Sandy Relief Group Sued For Fraud

The founders of a Hurricane Sandy relief group have been sued by the state of New Jersey for allegedly diverting funds for personal use, while victims of the storm supposedly received little money.

John Sandberg and Christina Terracino founded the Hurricane Sandy Relief Foundation (HSRF) in the aftermath of the deadly super storm to help those affected by it. On Thursday, the state Attorney General's Office and the New Jersey Department of Consumer Affairs (DCA) filed a lawsuit against the two founders and the Foundation. According to a report in The Asbury Park Press, the suit cites numerous violations of NJ's charity code, including allegedly diverting $17,000 in donated funds to, among other things, pay credit card bills and shop online.

“This organization told the state it does not pay its executives, but our investigators found a paper trail reflecting thousands of dollars being transferred into the individual defendants’ personal bank accounts,” said Attorney General Jeffrey S. Chiesa in a prepared statement. “Meanwhile, less than one percent [$1,650] of the money raised, has allegedly been paid out to help the victims of Sandy.”

According to the Foundation's website, almost $631,000 in cash donations were raised. The state's complaint alleges that nearly $39,000 of that money remains missing.

Other accusations against Sandberg and Terracino include, allegedly:

• Misleading donors by falsely claiming the Foundation is a tax-exempt 501(c)(3) charity; and,
• Co-opting the name of the Hurricane Sandy New Jersey Relief Fund, which was founded by NJ First Lady Mary Pat Christie.

You can read the full story in The Asbury Park Press.

12-12-12 Concert Rakes In Cash For Sandy Relief

Yesterday was a special day for a number of reasons. First, it's going to be a long time before we see a date, day, and year (12/12/12) like that again. More importantly, it was the date of the 12-12-12 Concert for Sandy Relief at Madison Square Garden in New York City.

Our editor-in-chief, Paul Clolery, was in attendance for the six-hour long show, and has a summary of the night's events on our website. The concert featured legendary performers including Bruce Springsteen, Bon Jovi, Billy Joel, Rolling Stones, and Sir Paul McCartney, in addition to contemporary artists like Kanye West, Chris Martin of Coldplay, and Alicia Keys, who closed out the night with a rendition of her hit song "Empire State of Mind" alongside McCartney.

Yet the big story of the night was money raised for Hurricane Sandy Relieft. Donations went to organizations serving victims of the storm through the Robin Hood Relief Fund. Before an act even took the stage, the concert raised $37 million. A final donation tally was not available as of this writing.

Individuals who called in through the night to make a contribution had the chance to speak to a host of celebrities who were working the call center. These included big names such as Adam Sandler, Ben Stiller, Whoopi Goldberg, Steve Buscemi, Naomi Campbell, Tony Danza, and James Gandolfini.

One of the highlights of the night came when McCartney, one of the last two surviving Beatles along with Ringo Starr, helped front a reunion of the '90s grunge band Nirvana. The band was headed by the late Kurt Cobain, and McCartney filled his role by performing a new song written by the surviving members of Nirvana called "Cut Me Some Slack."

The 12-12-12 Concert was broadcast to a worldwide audience of nearly two billion people through television feeds, radio, and online streaming sites. The show was reminiscent of the first benefit show for charity, the Concert for Bangladesh, also held in Madison Square Garden, in 1971. That show was organized in part by legendary Indian musician Ravi Shankar, who passed away this week at the age of 92.

You can read the full overview of the concert on the NPT website.

Opening Of New YMCA In Coney Island Delayed After Sandy

Coney Island, a community and a perennial tourist attraction in Brooklyn, N.Y., was hit hard by Superstorm Sandy, but the damage done won't stop the YMCA from opening the area's first center.

The new location is on track to open, though it will likely be delayed by at least four months, according to a report in Crain's New York Business. The new Y is scheduled to open sometime during the second half of next year. The 44,000-square-foot facility will be designed to fit the needs of the area, and will include two swimming pools and a gym and fitness area, both which residents hope will combat the high rate of diabetes around Coney Island.

Plans for the new location are part of a decade-long effort to revitalize Coney Island, which might be best known for its oceanfront amusement park.

Presently, the closest Y location is in Park Slope, 16 subway stops from Coney Island. Jack Lund, CEO of the YMCA of Greater New York, told Crain's that construction of the new location will employ 125, including part-time positions. These new jobs will be a boon to a community that has an unemployment rate of 51 percent, six times the average of Brooklyn. 

The Coney Island YMCA facility will be located on Surf Avenue and 29th street, where it will be exclusively focused on the residents of the community. It is expected to draw 15,000 members, two-thirds of whom will be children.

You can read the full article in Crain's New York Business.

NY AG Requests Sandy Aid Info From Nonprofits

Nonprofits across the country have been busy raising money in support of relief efforts in the aftermath of Superstorm Sandy. New York Attorney General Eric Schneiderman now wants to know the exact details of those fundraising efforts.

According to an article in The Wall Street Journal, Schneiderman's office sent letters to at least 75 nonprofits on Tuesday requesting disclosure of their fundraising efforts for Sandy. The information will be compiled online by the attorney general's office Charities Bureau in an effort to improve transparency and donor confidence.

"In the coming weeks and months, we expect to reach out to you for additional information, including more detailed information about how donations have been expended and the steps taken to prevent fraud and/or misuse of resources," Jason Lilien, chief of the Charities Bureau, wrote in the letter.

Lilien goes on to write that he expects to get responses from the organizations by Dec. 11. The information that is being requested includes amounts raised and spent so far and whether the donations received will be used solely for storm relief. In addition, information regarding services provided to victims, funds forwarded to other groups, and plans for any surplus or direct grants to individuals, families or businesses.

The nearly 75 organizations contacted by the the Charities Bureau include the American Red Cross and the AARP Foundation. Letters to more nonprofits are expected to be sent in the coming weeks.

As of  this writing, the agency has only received a small number of complaints about Sandy-related relief efforts by charities, reports which are currently being investigated.

You can read the full story in The Wall Street Journal.

SBA Loans For Nonprofit Operations

Cross-Posted from The NonProfit Times Website

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If your nonprofit operates in any county that has been declared a major disaster area by President Barack Obama due to Hurricane Sandy, it might be eligible for low-interest loan from the Small Business Administration (SBA).

Nonprofits can borrow up to $2 million at 3 percent interest rate on up to 30-year terms. Public liaison Carol Chastang said the SBA has already distributed 32,000 loan applications via mail and email in relation to Hurricane Sandy. According to Chastang, it takes 10 days after the SBA receives a completed application to render a decision.

As of Thursday, President Obama has declared major disasters in New York, New Jersey and Connecticut counties, but Chastang said her office, in conjunction with FEMA, is still conducting assessments in areas affected by Sandy and it is likely that additionally counties will be declared major disaster zones. The latest disaster declarations can be found at SBA’s Sandy hub: www.sba.gov/sandy

“We encourage people to make that phone call as quickly as possible,” said Chastang. “You can also apply online. We also encourage everyone to register with disasterassistance.gov or FEMA because other forms of assistance will be made available in the days to come.” She added that registering with FEMA, disasterassistance.gov or the SBA is “plugging into the pipeline.” Online SBA disaster loan applications are available at https://disasterloan.sba.gov/ela/, or you can call 1-800-659-2955.