The start of January, with New Year’s resolutions not yet fading into memory and hangovers from the long, sad tedium of 2004 still lingering, seems like an appropriate time to take stock of a few things.
The credit-card debt towering over our heads. The friend we refused to bail out of a small-town lockup. The sheer emotional mess of our lonely lives. And whether we’re giving enough money to the charities we appear on television to promote.
For pop star Jessica Simpson, along with Rosie O’Donnell, Derek Jeter and plenty of other stars, carefully cultivating relationships with select charitable foundations-or founding one’s own-is a part of the job. There’s the oft-touted need to use one’s advantages to help others. And all that altruism makes for some great headlines!
If some stars use causes to benefit from the attention, plenty of others use the attention they get to benefit causes. Who are we to say which are which?
Leonardo DiCaprio and Sandra Bullock are giving plenty to tsunami disaster relief, and Oprah Winfrey and Rosie O’Donnell have won praise for the sheer size and the efficiency of their charitable organizations. But there are a few celebrities-like Calvin Klein and Whitney Houston-whose groups are either in debt or haven’t donated very much money. Whatever their intentions, their results are something we can judge.
So The Observer decided to take a look at several dozen celebrities and their charities-to see how much money they’re raising, how much they’re giving away and how much they’ve squandered.
“A lot of celebrities will set up a foundation with a lot of hoopla and fanfare and don’t put their own resources into it-for some reason, they’re chintzy-and don’t ask their wealthy friends for money either,” said Daniel Borochoff, the president of the American Institute of Philanthropy, a charity watchdog group. “Sometimes they’ll get family and friends involved that don’t know what they’re doing, so the charity ends up poorly managed.”
According to industry guidelines, about 60 percent of a charity’s expenses should go directly to charitable activities. While most of the charities on this list meet that target-Jessica Simpson and Vince Carter, shame on you-others are falling into debt or inactivity.
“Michael Jackson’s had a number of charities that didn’t amount to anything,” said Mr. Borochoff. “I’ve been told a lot of egregious stories in confidence, so I can’t tell you the really good stuff!”
Some of the best-respected celebrity charities are the Lance Armstrong Foundation and the Christopher Reeve Paralysis Foundation, according to Sandra Miniutti, director of external relations and spokeswoman for Charity Navigator, another charity watchdog.
“On the flip side, one of the most well-known poorly run charities is Operation Smile, which has partnered with Jessica Simpson,” she said. “A relatively low percentage of their budget is going to the services they’re in the business of providing and instead go to high administration and fund-raising expenses.
“The majority of celebrity-affiliated charities are well-run. However, what we say to donors is: Just because a celebrity endorses the charity doesn’t mean it’s an excellent charity.”
See for yourself. The entries below show how much the celebrities raked in and the percentage of the charities’ expenses (“Ratio of Program Expenses” in philanthropy-speak) that actually went to charitable activities.
Rosie O’Donnell
Charity: The For All Kids Foundation
Goals: To provide financial supportto nonprofit programs serving ecnomically disadvantaged and at-risk children.
2003 Assets: $35,217,244
2003 Revenue: $1,694,320
2003 Expenses: $2,991,681
2003 Program Expenses: $2,393,529
Ratio of Program Expenses: 80 percent
C.E.O. Compensation: $106,412*
*Treasurer Daniel Crimmins’ company, DPC Management, located in a suite down the hall from the foundation, provided investment advice for $304,476.
Christopher Reeve
Charity: Christopher Reeve Paralysis Foundation
Goals: To fund research that develops treatments and cures for paralysis caused by spinal-cord injury and othercentral-nervous-system disorders.
2003 Assets: $13,287,227
2003 Revenue: $14,168,116
2003 Expenses: $17,389,633
2003 Program Expenses: $12,141,308
Ratio of Program Expenses: 70 percent
C.E.O. Compensation: $220,000
Charity Navigator Rating: III
Lance Armstrong
Charity: Lance Armstrong Foundation
Goals: To increase awareness, encourage the government to take action, and address the health-policy concerns of people battling cancer, and to support their families.
2003 Assets: $9,928,999
2003 Revenue: $9,043,412
2003 Expenses: $10,541,883
2003 Program Expenses: $8,523,966
Ratio of Program Expenses: 81 percent
Highest Salary: $133,338
Charity Navigator Rating: IIII
Britney Spears
Charity: Britney Spears Foundation
Goals: To raise funds to benefit selected charities.
2003 Assets: $74,737
2003 Revenue: $342,907
2003 Expenses: $516,826
2003 Program Expenses: $391,028 ($1,106,781 in 2002)
Ratio of Program Expenses: 75 percent
Highest Salary: $30,741
Vince Carter
Charity: Embassy of Hope Foundation
Goals: To raise funds for organizations and individuals who work to improve the quality of life for children.
2003 Assets: $25,570 ($53,898 in 2002)
2003 Revenue: $152,930
2003 Expenses: $185,690
2003 Program Expenses: $48,345 ($127,229 for fund-raising)
Ratio of Program Expenses: 26 percent
Highest Salary: No paid employees
Jessica Simpson
Charity: Operation Smile (Ms. Simpson is the national spokeswoman)
Goals: To repair childhood facial deformities; to build public and private partnerships that advocate for sustainable health-care systems for children and families.
2003 Net Assets: $9,319,733
2003 Revenue: $11,422,567
2003 Expenses: $10,995,539
2003 Program Expenses: $6,244,788
Ratio of Program Expenses: 56 percent
Highest Salary: $176,538
Charity Navigator Rating: I
Jayson Williams
Charity: Jayson Williams Foundation
Goals: Youth Education and Counseling
2003 Net Assets: –$7,051 (deficit)
2003 Revenue: $62,342
2003 Expenses: $69,393
2003 Program Expenses: $62,918
Ratio of Program Expenses: 90 percent
Highest Salary: No paid employees
Muhammad Ali
Charity: American Parkinson’s Disease Association
Goals: Founded in 1961 to “Ease the Burden and Find the Cure” for Parkinson’s through research, as well as patient and family support and education.
2003 Net Assets: $11,021,906
2003 Revenue: $11,501,031
2003 Expenses: $8,590,305
2003 Program Expenses: $6,263,257
Ratio of Program Expenses: 73 percent
Highest Salary: $162,435
Charity Navigator Rating: III
Tiki Barber
Charity: Fresh Air Fund (Mr. Barber is on the board of directors)
Goals: Over 10,000 New York City children enjoy free Fresh Air Fund programs annually.
2003 Net Assets: $96,363,662
2003 Revenue: $14,588,390
2003 Expenses: $13,112,546
2003 Program Expenses: $9,897,264
Ratio of Program Expenses: 75 percent
Highest Salary: $233,871
Charity Navigator Rating: II
Paul Newman, Julia Roberts
Charity: Hole in the Wall Gang Fund
Goals: A nonprofit summer camp and year-round center which serves children and their families coping with cancer, sickle-cell anemia, H.I.V./AIDS or other life-threatening illnesses.
2003 Net Assets: $43,792,497
2003 Revenue: $4,821,671
2003 Expenses: $6,074,557
2003 Program Expenses: $5,207,971
Ratio of Program Expenses: 85 percent
Highest Salary: $113,500
Charity Navigator Rating: II
Bruce Willis
Charity: Willis Foundation
Goals: Raise funds to benefit charities.
2003 Net Assets: $874
2003 Revenue: $312,000
2003 Expenses: $111,688
2003 Program Expenses: $107,500
Ratio of Program Expenses: 96 percent.
Highest Salary: No paid employees
Calvin Klein
The Calvin Klein Foundation
2003 Assets: $8,728
2003 Revenue: $57
2003 Expenses: $125
2003 Program Expenses: $0
Ratio of Program Expenses: 0 percent.
Highest Salary: No paid employees
Oprah Winfrey
Charity: Oprah’s Angel Network
Goals: Grants awards to grassroots organizations in under-served communities that assist people with basic human needs, dignity and educational initiatives.
2003 Assets: $7,430,851
2003 Revenue: $4,967,827
2003 Expenses: $2,173,896
2003 Program Expenses: $1,930,895
Ratio of Program Expenses: 89 percent
Highest Salary: $58,805
Michael J. Fox
Charity: Michael J. Fox Foundation for Parkinson’s Research
Goals: Dedicated to ensuring the development of a cure for Parkinson’s disease within the decade.
2003 Assets: $15,738,571
2003 Revenue: $16,335,971
2003 Expenses: $17,881,605
2003 Program Expenses: $15,989,657
Ratio of Program Expenses: 89 percent
Highest Salary: $210,000
Bruce Springsteen
Charity: Thrill Hill Foundation
2003 Assets: $3,206,479
2003 Revenue: $1,009,354
2003 Expenses: $128,102
2003 Program Expenses: $128,000
Ratio of Program Expenses: 100 percent
Highest Salary: No paid employees
Whitney Houston
Whitney Houston Foundation for Children
2003 Fund Balance: -$6,144 (in debt)
2003 Revenue: -$270
2003 Expenses: $2,027
2003 Program Expenses: $0
Ratio of Program Expenses: 0 percent
Highest Salary: n/a
Derek Jeter
Charity: Turn 2 Foundation
Goals: Established to identify and fund nonprofit organizations in Western Michigan and New York City which focus on substance-abuse prevention and treatment for youth.
2003 Assets: $2,010,369
2003 Revenue: $1,549,729
2003 Expenses: $1,157,444
2003 Program Expenses: $973,985
Ratio of Program Expenses: 84 percent
Highest Salary: No paid employees
Russell Simmons
Charity: RUSH Philanthropic Arts Foundation
Goals: To provide opportunities, facilities and funding to artists of diverse cultural background.
2003 Total Assets: $781,142
2003 Revenue: $953,620
2003 Expenses: $912,058
2003 Program Expenses: $716,735
Ratio of Program Expenses: 78 percent
Highest Salary: $93,746
Joe Torre
Charity: Joe Torre Family Foundation for Margaret
Goals: Dedicated to fund and develop education programs that will end domestic violence.
2003 Net Assets: $278,847
2003 Revenue: $337,172
2003 Expenses: $58,325
2003 Program Expenses: $50,000
Ratio of Program Expenses: 85 percent
Jane Pauley/Gary Trudeau
Grandison Foundation
2003 Assets: $2,538,830
2003 Revenue: $375,863
2003 Expenses: $338,910
Total Charitable Expenses: $325,500
Ratio of Program Expenses: 96 percent
Highest Salary: n/a
The following celebrity charities have not filed tax returns since 2002:
Aerosmith Foundation (debt of $5,060 in 2001)
Donald J. Trump Foundation (net revenue of $350 in 2002)
Brokaw Family Foundation (net revenue of $32,750 in 2002)
Arod Foundation (Alex Rodriguez) (debt of $21,369 in 2002)
Bernie Williams Foundation (debt of $28 in 2002)
Michael Bolton Charities Inc. (debt of $160,606 in 2002)
Christy Turlington Charitable Foundation (debt of $15,452 in 2002)
Peter Jennings Foundation (net revenue of $125,348 in 2002)
Carol M. Baldwin Breast Cancer Research Fund (the Baldwin brothers) (net revenue of $183,558 in 2002)
Robin Hood Foundation (Gwyneth Paltrow, Harvey Weinstein are on the board) (net revenue of $7,742,820 in 2002)
Ennis William Cosby Foundation (debt of $111,975 in 2002)
William Henry Cosby Jr. and Camille Olivia Cosby Foundation (debt of $268 in 2002)
The Gere Foundation (net revenue of $1,540 in 2002)
Tommy Hilfiger Corporate Foundation (0 percent ratio of charitable expenses in 2002)
The Hilfiger Family Foundation (debt of $15,737 in 2002)
The Justin Timberlake Foundation, which provides financial aid to education groups who develop or enhance music programs in the public schools, hasn’t filed a return since 2002, when it reported assets of $6,306 and $141,077 in program services (a 74 percent ratio of its total expenses).
