Celebrity Baby Shower Gift

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.

1. 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.

2. 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.

3. 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.

4. 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.

5. 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. The high cost of postage can be explained by the necessarily high cost of sending packages around the world into two war zones.

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

FP/ here

"... Domestic policy isn't our beat (except when it gets in the way of foreign policy) but we know that in Washington nothing succeeds like success and a vote like this will define the prevailing media narrative on the Obama administration: come Monday they will be seen as either brilliant or bungling. This narrative is going to extend beyond healthcare to other major issues, including foreign policy.

So here's a quick guide to what the state of the world will be, depending on whether or not the bill goes through.

If health care passes:

Iran: The Islamic Republic is on its last legs, challenged at every turn by the ever-expanding Green movement, which the Obama administration wisely avoided undermining with explicit public support. Instead of a confrontational approach, the U.S. has taken its time to build international consensus, put tough but highly-targeted sanctions in place, and given Mahmoud Ahmadinejad just enough rope to hang himself.

Af-Pak: The offensive in Marjah was a rousing success, al Qaeda leaders are being taken out or arrested left and right, the tide is turning against the insurgency, Pakistan is finally cooperating, Gen. Stanley McChrystal is the greatest U.S. military commander since Douglas MacArthur.

Iraq: The withdrawal of U.S. troops continues on schedule, violence is way down, Iraq's sectarian are working out their in Parliament rather than in the streets, David Petraeus is the greatest U.S. miltary commander since George Washington.

Israel-Palestine: Finally, a U.S. administration showed some backbone dealing with Israel, condemning the expansion of settlements and working to strong-arm both sides to the table. Netanyahu's settlement freeze was a step in the right direction. Obama has proven that the White House can be a strong ally to Israel without being a pushover.

Russia: U.S.-Russia relations are better than they've been since the 1990s. Thanks to the Obama administration's less confrontational approach and compromise on missile defense, a successor to the START treaty is near and Moscow is finally starting to cooperate on Iran.

Gitmo/detainees: The Obama administration has restored constitutional norms and proven that the war on terror on terror can be won and valuable intelligence gained without torture or illegal detentions. Dozens of Gitmo detainees have been relocated and the civilian trials for al Qaeda leaders will be a success.

Global warming: Thanks to Obama's last minute intervention, the climate change summit saved face in Copenhagen. After healthcare, with momentum on its side, the administration will take on energy and finally make cap and trade a reality.

Rahm Emanuel: A fucking genius.

If health care fails:

Iran: With his shameful silence, Obama hung the Green Movement out to dry. Iran is closer than ever to building a nuke, (if Israel doesn't bomb it first) the Chinese are never going to cooperate on sanctions, and the administration's engagement strategy has been proven a failure.

Af-Pak: U.S. troops are sinking into a unwinnable quagmire, Marjah was a meaningless backwater, Afghanistan's corrupt government and incompetent military will never be able to function without U.S. support, Pakistan is placating the U.S. while still not taking the Taliban seriously. Obama should have listened to Joe Biden when he had the chance.

Iraq: The election was marred by fraud, none of the major political disputes have been resolved, the insurgency is biding its time, the U.S. military faces a choice between remaining in Iraq for decades or watching a sectarian bloodbath erupt as it pulls out.

Israel-Palestine: The setttlements continue to expand, Obama is hopelessly unpopular in Israel and unable to influence Netanyahu, the Palestinian Authority is a corrupt joke and Hamas will never renounce violence. George Mitchell should quit while he still retains a shred of credibility.

Russia: While Hillary Clinton has tea with Dmitry Medvedev, Vladimir Putin is eating Obama's lunch. Russia is building nuclear reactors in Iran, delaying START again and again, meddling in Ukraine, tightening its grip on Georgia's breakaway regions and repressing its own people. The reset was nothing more than appeasement, and the U.S. hasn't even gotten anything out of it.

Gitmo/detainees: Obama hasn't even been able to close Gitmo, but in any event, he's putting Americans at risk of another terror attack by not letting interrogators do their job. The civilian trials, if they happen at all, will be a publicity circus that makes a mockery of the fight against terror. The justice department is infested with al Qaeda sleeper agents.

Global warming: Was invented by Al Gore to sell DVDs.

Rahm Emanuel: [Unprintable.]