RSS Feed MenuDebbie Schlussel has just posted a disturbing story credibly alleging serious financial improprieties at Sean Hannity’s Freedom Concerts.
[L]ess than 20%–and in two recent years, less than 7% and 4%, respectively–of the money raised by Freedom Alliance went to these causes, while millions of dollars went to expenses, including consultants and apparently to ferret the Hannity posse of family and friends in high style. And, despite Hannity’s statements to the contrary on his nationally syndicated radio show, few of the children of fallen soldiers got more than $1,000-$2,000, with apparently none getting more than $6,000, while Freedom Alliance appears to have spent tens of thousands of dollars for private planes. Moreover, despite written assurances to donors that all money raised would go directly to scholarships for kids of the fallen heroes and not to expenses, has begun charging expenses of nearly $500,000 to give out just over $800,000 in scholarships.
It’s of course possible that this is a misunderstanding or mistake by Schlussel.
If mistaken, one would assume we’ll hear a defense from Hannity himself or his many admirers. If not mistaken, you’d assume we’d hear some kind of reaction from conservatives – and some kind of explanation/apology from Hannity. It’s not possible – is it? – that the conservative world will just pass by the affair in embarrassed silence?
True, Schlussel’s piece went up yesterday evening, and as of 9 am I can find no mention or reference in the conservative blogosphere. But its early.
So here’s my personal query. I’m going to set my google alert and twitter feed to find Hannity items. If anybody who can plausibly be considered a conservative discusses – even mentions – the Schlussel allegations, I’ll let you know. And if nobody does … well that’s not possible. Is it?
UPDATE: First mention! TheNextRight’s blogger RBIII tweets at 9:38 AM.
Apparently, allegations about Hannity are more important than that shredding of the Constitution if you’re a ‘Progressive.’
Posted at 9:44am
UPDATE 2: Here’s John Tabin at the American Spectator blog:
As Schlussel points out, reputable charities are expected to run with overhead of no more than 25%; these concerts are running with overhead of as much as 96%. I suppose it’s possible that Hannity himself wasn’t aware of what the balance sheet looks like, but a source tells Schlussel that Freedom Alliance founder Oliver North confronted Hannity at one point about how much of the charity’s money was being spent on private jets, luxury SUVs, and hotel suite. If that’s true, Hannity has a lot of explaining to do.
Posted at 11:20am
UPDATE 3: John Tabin updates his report at AmSpec:
“I’m hearing from reliable sources that Schlussel’s suggestion that Freedom Alliance pays for Hannity’s travel expenses is wrong. There’s little doubt that, if the numbers she cites are correct, the charity is seriously mismanaged, but it might not be as bad for Hannity personally as Schlussel’s report makes it look. Stay tuned.”
Posted at 1:45pm
UPDATE 4: Freedom Alliance has released a statement responding to Debbie Schlussel’s allegations.
Posted at 3:00pm
mlloyd // Mar 19, 2010 at 2:17 pm
theod– also haven’t seen much about the Ensign-related subpoenas to the NRSC. http://thehill.com/homenews/senate/87781-nrsc-subpoenaed
Everyone has a tendency to minimize the faults of “our side,” I guess.
ottovbvs // Mar 19, 2010 at 2:20 pm
mlloyd // Mar 19, 2010 at 2:17 pm
“Everyone has a tendency to minimize the faults of “our side,” I guess.”
…….from what I’ve read about this case I’d say Ensign is likely to end up getting indicted because the Feds seem to be casting a wide net
lincolndemocrat.com » Blog Archive » The last bastion… // Mar 19, 2010 at 2:32 pm
[...] is hawking gold and now this on Sean [...]
Independent // Mar 19, 2010 at 2:43 pm
You now it’s a bad day in the land of farLeft trolls when the FF echo chamber is reduced to the likes of ottBS and LFC feeding off each other for some much needed mo-jo.
Sorry guys, America’s #1 patriot, USMC Col Oliver North, ret, is not a criminal. He was following the orders of his superiors while in the service of his country. The arms that were sold to Iran were used to kill Saddam’s Republican Guard. In exchange –remind me of what America got?
Oh yeah, the thing that held your great statesman, JimmineyCircket hostage in the Rose Garden for weeks and weeks on end –our fellow US citizens, CIA agents and soldiers kidnapped by the Iranian fundamentalist terrorists you guys help out into power.
Hey, I know it’s hard for your side to imagine a President having some success in international affairs –what with Obama’s only success being a Nobel prize for being Obama.
Here’s a new matrix of mine: when you have expanding ego and hubris, divided by accelerated celebrity, it always equals an increased odd of 100% that colossal failure is eminent.
Hannity seems to be case in point. Obama is another.
Two of the same peas, just in different pods.
Nice try at the echo chamber, trolls. I think you should consult professionals like B’fault and agent’P before trying it again.
Jeffry1 // Mar 19, 2010 at 2:44 pm
Theod. I am a Republican and it is not ok. Fraud is fraud. If this was a story in the Daily Kos back with any legs, then instead of asking why no con. news outlets ran with it, tell me why MSNBC, the other mainstream networks, etc. did not either. This is the absolute first I have ever heard of this story. As I said, if this is true, then the guy should be investigated.
Jeffry1 // Mar 19, 2010 at 2:47 pm
Independent…Ollie North craps bigger than otto and LFC.
There is still no bigger fraud in America than Barack Hussein Obama. Never has so much power been given to a man with so little substance and history by so many people who knew so little about him. A man who, but for his color, would never have been taken seriously in a PTA election.
ottovbvs // Mar 19, 2010 at 2:50 pm
Jeffry1 // Mar 19, 2010 at 2:47 pm
…….your opinions on Obama are interesting but predictable, any one eating carrots?, but really nothing to do with whether Hannity is a crook
ottovbvs // Mar 19, 2010 at 2:56 pm
Independent // Mar 19, 2010 at 2:43 pm
” Here’s a new matrix of mine: when you have expanding ego and hubris, divided by accelerated celebrity, it always equals an increased odd of 100% that colossal failure is eminent.”
……Sure worked out like that for George Bush…..is that why you voted for him……to test your theory?
MSheridan // Mar 19, 2010 at 3:10 pm
Ah, Independent must be a lot younger than I’d have guessed. Otherwise he’d remember that the hostages he criticized Jimmy Carter for being unable to help were released literally on Reagan’s first day in office in 1981, after months of work by Warren Christopher. Aside from conspiracy theorists on the left, no one believes Reagan had anything to do with the release of those hostages. The weapons in question were sold over a two-year period starting in Reagan’s second term and the hostages in the “arms for hostages” scandal were abducted on Reagan’s watch and not just in a single abduction. Some were abducted (it is believed) as replacements for those already released and unlike the embassy staff, not all of them were, in fact, released. Some never were.
But heck, I’m just a lefty. I know you won’t listen to me. How about this guy, though? First, let me say I take full responsibility for my own actions and for those of my administration. As angry as I may be about activities undertaken without my knowledge, I am still accountable for those activities. As disappointed as I may be in some who served me, I’m still the one who must answer to the American people for this behavior. And as personally distasteful as I find secret bank accounts and diverted funds – well, as the Navy would say, this happened on my watch.
Let’s start with the part that is the most controversial. A few months ago I told the American people I did not trade arms for hostages. My heart and my best intentions still tell me that’s true, but the facts and the evidence tell me it is not As the Tower board reported, what began as a strategic opening to Iran deteriorated, in its implementation, into trading arms for hostages. This runs counter to my own beliefs, to administration policy, and to the original strategy we had in mind. There are reasons why it happened, but no excuses. It was a mistake.
I undertook the original Iran initiative in order to develop relations with those who might assume leadership in a post-Khomeini government. It’s clear from the Board’s report, however, that I let my personal concern for the hostages spill over into the geo- political strategy of reaching out to Iran. I asked so many questions about the hostages’ welfare that I didn’t ask enough about the specifics of the total Iran plan.
Let me say to the hostage families: We have not given up. We never will. And I promise you we’ll use every legitimate means to free your loved ones from captivity. But I must also caution that those Americans who freely remain in such dangerous areas must know that they’re responsible for their own safety.
Independent // Mar 19, 2010 at 4:06 pm
MSheridan must be older… it’s the only way to excuse the mentally feeble mind of his, no? Warren Christopher “saved” the hostages? Oh, get real.
Arguably the worst Secy of State in history, the chinless & gutless & spineless Warren Christopher as SoS-Jr tried to negotiate the release of the US hostages but failed in his effort for a record 444 days. His boss, Carter’s Secy of State Cy Vance, resigned in protest over the actions of Carter in authorizing Operation Eagle Claw to free –by military force– the American hostages who had become pawns of the jihadists in Iran and the perfect metaphor for Carter’s failure as a president.
The hostages were released because Reagan became President and the Iranians feared he would be the strong, decisive leader that he proved well to be. They feared him given his saber rattling pledges during the campaign and the lead-in to assuming office from the failed & disgraced Carter team. That’s why the hostages came home on the day of his Inaugural –Christopher couldn’t have even arranged bus transit for the hostages, if needed, let alone get the hostages free… he was the same utter failure his president modeled for him so well.
Hey, Warren Christopher didn’t even have the guts to resign his position, like his more honorable boss Cy Vance, for his continued failure to secure the freedom of our fellow citizens in Tehran.
Christopher went on to sell out America and help turn over the Panama Canal to a bunch of drug-running, old school, Chicago Thug-styled despots in Panama… that Geo Bush 41 had to go in and clean out.
Like saving the hostages, I can understand how the farLeft would like to imagine the wildly successful Mr Carter somehow accomplished something that eluded him for 444 days straight.
Just like you’d like to forget that Carter’s human rights initiative against the Shah of Iran lead directly to the rise of the Islamic jihadist terror threat and you’d like to forget how Carter’s sell out of America to a drug lord had to be cleaned up, again, by yet another GOPer.
But then, you guys are certain that Obama is a whompingly great success as a foreign leader –even if it is just about his celebrity over any substance.
These days, that’s all you got to hang a hat on.
Independent // Mar 19, 2010 at 4:17 pm
MSheridan punts: “But heck, I’m just a lefty. I know you won’t listen to me. How about this guy, though?”
Well, at least you aren’t the intellectually dishonest lefty that many here try to play with the “I was a GOPer, now I’m an independent” hoax.
Ronald Reagan’s words –perfectly crafted and brilliantly delivered by a seasoned actor who knew his part and his lines–should have just reminded you of the phrase “plausible deniability.
But it didn’t. Alas.
Here’s a bit of trivia for you MSheridan… if you look at the wiki entry for “plausible deniability”… it references the so called Guns4Hostages affair as an example of the use of presidential PD. Neat, eh?
But as the Church Committee once noted about presidential PD, the buck should still stop with the President.
Today, Obama doesn’t believe the buck stops with him… he’s spent the first yr trying to pin it on anyone, everyone but him. Bush, Cheney, Rove, Fox News, the GOP, the evil insurance industry, bankers, GM, ignorant American voters, fear mongerers… and when one of the Obami is close by, Obama will toss the culprit under the Obama Bus if he needs to for politically expediency… nice guy.
ottovbvs // Mar 19, 2010 at 4:23 pm
Independent // Mar 19, 2010 at 4:17 pm
……..After acres of blather and ad homs we get Indies bottom line…..Reagan was a liar….in prime time
Sean Hannity’s scam « Later On // Mar 19, 2010 at 4:24 pm
[...] wounded vets it purports to support—is being picked up by “reasonable” conservatives. Frum, for example, wonders if other conservatives will even mention that Sean likes to fly to those [...]
MSheridan // Mar 19, 2010 at 4:35 pm
Interesting. Christopher was “chinless, gutless, and spineless,” so he failed, and Carter was weak, despite actually authorizing Eagle Claw (had he been stronger, I guess the sandstorm that forced down the helicopters would have known better than to mess with him).
Meanwhile, Reagan was “strong and decisive” and the Iranians feared him even before he took office, which is why Hezbollah kidnaped hostages in his Presidency–so they could take notes of how real leaders handle these things (apparently through supinely submitting to blackmail from foreign enemies of the state). If only he’d been able to sell them even more missiles, he’d have gotten all those men back.
Contrary to your expectation, I was born after the Summer of Love, and thus was not affected by the psychotropic stuff I think would be necessary to swallow your rather interesting take on reality.
TerryF99 // Mar 19, 2010 at 4:40 pm
“Statement of Functional Expenses-2006 (certain examples on 990 Form page 2) The 990 Report is 30 pages long.
$14,503,615 Net assets or fund balances at end of year:
$306,500 Scholarship Grants
$ 97,400 Grants and Contributions
$1,414,215 Printing and publications
$641,411 Consultations
$242,042 Compensations of current officers
$604,310 Salaries and wages not included above
$1,703,232 Postage and Shipping
$246,232 Educational Outreach Consultant
$457,622 Other Expenses
$9,098,290 Scholarship Fund at end of year
$791,555 Temporarily Restricted Net assets
So basically the group began the year with 14.5 million, spent $306,500 on scholarship grants (no guarantee they go to a worthy applicant, they go directly to the college which may or may not use it that way.) and ONLY $97,400 went directly to military families. And where’s the rest of the money? So the Freedom Alliance at best gave anywhere from 2% to 8% of its expense money to children of military personnel who died in service. Using the high number, 8% of 8% is less than 1%. So there it is, LESS THAN 1% of the money from Sean Hannity’s Scam Concert goes to helping the children of military families yet Hannity bills it as a concert to help these families.”
ottovbvs // Mar 19, 2010 at 4:53 pm
TerryF99 // Mar 19, 2010 at 4:40 pm
……OMG….I hadn’t seen this….so out of roughly $4 million of expenditures $400k went to payouts for scholarships (even if it wasn’t ultimately spent that way) and direct payments, and 3.6 million went on admin, salaries and expenses (Sean’s seegars?)…….oh dear Sean meeboy apparently you’ve some ’splainin to do……it will be interesting to see if the MSM run with this
TerryF99 // Mar 19, 2010 at 5:19 pm
Otto it’s worse.
A typical concert tickets reads thus.
WHERE: COORS AMPHITHEATRE IN CHULA VISTA, CA.
2050 Entertainment Circle, Chula Vista, CA 91911
WHEN:Thursday – July 26, 2007 7:30 PM (Doors open at 5:30 PM)
TICKETS: Prices: $38.00 – $78.00 PURCHASE TICKETS »
The following fees are included in the above ticket prices: $4.75 facility fee, $4.25 parking fee, and a $4.00 donation to the Freedom Alliance
So out of a typical ticket at say $50 only $4 goes to the freedom alliance. What happens to the other $45?
H/T DK
ottovbvs // Mar 19, 2010 at 7:02 pm
TerryF99 // Mar 19, 2010 at 5:19 pm
…..Oh boy…..Judging by the retort on another thread Ms Schlussel has her teeth into this and I can’t believe she isn’t soon going to be getting a load of “help” if she hasn’t already got it…….Unless Sean is in Caesar’s wife territory I don’t think we’ve heard the last of this…….David’s Mak “investigation” and acquittal is preposterous.
ltoro1 // Mar 19, 2010 at 9:42 pm
I haven’t looked at any documentation, but if Hannity is not an officer or board member of this non-profit he will probably at worst be guilty of poor judgement for not performing due dilligence regarding an organization he is lending his name to. He could almost claim that he is as much a victim as the donors.
akw // Mar 20, 2010 at 9:08 am
I can’t believe that Frum would post this garbage from Schussel. It’s a LIE!
“This week, false and malicious allegations about Freedom Alliance were posted on the Internet and we want to address them with you. We don’t know the motivation for these vicious smears, but we will not allow them to go unanswered.”
Dear Friends of Freedom Alliance: (March 18, 2010)
This week, false and malicious allegations about Freedom Alliance were posted on the Internet and we want to address them with you. We don’t know the motivation for these vicious smears, but we will not allow them to go unanswered.
First, we want to thank you for your support and assure you that Freedom Alliance’s record of financial stewardship and programmatic achievements not only meets, but exceeds standards of program efficiency set by most charity evaluators. We are extraordinarily proud of our work at Freedom Alliance and stand by our efforts 100 percent.
False Accusations
The blog posting accuses our friend Sean Hannity of personally benefiting from Freedom Alliance. This is FALSE. Freedom Alliance has never provided planes, hotels, cars, limos, or anything else to Sean. Sean gets nothing from Freedom Alliance except our gratitude for his personal generosity and for all he has done to help the troops and our organization. We have never had to ask Sean for anything, he always generously offers his help before we have a chance to ask him. But to be clear Sean pays for all his own transportation, hotels, and all related expenses for himself and his family and friends and staff, which over the years has added up to tens of thousands of dollars. He does not use any Freedom Alliance Funds or Concert funds in any way, period.
Sean Hannity has contributed $100,000 to the Wounded Warriors Foundation, over $200,000 to the Freedom Alliance, and over tens of thousands of dollars to other military charities and individuals. We only make this information public because of the outrageous slander against him. Sean has no management or operational involvement in, or control over, Freedom Alliance. He has been a selfless patriot in his efforts to raise funds for the education of children of armed services personnel.
The blog posting accuses Freedom Alliance of spending less than 20% of money raised on program activities. This is FALSE. Listed below are the amounts that Freedom Alliance spent for each of the past three years and the categories on which they were spent. The figures are taken from our Federal Form 990 which is filed with the Internal Revenue Service and posted on our web site and audited by an independent auditor using Generally Accepted Accounting Principles. This financial record not only meets, but exceeds standards of program efficiency set by most charity evaluators.
In 2008, Freedom Alliance spent a total of $6,745,717. Of that:4.
79 percent ($5,317,970) was spent on Program Activities•
14 percent ($945,950) was spent on Fundraising•
7 percent ($481,797) was spent on Management •
In 2007, Freedom Alliance spent a total of $7,461,350. Of that:
81.5 percent ($6,084,474) was spent on Program Activities•
13.5 percent ($1,011,501) was spent on Fundraising•
5 percent ($365,375) was spent on Management•
In 2006, Freedom Alliance spent a total of $7,064,839. Of that:
77 percent ($5,434,538) was spent on Program Activities•
18.5 percent ($1,308,414) was spent on Fundraising•
4.5 percent ($321,887) was spent on Management•
The blog posting accuses Freedom Alliance of spending money intended for student scholarships on 5. other expenses. This is FALSE. Freedom Alliance has distributed $3.4 million in Scholarships and created a Scholarship Trust Fund with the additional money that we have raised for that program. That fund now contains $15 million, over $10 million of which has been raised by Hannity and the concerts. Our scholarship program is managed with the understanding that it will be needed for at least the next 20 years as there are children who will ultimately receive a scholarship who are now only a few years old. As indicated on our Federal Form 990, these funds are restricted and used only for future scholarships.
Our Scholarship Fund is one of four programs operated by Freedom Alliance. Supporters may donate to a specific program or for general operating purposes.
In 2008, Freedom Alliance received $2.1 million in scholarship donations. The same year, we awarded $802,250 in scholarships and applied $1.3 million to our Scholarship Trust Fund. The funds donated by Sean Hannity directly — or through the proceeds of the Freedom Concerts — and the support of thousands of Americans are used for these purposes:
Freedom Alliance Scholarship Fund• : Providing scholarships to those whose parents have been killed or severely injured in their service to our Country. There is now over $15 million in the scholarship fund for the students as they come of age.
Support our Troops• : Many events each year are planned and executed by our staff to show appreciation and provide special opportunities for those actively serving in the military.
Leadership Academy• : A program for high school students in which they are encouraged and trained to serve their country.
These programs would not be possible without the support of Mr. Hannity and many others.
We are proud of our work and numerous accomplishments. We are grateful to our supporters whose voluntary contributions make it possible and we thank you. While it is discouraging to have our record misrepresented in such a malicious way, our work is important and, with your support, it will continue.
Respectfully,
Thomas P. Kilgannon, President
Oliver L. North, Founder & Honorary Chairman
Freedom Alliance v 22570 Markey Court, Suite 240 v Dulles, Virginia 20166 v (703) 444-7940
http://www.freedomalliance.org/images/pdf_and_largepics/freedom_alliance_response.pdf
Independent // Mar 21, 2010 at 8:48 am
Well the farLeft trolls at FF have been found to be a lying, disingenuous bunch of hysterical wet nannie… wanna guess it’ll be a long time before an apology is noted here?
Right On Right Violence To A Soundtrack Of Lee Greenwood « Around The Sphere // Mar 23, 2010 at 6:39 am
[...] David Frum at FrumForum: It’s of course possible that this is a misunderstanding or mistake by Schlussel. [...]