Tuesday, November 29, 2011

Wyclef to Foundation Donors: Your Money's Gone 'til November...or Forever


This week, the New York Post released a report that claims singer, hip hop artist and composer, Wyclef Jean, used chunks of money from his charity, Yele Haiti, for his own benefit.  Specifically, the Post says that while Wyclef's organization received some $16 million in donations shortly after a hurricane struck Haiti in January 2010, only $5.1 million was actually spent on relief efforts, while millions were given to contractors with ties to Wyclef or businesses that never actually existed.

Wyclef is a very talented hip hop artist and composer.  He has revolutionized creativity in hip hop.  He has managed his career with an eye on longevity, undertaking thoughtful projects and collaborations on his albums.

However, clearly his charity, even by his own admission, has been mismanaged since its inception in 2005.  The charity has a track record of loosing money, failing to file proper financial reports and statements, and keeping the transparency charities and foundations doing the work Wyclef's claims to be doing should have.

I also acknowledge that it was in very poor taste for Wyclef to show up immediately after the hurricane, in a tailored suit and limousine while the citizen wallowed in squalor. 

However, with all of that said, Wyclef's charity isn't the first charity that is poorly run.  A vast majority of charities only direct a third (which is what Wyclef's charity spent on direct relief efforts) of the funds they raise on direct relief.  In fact, a charity that directs about 60 percent of its funds to direct relief, a well-run charity organization.

Which means that the problem is systemic.  Charities, even well-intentioned ones, are not directing all of their funds to direct relief for one reason or another.

So, why is Wyclef's charity under, what I consider an unusual amount of scrutiny for its mismanagement?  I understand that it's noteworthy, but why is Wyclef's organization the subject of an exclusive New York Post report and article, when there are so many other poorly managed charities that should be scrutinized?

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