Sean The Shister

[Dr. Shane]

Debbie Schlussel Exposes Sean Hannity’s Freedom Concert Scam

Last week, I told you about Sean Hannity’s Freedom Concert scam and how the ultimate recipient of some of the proceeds, Freedom Alliance, spent millions on cronies and expenses, very little on severely wounded soldiers and scholarships for America’s fallen. In fact, it’s far worse than I originally reported. The scam is far bigger. And it’s big business....for cronies and friends of Sean Hannity and Oliver North...

While those buying tickets think all of the proceeds of the concerts go to the Freedom Alliance, in fact, none of the proceeds go to the charity, only the $4 surcharge. The source confirmed that Premiere paid for Hannity (out of Freedom Concerts revenue) to fly to many of the concerts on private jets, along with his entourage, and the source confirms the conversation I described in my report last week, in which North scolded Hannity for wasting so much of the Freedom Concert money on private jets, swanky suites, and luxe SUVs. The source is the second source to confirm the conversation. The particular conversation cited took place in 2008, and there were several witnesses to it, including one of Hannity’s radio producers, who is married to Oliver North’s former personal assistant. Don’t look for her to tell the truth . . . if either of them ever wants to work again.

The source said that North scolded Hannity about this on several occasions, and is, again, the second such witness to confirm that. North won’t publicly admit to this–and knowingly signed a false letter claiming that Hannity pays for his travel and accommodations for the Freedom Concerts–because North makes big bucks from Premiere Speakers Bureau. Premiere books North for several speaking engagements a month, at $30,000-$40,000 a pop. That’s where he makes his money, and is extremely wealthy because of Premiere and Ward. He can’t afford to kill the golden goose.

The source said, however, that I got two tiny details wrong: that Hannity didn’t only fly on Gulfstream 4 or 5 jets, but oftentimes flew on Embraer Legacy 600 private jets. (Hannity usually flies these private planes out of Atlantic Aviation on Long Island.) Also, that Hannity didn’t always use Cadillac Escalades to ferry around his posse. Sometimes, it was the comparable Yukons, Tahoes, or Suburbans. My bad. The costs add up to hundreds of thousands of dollars, and according to the source, Hannity pays for none of it...

And then there is Premiere’s scamming of the artists who appear at the Concerts. Premiere signs the artists to appear at the concerts. The source says that some of the talent, like at least one artist I know of who’ve appeared at the concerts, are told by Ward’s Premiere employees that since the proceeds are “going to charity,” they are expected to pay their own travel and perform for free. At the same time, other artists, like Montgomery Gentry–according to the source, are paid an appearance fee and luxe travel and accomodations are provided. The source estimates that Genty was paid $50,000 to perform at one Freedom Concert, while the source believes that Michael W. Smith performed for free.

The scams are so deep and so large that Freedom Alliance, the charity that benefits (and also wastes a good deal of the money on expenses and spending on cronies) did not allow media coverage of the Freedom Concerts at one point...

[text is from link]

[phkrause]

Great article.

[bonnie]

Great article.

Most articles are that are written by someone with an ax to grind.

David Frum

Tim Mak

Noah Kristula-Green

All Authors

Hannitized is Sanitized

March 19th, 2010 at 5:22 pm Tim Mak | 51 Comments |Share | Print

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.

Schlussel Accusation: 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.

Schlussel Accusation: 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.

Schlussel Accusation: 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.

Schlussel Accusation: 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.

Schlussel Accusation: 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. 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.

[phkrause]

And I have not read one article on this thread that's been posted on the last few years that wasn't from someone that didn't have an axe to grind. That doesn't mean that there article doesn't have any truth to it. And that goes for all article's, not just the ones I happen to like or enjoy.

[Dr. Shane]

One of the things that makes this so damaging to Sean the Shister is that Debbie Schlussel is a conservative herself. This scandal is almost a year old already. Many of Sean's followers will follow him off a cliff, drink red kool-aid and do anything he commands. He has always been a Limbaugh want-a-be but has never quite got there. I have pity on him. Poor guy. What he needs is the good old Seventh-day Adventist message. I wonder if someone is sending him Liberty Magazine.

[bonnie]

One of the things that makes this so damaging to Sean the Shister is that Debbie Schlussel is a conservative herself. This scandal is almost a year old already. Many of Sean's followers will follow him off a cliff, drink red kool-aid and do anything he commands. He has always been a Limbaugh want-a-be but has never quite got there. I have pity on him. Poor guy. What he needs is the good old Seventh-day Adventist message. I wonder if someone is sending him Liberty Magazine.

[Dr. Shane]

The tax returns are posted on line for those that want to look for them. Less than 20% of the money for Freedom Alliance has gone to the troops and their families. Too many hands pulling money out of that pot. I have no problem with people making money. I am sure all those mindless Hannity fans would go to the concerts even if they were not suppose to be a charitable event. He should just be honest about it. At least Glen Beck is honest about his greed. I can respect a man for that.

[bonnie]

The tax returns are posted on line for those that want to look for them. Less than 20% of the money for Freedom Alliance has gone to the troops and their families. Too many hands pulling money out of that pot. I have no problem with people making money. I am sure all those mindless Hannity fans would go to the concerts even if they were not suppose to be a charitable event. He should just be honest about it. At least Glen Beck is honest about his greed. I can respect a man for that.

The concerts sound like fun.

This has been out long enough if true it would have been blasted over the front page of every newspapaers for months.

[Dr. Shane]

He hasn't done anything illegal. There is no legal scandal. It is just an issue of ethics and morality. He claims he is having these great big charity concerts but only a small percentage of the proceeds actually go to charity.

[Guest]

He hasn't done anything illegal. There is no legal scandal. It is just an issue of ethics and morality. He claims he is having these great big charity concerts but only a small percentage of the proceeds actually go to charity.

That's true with virtually EVERY charity.

[bonnie]

He hasn't done anything illegal. There is no legal scandal. It is just an issue of ethics and morality. He claims he is having these great big charity concerts but only a small percentage of the proceeds actually go to charity.

It would not matter a hill of beans whether legal or illegal.

The left having proof and grabbing a hold of this would hang on like a pit bull

[bonnie]

The tax returns are posted on line for those that want to look for them. Less than 20% of the money for Freedom Alliance has gone to the troops and their families. Too many hands pulling money out of that pot. I have no problem with people making money. I am sure all those mindless Hannity fans would go to the concerts even if they were not suppose to be a charitable event. He should just be honest about it. At least Glen Beck is honest about his greed. I can respect a man for that.

One of the founders of our church was a extremely wealthy man. He had far more than the typical wealthy. We had a family in church that spent a great deal of time worrying their heads over this man's greed. Jealousy stuck out like a neon sign as he fretted about the evil rich.He died a few years ago the same jealous.bitter man.

The wealthy man gave far more than anyone will ever know in this life.His mistake was not giving to the very jealous man that harped on the greedy,evil rich.I know a portion of what he gave as I was treasurer for a few years.

This very petty man,SS teacher no less informed our class because of this man's greed his children were no longer in the church.After all,everyone knew he could not afford to send them to the academy and they got in with a bad crowd in public school.

The wealthy church member educated many thru the academy.No one person will ever know how many. Some of it came out among old classmates of mine years later.

The children of the jealous man were not helped because the father and they were not willing to put their best efforts forward and help themselves as far as possible.

The wealthy man used to go on his own private mission trips into Mexico,he and his family would load trucks with lumber and all the supplies they could and go build chruches and homes.

The jealous man stayed behind and whined about the greed of some people.

I am not sure how you would know what Glenn Beck does with his money anymore than I would.

But your continual judgement of those that have more than you tells it's own story.

It is Glenn Becks and Sean Hannity's business how they spend their money.

I have a very wealthy brother and I have little doubt you would exhibit the same scorn towards him if you knew him as he still has more than you.Never knowing or caring the countless children he has helped educate

or the others in trouble he has helped

[Dr. Shane]

I am not sure how you would know what Glenn Beck does with his money anymore than I would...

It is Glenn Becks and Sean Hannity's business how they spend their money.

It is a matter of public information. There is no secret to knowing how much they make, where they make it and how much they give to charity.

I have absolutely no problem with people making as much money as they can, as long as they do so legally and ethically. I do not favor any kind of legislation that would cap anyone's income. I was against those that wanted to stop bonuses to the workers at financial institutions after the financial crisis of 2008.

My issue with Hannity is that he claims to be running a big charity for the troops. He has never served in the military himself but makes himself out to be a big supporter of our Armed Forces. Yet less than 20% of the proceeds from his charity go to where it should. It is all legal but hardly ethical. He comes out looking like phony baloney and plastic bananas.

[Dr. Shane]

It would not matter a hill of beans whether legal or illegal.

Of course it would matter. If he was guilty of fraud he would probably end up losing both the radio and TV shows and do some time in prison. No laws were broken nor is he accused of breaking any laws. He is just guilty of running an incredibly inefficient charity.

[Dr. Shane]

Originally Posted By: Shane

...only a small percentage of the proceeds actually go to charity.

That's true with virtually EVERY charity.

Typically at least 75% of the proceeds will actually benefit the charity. I think some, like the Salvation Army, are actually above 90%.

[bonnie]

Originally Posted By: bonnie

It would not matter a hill of beans whether legal or illegal.

Doesn't make any difference as far as how hard the media would be after it and you know that

Of course it would matter. If he was guilty of fraud he would probably end up losing both the radio and TV shows and do some time in prison. No laws were broken nor is he accused of breaking any laws. He is just guilty of running an incredibly inefficient charity.

[bonnie]

Typically at least 75% of the proceeds will actually benefit the charity. I think some, like the Salvation Army, are actually above 90%.

Wonder how much of Ingathering money went to it's stated purpose.Seems there was a little problem there.

Adra,while doing a lot of good things spends how much on salaries and administrative costs. Wasn't there a very necessary tennis court or something rebuilt so the sun wasn't in their eyes while playing. It has been quite a while since I read it so not sure as to all the details.

Let's not forget our ousted GC president while we are at it comparing to the Salvation Army etc

[Dr. Shane]

Here is a list of charities by Forbes. One can see most are well above the 75% threshold.

Forbes Charity List

As far as ADRA is concerned.... Adventist Development and Relief Agency

Quote:

Charity Navigator has given ADRA a 4-star rating, one notch higher than better-known American Red Cross. As a 4-star earner, ADRA was in the company of well-known charities, including CARE, Doctors without Borders, and Food for the Hungry. The 4-star rating is described as "Exceptional: Exceeds industry standards and outperforms most charities in its Cause." The Agency used 92% of its expenses towards relief efforts, 7% in administrative costs including salaries, and 1% went toward fundraising. In 2009, ADRA lost its 4-star rating on Charity Navigator as government funding had declined dramatically over the previous three years, making the agency's overhead costs much higher than its allocation of private donations to programs.

[bonnie]

Here is a list of charities by Forbes. One can see most are well above the 75% threshold.

Forbes Charity List

As far as ADRA is concerned.... Adventist Development and Relief Agency

Quote:

Charity Navigator has given ADRA a 4-star rating, one notch higher than better-known American Red Cross. As a 4-star earner, ADRA was in the company of well-known charities, including CARE, Doctors without Borders, and Food for the Hungry. The 4-star rating is described as "Exceptional: Exceeds industry standards and outperforms most charities in its Cause." The Agency used 92% of its expenses towards relief efforts, 7% in administrative costs including salaries, and 1% went toward fundraising. In 2009, ADRA lost its 4-star rating on Charity Navigator as government funding had declined dramatically over the previous three years, making the agency's overhead costs much higher than its allocation of private donations to programs.

Refresh my memory,who was it that paid for the tennis court? I am sure aside from that ADRA does much good.It should,isn't it owned and operated by the church?

Do you remember what happened with ingathering?

I don't think freedom alliance is owned by Sean Hannity is it?

[Dr. Shane]

I don't see how anyone could possibly defend Sean Hannity. And then to compare his immoral money grab to the Lord's work being done by God's remnant is unconscionable. The bride of Christ ministering to the weakest in the human family is hardly comparable to the ideological money grab of Sean Hannity and Oliver North.

[bonnie]

I don't see how anyone could possibly defend Sean Hannity. And then to compare his immoral money grab to the Lord's work being done by God's remnant is unconscionable. The bride of Christ ministering to the weakest in the human family is hardly comparable to the ideological money grab of Sean Hannity and Oliver North.

I have no idea if that article is true.You have decided it is.

You have decided Glenn Beck is a greedy man.That you have no idea unless you know how he spends his money as I don't.The gospel according to Shane is not always correct. Had there been any real teeth to the story it would have been all over every media outlet in existence.The fact that it wasn't makes me question just how true it is.

I admit to having only one dealing with The bride of Christ ministering to the weakest in the human .

A young unmarried mother to be,desperate and without family.I talked with a representative of ADRA to see if any help at all was available.I was told typically"we send those types to the Salvation Army because they may be running a scam and sell whatever is given to them or return new items to the store".

I was able to arrange help with a couple of others and then contacted a private-non-religious local charity. One who gives 96% of donations to the care of others.I did not hear one word about sending them to the Salvation Army or that they may sell what they are given because it is a scam.

How Sean Hannity spends his money is something you do not know or Glenn Beck or any other wealthy party you have a ax to grind with.

What you know for a fact is how you spend yours.You have not been called upon and given information on others.

I don't knoww how he spends his and really don't care.I will let you take care of their salvation

[Dr. Shane]

I have no idea if that article is true.You have decided it is.

[bonnie]

It is a matter of public record. There really is no guess work involved.

[bonnie]

Just a little side note before you feel to sad about my lack of giving.

I know you think you have this ability to know all concerning those you look down on but you haven't a clue what I do or don't give.

I am quite certain my bible does not say Shane says you must give thru ADRA or you are failing

[Dr. Shane]

you sound so righteous,not a little self serving is it...My life is all about ministering to the weakest of the human family Generally those that spend a great deal of time bragging do so because that is all they have

Oh, please do not mistake my statements as bragging. Anything good I do is only the Lord using me as His vessel. I am wicked to the core. All of my works are as filthy rags. The only good I can do is that which the Lord can do through me. When I share with others things the Lord has done through me, I am trying to share the joy God has given me and hopefully inspire others. If God can use this evil vessel, He can use anyone. Let all praise be given to God - I am worthy of none.