Tom Brady’s charity funding mainly comes from another nonprofit. What does this mean?

[edjr 5,564]

https://www.si.com/nfl/2017/04/23/tom-brady-charity-funding-analysis

 

 

 

Did Tom Brady and Best Buddies founder Anthony Shriver devise a plan whereby Brady would perform fundraising services for Best Buddies and instead of Brady being paid—and taxed—for those services, Best Buddies would donate to Brady’s charity, Change the World, which in turn would donate to various schools, health care providers and other entities that have personal ties to Brady? If so, how should we view such a practice? These questions are the subject of an in-depth story by investigative writer Bob Hohler in Sunday’s Boston Globe. Among other key points, Hohler finds that Best Buddies has provided almost all of Change the World’s funding.

Here’s how I see it:

The underlying practice is legal, commonplace and transparent

As a starting point, Best Buddies donating to Change the World is both lawful and unexceptional. Charities often donate to other charities. Examples are found among other charities led by superstar NFL quarterbacks.

For example, according to the 2015 990 form filed by Peyton Manning’s “Peyback Foundation”, Peyback donated $7,500 to Catholic Charities of Tennessee, a nonprofit that provides various services to people living in 38 counties across Middle Tennessee. Likewise, per its 2014 990 form, Drew Brees’s “Brees Dream Foundation” donated $25,000 to Habitat for Humanity of Greater Baton Rouge, a nonprofit that builds homes for low-income families.

Best Buddies donating to Change the World is also subject to public notice, as donations made by charities must be publicly disclosed. Anyone, in fact, can read about those donations by reviewing a nonprofit’s 990 form. This form, which nonprofits must file each year with the Internal Revenue Service, provides considerable detail about nonprofits’ finances. Nonprofits’ 990 forms can be viewed online at GuideStar.com without charge.

As a broader point, the nonprofit world has its own economy and set of legal rules for entities that pursue defined purposes instead of profits. The basic gist of those rules is that in exchange for tax exemptions and reduced exposure to personal liability, nonprofits must reveal much more information to the public than do other private companies. Such disclosures include from where a nonprofit’s money originates and to where it goes, as well as the salaries of the nonprofit’s board members and five highest paid employees.

Also, as the NFL knows well, a nonprofit is not always a charity. For years, the NFL was classified as a nonprofit because the league itself—rather than its for-profit teams and subsidiaries—functioned as an organizing body. The NFL’s tax-exempt status was often criticized, but in reality, more than 99% of income generated by NFL football was taxed. This is because NFL teams and NFL subsidiaries, as opposed to the league itself, generated that income. The league, in fact, dropped its nonprofit status in 2015, most likely because the status didn’t offer an appreciable financial benefit and because—as detailed by sports accountant Robert Raiola of PFK O’Connor Davies—the league had to reveal the very high salaries of commissioner Roger Goodell and other top officials.

Brady has helped to raise tens of millions of dollars for Best Buddies

The arrangement between Brady and Best Buddies has led to massive amounts of charitable money that might not otherwise have been raised.

Best Buddies credits Brady with helping to raise $46.5 million since 2001, during which time Brady has acted as a volunteer. While some of that money might have been raised without Brady, Brady’s involvement has clearly aided an organization whose mission is to improve the lives of persons with intellectual and developmental disabilities. It stands to reason that such persons and their families are better off with Brady’s involvement. Setting aside more debatable aspects of the Brady-Best Buddies-Change the World arrangement, it’s difficult to ignore this positive outcome.

Paying for charitable work is not the answer

Brady could have avoided this controversy by volunteering for Best Buddies and requesting that Best Buddies not donate to Change the World. Such an arrangement would have avoided the insinuation that Shriver might be rewarding Brady for his services by directing Best Buddies to fund Change the World. Also, Brady clearly has other means, including himself, to fund Change the World. Instead, the relevant parties adopted a plan that invites skepticism.

Alternatively, Best Buddies could have paid Brady a wage or consulting fee to serve as a spokesperson or fundraiser. Neither Best Buddies nor Brady would likely view such a strategy in a favorable light. From Best Buddies’ perspective, Brady’s services would become an administrative expense and vulnerable to potential criticism. Indeed, critics who contend that nonprofits spend too much money on overhead and not enough on helping others often take aim at nonprofits’ administrative expenses.

Brady too would have regarded the prospect being paid as unattractive. He might even have declined to participate if such a condition was required.

For one, Brady would be subject to income taxes on any pay. This reason, however, is likely not very meaningful. Consider that Brady already pays income taxes on the more than $40 million a year he reportedly earns through the Patriots, endorsement contracts and business dealings. It seems unlikely that Brady being taxed on a comparatively modest salary of a Best Buddies spokesman or fundraiser would be an animating reason for him to deflect compensation to his charity.

Along those lines, while it’s unclear what Brady would be paid by Best Buddies, for his services it presumably would be less than the $168K a year that Shriver, as chairman, earns in base pay according to Best Buddies’ 2015 990 form. Put differently: if Brady pays taxes on, say, $45 million in annual wages, would he create a fake charity—particularly one that is subject to public disclosure—to reroute an additional six-figure pay that is then donated to his favorite charities? It’s possible, to be sure, but how likely is it, especially when all of the transactions would be public? Besides, such an arrangement might prove financially unwise for Brady: by having his charity donate to his favorite causes rather than donate himself, Brady loses a potential income tax write off.

Instead of being deterred by taxes, Brady would probably regard the idea of being paid by Best Buddies as unseemly or inappropriate. He is one of the wealthiest NFL players, especially when his reported net worth of $180 million is combined with the $360 million of his wife, supermodel Gisele Bündchen. For someone whose family wealth exceeds one half billion dollars, being paid by a charity would look tacky, at best.

Taking stock of Best Buddies funding Change the World

Best Buddies serving as the primary funder of Change the World naturally raises concerns, but whether those concerns are justified is harder to ascertain.

As Hohler details, Best Buddies has served as the main source of funding for Change the World. From approximately 2005 to 2015, Best Buddies provided nearly $2.3 million, or about 80% of Change the World’s funding. If Brady’s starter donation of $490,000 to Change the World is excluded from the math, the percentage rises to 98%.

Not only has Best Buddies almost exclusively financed Change the World, but Best Buddies has donated more to Brady’s charity than to other causes. For example, in its 2015 990 form, Best Buddies is shown to have donated $500,000 to Change the World, the most Best Buddies donated in that fiscal year and two and half-times the nonprofit’s second largest donation, a $200,000 gift to the Kevin Spacey Foundation. This arrangement can lead one to deduce that instead of being paid a salary by Best Buddies, Brady has directed would-be compensation to his charity. One could even insinuate that Brady is able to obtain more money—$500K a year—through this method than if paid a salary since his pay would presumably be less than that of Shriver, who as noted above earns $168K a year in base pay.

This practice, therefore, might be viewed as a tit-for-tat where Brady’s willingness to assist one charity is contingent upon that charity funding his own charity. If such an arrangement existed, Brady would seem less altruistic and more transactional than he might otherwise appear. An alternative arrangement where Brady volunteers for Best Buddies and Best Buddies does not fund Change the World would obviously avoid these questionable optics.

Also potentially problematic, some of the entities receiving Change the World’s money do not seem primarily engaged in humanitarian efforts and helping the poor and needy. As shown in Change the World’s 2015 990 form, donees include Brady’s private Catholic high school, Junípero Serra High School, which charges an annual tuition of nearly $20,000, and the University of Michigan, where Brady played from 1996 to 2000 and which reportedly has an endowment of about $10.5 billion.

Seems suspicious? Maybe—or maybe not.

First, the relationship between Best Buddies and Change the World is fully transparent. As mentioned above, Best Buddies and Change the World, like other nonprofits, file public records that anyone can read on GuideStar. There is nothing secretive or under-the-table. If Best Buddies’ donors and would-be donors object to Best Buddies funding Change the World, they have every right to walk away and donate to other charities. They can also demand that Shriver and other Best Buddies executives alter their donation strategy.

Second, the fact that Brady’s charity donates to entities of interest to Brady is not terribly surprising. It is, after all, his charity and he can direct it to donate to causes that he sees fit. The charities of Manning, Brees and other NFL players and celebrities do the same.

Third, most or all of Change the World’s donees could be viewed as engaged in pursuing positive acts for society. Take the donation to Brady’s high school. On the surface, a donation to a private high school might not seem like the most humanitarian act imaginable, but that same donation might help the school offer a scholarship to a financially needy student. In addition, Change the World has also donated to what can clearly be considered charitable causes. They include the Dana Farber Cancer Institute, which researches new treatment options and potential cures for cancer, and Foundation Rwanda, which pays school tuition for children born from rape during the 1994 Rwandan genocide. Brady also declines to draw any salary from his charity.

Fourth, as explained more fully above, a plot to create a sham charity in order to redirect a few hundred thousand would be unwise, particularly when the transactions would be accessible to public viewing. Also, Brady using his charity to donate denies him of potential income tax write offs if he made the donations himself.

Fifth, and perhaps most important, this practice has facilitated an arrangement whereby Brady helps to raise tens of millions of dollars for persons afflicted with intellectual and developmental disabilities. Brady’s involvement, which includes public service announcements, might offer other benefits, too, such as reducing discrimination faced by persons with these disabilities. If the relevant question is, “Is the world better off with this practice?,” there’s a good argument the answer is yes—even if the process to get there is not ideal.

 

 

 

Here is the Boston Globe (liberal) Hit piece on Brady

 

https://www.bostonglobe.com/sports/2017/04/22/tom-brady-gives-much-best-buddies-but-takes-millions-for-his-personal-trust/fX6A4ZqPaYAehmHllm9iLI/story.html

 

[NorthernVike 2,080]

Lots of werds, can we just assume he's cheating?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hey no neck, it's a focking joke.

[DankNuggs 305]

Trump payback

[Cdub100 3,380]

This is how politicians become millionaires. I don't like it, but as the article states, "The underlying practice is legal, commonplace and transparent"

 

​If that's the case WTF is this story about? Tomorrow are they going to write a story how Brady uses a cross walk to get to the other side of the street? "The underlying practice is legal, commonplace and safe. but it's not the fastest way to get from point A to B"

[drobeski 3,061]

Who owns the globe ?

[Patriotsfatboy1 1,432]

I read the article the other day when it was posted on the Globe. It seemed pretty dumb to me.

 

Brady does charity fundraising for Best Buddies. He asks that Best Buddies donate to his own charity. He isn't making money off of the deal, but he gets to dictate where some of his charitable work goes (his kids schools, his alma mater, etc.).

 

Are we supposed to be outraged that Brady is raising money for charity, but the money is actually going to ... charity?

[edjr 5,564]

 

 

Are we supposed to be outraged that Brady is raising money for charity, but the money is actually going to ... charity?

 

if you're a liberal - yes

 

that is what the world is now. everything is political.

 

Brady endorses Trump. He must now pay

[Hardcore troubadour 12,636]

If Brady is doing it I'm sure it's underhanded and a scam. If Eli was doing the same exact thing it would be another example of his upstanding charachter and his selfless works . Go team.

[Patriotsfatboy1 1,432]

 

if you're a liberal - yes

 

that is what the world is now. everything is political.

 

Brady endorses Trump. He must now pay

 

Eh. I am not buying that. Hohler must have his panties in a bunch because Brady wouldn't give him an interview. He will end up like John Tomase.

[TimmySmith 2,782]

Isn't this what 99% of all charities do? They don't all have boots on the ground.

[Sho Nuff 719]

 

if you're a liberal - yes

 

that is what the world is now. everything is political.

 

Brady endorses Trump. He must now pay

 

Yes...so much liberal outrage over this.

[Sho Nuff 719]

Isn't this what 99% of all charities do? They don't all have boots on the ground.

 

Not sure its quite the same (and note...I have zero issue with this as long as its disclosed).

Many charities will give to organizations that are actually doing this work.

This seems to be on charity...giving to another charity...then that charity sort of pays others to do things. Almost Best Buddies is the middle man.

[TimmySmith 2,782]

 

Not sure its quite the same (and note...I have zero issue with this as long as its disclosed).

Many charities will give to organizations that are actually doing this work.

This seems to be on charity...giving to another charity...then that charity sort of pays others to do things. Almost Best Buddies is the middle man.

The only thing that appears dubious is the possibility that both are writing off the same money.

[vuduchile 1,941]

https://www.si.com/nfl/2017/04/23/tom-brady-charity-funding-analysis

 

 

 

 

Here is the Boston Globe (liberal) Hit piece on Brady

 

https://www.bostonglobe.com/sports/2017/04/22/tom-brady-gives-much-best-buddies-but-takes-millions-for-his-personal-trust/fX6A4ZqPaYAehmHllm9iLI/story.html

 

It means another 4 game suspension is forthcoming

[Patriotsfatboy1 1,432]

The only thing that appears dubious is the possibility that both are writing off the same money.

 

First off, all of the money changing hands is being disclosed.

 

Secondly, the money that Best Buddies gives to Brady's charity is an "expense" on their book. They don't pay taxes on it due to their status. It would be the exact same as Brady "charging" them for appearance fees (and such) with him then claiming that money as income, but donating it as charity to offset to money. However, Brady just cuts out the middle man. Charities do it all the time.

 

I also noticed that a lot of people missed this little nugget:

Second, the fact that Brady’s charity donates to entities of interest to Brady is not terribly surprising. It is, after all, his charity and he can direct it to donate to causes that he sees fit. The charities of Manning, Brees and other NFL players and celebrities do the same.

[Drizzay 645]

The only thing that appears dubious is the possibility that both are writing off the same money.

 

Yea, that's a big no-no if that is the case.

[TimmySmith 2,782]

 

First off, all of the money changing hands is being disclosed.

 

Secondly, the money that Best Buddies gives to Brady's charity is an "expense" on their book. They don't pay taxes on it due to their status. It would be the exact same as Brady "charging" them for appearance fees (and such) with him then claiming that money as income, but donating it as charity to offset to money. However, Brady just cuts out the middle man. Charities do it all the time.

 

I also noticed that a lot of people missed this little nugget:

If one charity is giving 99% of it's raised money to another, it is reasonable to wonder why.

[Patriotsfatboy1 1,432]

If one charity is giving 99% of it's raised money to another, it is reasonable to wonder why.

 

That isn't what happened, though.

[TimmySmith 2,782]

 

That isn't what happened, though.

As Hohler details, Best Buddies has served as the main source of funding for Change the World. From approximately 2005 to 2015, Best Buddies provided nearly $2.3 million, or about 80% of Change the World’s funding. If Brady’s starter donation of $490,000 to Change the World is excluded from the math, the percentage rises to 98%.

[Patriotsfatboy1 1,432]

As Hohler details, Best Buddies has served as the main source of funding for Change the World. From approximately 2005 to 2015, Best Buddies provided nearly $2.3 million, or about 80% of Change the World’s funding. If Brady’s starter donation of $490,000 to Change the World is excluded from the math, the percentage rises to 98%.

 

Right, but that isn't what you said.

 

If one charity is giving 99% of it's raised money to another, it is reasonable to wonder why.

 

In this case, most of the money that Brady's charity is getting is coming from Best Buddies. Brady is spending his charitable time raising money for Best Buddies, which in its own statement indicates that he has raised $46M plus. Best Buddies has given Brady's charity $2.3M during that time.

 

So, it is not a matter of Best Buddies giving 99% of their money raised to Brady's charity. It is a matter of a Brady's charity getting a large chunk of its money from Best Buddies. It is also convenient for Hohler to ignore the $500k that Brady seeded the charity with. Sort of like "other than Mrs. Lincoln, how was the theater?"

[drobeski 3,061]

It means another 4 game suspension is forthcoming

that plan to stop the greatest backfired. I doubt they'll double up on the stupid.

[TimmySmith 2,782]

I forgot I was talking to a Pats fan about Tom Brady.

[wiffleball 4,640]

I schooled Troobs this a long time ago when that idiot Fiorina falsely accused the CF -

because she too didn't (know how to run HP) know how charities work.

 

There are specific legal terms for them, but they're basically bundled into two/three categories;

Some charities primarily raise money - then parse the funds out to various 'hands on charities'

that actually do the work. A lot of Oprah's, Bill Gates, etc. type charities dont' actually "build schools/clinics",

they give money to local NGO's that actually do the hands on work.

 

Then, by default, there are the NGO's that actually do the hands on work.

 

If you're an idiot, you can criticize any of them. To wit:

 

1) That so called charity didn't donate 92% of the money it gave away - it collected it from OTHER charities!

 

2) That charity didn't "build" shiit - they just write checks !

 

3) That so-called charity didn't contribute shiit! - They got their money from OTHER charities! In fact, some of THEIR employees got PAID to build schools and hospitals and stuff - THAT's not a charity!

 

This is a focking non-story from a focking idiot.

[Reality 2,710]

I forgot I was talking to a Pats fan about Tom Brady.

 

 

That said, this story rates extremely low on the give-a-sh!t meter.

[Patriotsfatboy1 1,432]

I forgot I was talking to a Pats fan about Tom Brady.

 

Throwing the gun this soon? You were wrong. No big deal. You do it all the time, so we are certainly used to it.

[Mungwater 588]

I know Brady is involved, so it's kind of redundant, but doesn't the charity name of "best buddies" seem a little too gay?

[wiffleball 4,640]

I know Brady is involved, so it's kind of redundant, but doesn't the charity name of "best buddies" seem a little too gay?

Goes well with Giselle's boob cancer charty - Breast Buddies.

[edjr 5,564]

I know Brady is involved, so it's kind of redundant, but doesn't the charity name of "best buddies" seem a little too gay?

 

 

Brady was Aaron Hernandez secrete lover?

[wiffleball 4,640]

BTW - Should it be pronounced:

 

 

CHAR

 

itty?

 

 

As its pronounced now, it should be spelt CHAIRity.

[Mungwater 588]

 

 

Brady was Aaron Hernandez secrete lover?

Secrete? Eew

[wiffleball 4,640]

Secrete? Eew

I get that's one of those words like "moist".

[TimmySmith 2,782]

 

Throwing the gun this soon? You were wrong. No big deal. You do it all the time, so we are certainly used to it.

It's a joke to try to discuss anything Pats with a Pats fan, even after all your success you are a bunch of thin skinned blowhards. Brady's charity received 98% of it's money from a single entity. Worth an investigation, even if we all love Brady.

[Patriotsfatboy1 1,432]

It's a joke to try to discuss anything Pats with a Pats fan, even after all your success you are a bunch of thin skinned blowhards. If you choose to ignore the initial money that Brady donated himself, Brady's charity received 98% of it's money from a single entity. Worth an investigation, even if we all love Brady.

 

If you want to "discuss", you might as well have the facts. I will ignore where your original statement was false and now you are backtracking. You left out the key part in bold. Let's say that they received 100% of their funding from Best Buddies. Still openly disclosed and perfectly legal, so what would we investigate?

[wiffleball 4,640]

If one charity is giving 99% of it's raised money to another, it is reasonable to wonder why.

Well then, United Way is bone-focked.

That's pretty much their whole purpose.

Not only is that what they SHOULD be doing

(and oftentimes don't - they're shady, but that's another story)

But there are several local charities in every community that can

accurately say that the overwhelming (90% plus) range come from United Way.

 

Geebus, this is dumb.

[cmh6476 751]

#charitygate

[tanatastic 2,061]

Have only read the topic but I can assure you the answer is a tax scam. It's always a tax scam.

[supermike80 1,285]

Brady could skin babies alive on this bored and he would be vehemently defended.

[rholio 339]

Sounds like a serious case of rats @ss.