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The Toronto Star Jan. 25, 2003. 01:00 AM Funds missing from charity's books Group spent little of donations on promised causes Legitimate Parkinson's charity fuming KEVIN DONOVAN STAFF REPORTER Generous Canadians who thought they were helping people with Parkinson's disease donated more than half a million dollars to a bogus federally licensed charity last year. Just $14,180 of the charitable contributions — less than 3 cents on the dollar — was spent on good works, according to the group's recently filed financial statement. The Parkinson's Support and Research Society raised the money with a hard-nosed telemarketing and door-to-door campaign across Canada. A recent Toronto Star investigation found that the charity exists to raise money — not perform good works. Over the past year, donors have been told their contributions would build a chain of adult day-care centres, fund research, lobby drug companies for cheaper medication and directly support those with the disease. Instead, the cash went into fundraising and administration, or is unaccounted for, according to the financial statement. "It's an insult to all of us who work in the Parkinson cause," said Mary Jardine, executive director of the legitimate, similarly named Parkinson Society Canada. "It's an insult to our volunteers, our researchers, our scientists, our neurologists, but most importantly to the people who live with Parkinson's." It's also an example of problems in Canada's charity sector. The federal government issues charity licences without background checks; bad charities are allowed to operate for years before the system catches up with them; the public has no guarantee that a registered charity is doing bona fide good work. The Parkinson Support and Research Society, based in Bedford, N.S., is still actively raising funds, popping up in various areas of the country. Much of the money raised came from Ontario. Donors have told of canvassers verbally badgering them at their door in an attempt to collect money. Canvassers have told blatant lies; one in Peterborough told prospective donors the legitimate charity's annual walkathon was cancelled, so they should give money to his. "The numbers are appalling," said Jardine, from the legitimate charity. She is angered that money that could fund research is being siphoned off. "People with Parkinson's are going to be quite devastated to know that $500,000 or more has gone to this organization. That money would fund two year-long research grants or fellowships through our national peer review program, which is the best research in Canada into Parkinson's disease." The Parkinson's Support and Research Society was profiled by the Star last November as part of Give and Take, an investigation into the trustworthiness of Canadian charities. At the time of publication, the society, now 18 months old, had not filed its first annual return. An examination of the return filed with the federal Charities Directorate in late December and made public two weeks ago shows that: The charity raised $529,514 between June, 2001, and June, 2002. Tax receipts were issued for $450,000 of that. The charity reports spending $308,610 on expenses, chiefly fundraising. Of that, $20,000 was spent on administration, $272,330 on fundraising, and just $14,180 on charitable work. The balance sheet does not balance. The document does not explain what happened to the remaining $220,904 donated during the year. The balance sheet shows assets of $85,650 (cash in the bank and fixed assets), but that still leaves $135,254 unaccounted for. The document also does not explain what type of charitable work was done for the reported $14,180. The charity does provide a brief statement on the filing: "We have been fundraising to raise the capital necessary to construct the adult care facilities that will provide the foundation for fulfilling our mandate. In addition we have been in the process of forming a collaborative research project and have conducted public awareness for Parkinson's disease." The charity's founders, former RCMP officer David Waldron and his daughter Kim did not return calls from the Star. Previously, the two told the Star their charity was doing good works that would not be publicized until a planned "unveiling" was held. Kim said she believes the legitimate charity is scared that her fledgling group will discover a cure first. The charity's Web site (offline for two months) had, for a year, promised the "grand opening" of an adult daycare centre in September, 2002. That never happened. The charity was set up at a time when its founders were low on cash. Neither of the Waldrons takes a salary, they have said previously. The recently filed documents show three people are paid, but neither the amount nor recipient is identified. David Waldron has previously blamed his poor financial state on the fact that he has Parkinson's. He said the charity was started for people like himself who are in financial distress because of the disease. While the Waldrons would not speak this time around, the Star did reach an employee of the charity named Russ Billard. A computer programmer, Billard says he has no clinical or research experience. Nevertheless, he said he has been busy trying to set up a "computer application to retrieve data on people with Parkinson's." He said he has several clients from his computer programming past who have the disease and he wants to collect their medical information, along with others. The plan, Billard said, is to "try and cross-reference the data and try to get a breakdown on this Parkinson's thing. Perhaps it's too much gluten in the diet." Billard, who used to work at David Waldron's former computer company (Cyber*net Communications), has a Web site called DemoMan (short for "demolition man"), which, among other things, features "Russ's Tatoo Parlour" with pictures of his own snake tattoo and tattoos belonging to others. He would not say how much he was paid by the charity. Complaints about the Parkinson's Support and Research Society have been received by the federal charity directorate and the Ontario Public Guardian and Trustee. By policy, the agencies don't comment on whether there's an ongoing probe. The federal charity directorate licensed the group without checking to see whether it was capable of delivering on its promises, something the Star found was typical practice. The Star's investigation has shown that, even if the government decides to shut down a charity, it typically takes three years to do so. During this time, the group can continue soliciting donations. Charity watchdogs such as the American Institute of Philanthropy suggest a good charity should spend at least 60 per cent of its money on good works, rather than fundraising and administration. The legitimate Parkinson Society Canada, which does fund research and care initiatives, devotes 54 per cent of its expenditure to good works and is aiming to raise that to 60 per cent in the next year or so. It raised $4.9 million in 2002. SOURCE: The Toronto Star http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout /Article_PrintFriendly&c=Article&cid=1035777031991&call_pageid=9683321 88492 * * * ---------------------------------------------------------------------- To sign-off Parkinsn send a message to: mailto:[log in to unmask] In the body of the message put: signoff parkinsn