For more than a year and a half many of us have questioned the veracity of AIDS Network’s boisterous claims that the ACT Ride returns 87% – 90% of its donations to support AIDS Network client and prevention services. Last year they proclaimed it loud and clear in their marketing of the Ride. Here is their precise statement:
“Your Contribution Directly Supports AIDS Network Clients….The money you contribute to a rider or crew member for the ACT Ride supports essential services provide by AIDS Network for client assistance and prevention programs. The ACT Ride dedicates the vast majority of funds toward services. After paying for expenses approximately 87% of all the money raised goes directly to funding the provision of our services.”
For more than eighteen months we’ve thought something was just very fishy about AIDS Network finances and how it spends ACT Ride donations. The numbers just never added up to what AIDS Network leaders promised the Riders. So we asked AIDS Network for an accounting of Ride finances. What we got was no explanation and a year of stonewalling.
Digging deep into the most recent audited financial statements of AIDS Network, we found the truth. On pages 16 and 17 of the AIDS Network 2008 audit is the required “Schedule of Revenue and Expenses by Function.” This Schedule shows how AIDS Network actually spent its special event revenue which is overwhelmingly ACT Ride donations.
Hoping that AIDS Network would come forward with this information we held off on reporting this unambiguous truth….until now. AIDS Network left us no choice.
Of $386,291 in total special event donations, $295,525 or 77% was from Ride donations.
Here is the shocking truth of how AIDS Network spent these donations in 2008:
Fundraising Costs $204,032 – 53%
Management costs $20,887 – 5%
Volunteer costs $36,462 – 9%
Education/Outreach $48,661 – 12%
Client Services $76,249 – 20%
Audits don’t lie. The same cannot be said for the leadership of AIDS Network.
This audit proves that in 2008 AIDS Network lied to the ACT Riders when it said that 90% of their donations were used to support AIDS Network prevention and client services. The audit proves that only 32% of Rider donations were used for these services.
What is shocking to everyone who has ever invested the time and enormous energy to complete the Ride and raise the funds – is that 58% of their hard earned donations are used by AIDS Network to cover their fundraising and management costs.
No wonder AIDS Network has stonewalled our requests for an accounting of the Ride. No wonder they were willing to violate the Donor Bill of Rights.
Wonder no more, because the truth has finally come out.
AIDS Network hidden the truth from ACT Riders for many years.
Shame on AIDS Network!
We call upon President Ellen Berz, Treasurer Tamim Sifri, Executive Director Karen Dotson, Chief Financial Officer Suzanne Gillingham, Development Director Dan Curd, Secretary Mary Vasquez, Vice President Gerry Haney and directors Michael Bruno,Timothy Lapp, Eldonna Hazen Kenneth Marks, Christina Ballard and Astra Iheukumere to immediately take the following actions:
Apologize
Hold a press conference to apologize to the Riders, Crew and the media for misleading them over all these years about the financial performance of the ACT Ride.
Tell the truth
Tell the Riders the truth – especially those who are planning to ride this year — that only 32% of their hard earned donations will go for AIDS Network client and prevention services.
Reconsider the Ride
Conduct a thorough assessment of the ACT Ride including expenses incurred, revenues raised and how Ride money is spent by AIDS Network to determine if it is a viable and ethical fundraising event. Then report your findings to Riders, Crew, the media and the public.
“Whoever is careless with the truth in small matters cannot be trusted with important matters.” Albert Einstein”
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