Charity watchdog groups are raising concerns about the Wyclef Jean Foundation, questioning its accounting practices and its ability to effectively function in Haiti following the earthquake. Despite receiving over $2 million in donations via text message in just two days, experts doubt the foundation’s capacity to aid those in need.
Art Taylor, president of the Better Business Bureau’s Wise Giving Alliance, highlighted issues with the foundation’s accounting, noting that three years of tax returns were filed simultaneously, and the foundation’s spending exceeded its revenues by $411,000 in 2007.
The foundation, founded in 2005, aims to airlift supplies to Haiti, but its financial ties to Jean’s personal businesses raise red flags. Tax returns reveal payments to businesses owned by Jean and his associates, including $250,000 to Telemax S.A., a TV station majority-owned by Jean, and $160,000 for a Monte Carlo concert that included payments to Jean’s company, Platinum Sound Recording Studios Inc.
Sandra Miniutti of Charity Navigator expressed concerns about the foundation’s lack of disaster relief experience, noting that it had not been evaluated recently due to its small size. However, foundation president Hugh Locke defended their efforts, citing their involvement in past disaster relief in Haiti and Jean’s influence in gaining access to troubled regions.
The foundation is seeking bridge financing to use the pledged donations, which will take at least a month to receive due to billing delays. This delay presents both a challenge in immediate action and an opportunity for donors to reconsider their contributions.
Overall, while the foundation has received substantial support, its ability to effectively manage and utilize the funds for disaster relief remains under scrutiny.
