor highlighted complaints against the Freedom Alliance group by the George [...]
Brent Bozell Deliberately Misleads His Readers! - 2parse // Mar 30, 2010 at 12:23 pm
[...] that either explaining that or providing a link to that would be relevant. He did include a link to a refutation of the charges which did link to the source of these allegations – namely that Sean Hannity [...]
Hannitized is Sanitized | Politisite // Mar 30, 2010 at 4:49 pm
[...] Hannitized is Sanitized | FrumForum. Post Published: 30 March 2010 Author: politisite Found in section: [...]
Right On Right Violence To A Soundtrack Of Lee Greenwood « Around The Sphere // Apr 3, 2010 at 12:51 pm
[...] Tim Mak at FrumForum: Schlussel Accusation: Sean Hannity improperly benefited from Freedom Alliance by charging private jets, hotel stays and luxury cars. [...]
LiberalHottie // Apr 6, 2010 at 9:04 pm
Thanks for your good work. Doesn’t make me any more appreciative of Hannity, but the charity’s good name is redeemed. I have to agree that fundraising costs seem high — I hope the people buying concert tickets are deducting $4, not $40.