Someone found a copy of Hagele's tax return at
http://www.guidestar.org/FinDocuments/2 ... 9b42-9.pdf and published the following analysis:
http://groups.google.com/group/alt.lasi ... c79?hl=en&Jake Rivington wrote:
You removed your charitable/educational purpose and that donations are tax deductible.
If you are a 501(c)6, a business or trade organization, how can you possibly be a patient advocacy group? That's a blatent conflict of interest. It looks like the "educational" stuff on your websites (even if correct) is there to lure people into considering to do business with your membership. It has nothing to do with you incorporation status. So you have no educational purpose under the eyes of the Federal Tax Code and your papers of incorporation. Advertising as a patient advocacy group is misleading. You may want to run one, but you cannot advertise that under CRSQA.
Also, with you as the sole paid employee with a hefty salary (I mean, WOW for a NPO), it could be argued that CRSQA does business for your sole benefit--esp. since you publicly state repeatedly that you don't care if anyone choses a CRSQA doctor. That's inurement. What tangible benefit is your org giving then besides your salary? You appear to be in violation of several things, but not for not sending out 990s. You list no officers or trustees on your 990. You are sole officer financing $23,000 worth of travel!!!!!
What are the other expenses on line 43? $53,000? A company porsche
perhaps?
http://groups.google.com/group/alt.lasi ... f38?hl=en&Jake Rivington wrote:
It's not so much my opinion and characterization, but the legal requirements for a nonprofit. A Board and a minimum of 3 officers is required as a system of checks and balances to ensure that it's not for one individual's benefit and that the officers receive reasonable compensation for their services. Yet there are no other officers or Board members listed on CRSQA's 2004 form 990. Is there an active Board? As a nonprofit, CRSQA has public accountability.
http://groups.google.com/group/alt.lasi ... 5e6?hl=en&Jake Rivington wrote:
IRS definitions of a 501c6 can be found on pages 48-49 on this irs publication:
http://www.irs.gov/pub/irs-pdf/p557.pdf 501c6 is a business league that has no educational purpose and cannot offer taxfree donations.
A business league is created to improve business conditions. It is not pro-consumer. To say repeatedly that you don't care if someone choses a CRSQA certified surgeon or not is counter to the function of a business league. What do members get for their fees? Advertising for individual members in return for fees is not evidence of bettering business conditions. That's essentially what CRSQA does by providing a logo for their websites.
Furthermore, no part of the earnings can benefit an individual member. Why all the huge travel expenses of $24,000 for a single person, Glenn Hagele, his high salary (over $70,000 for a nonprofit with an employment base of 1) and what are the mysterious $51,000 of other expenses? That's $150,000 of expenses on 3 lines. 50% of net income pays for Glenn's salary and travel. Another 25% goes to some unnamed other expense.
It's possible that Glenn has all good intentions to educate people on Lasik and other refractive surgery issues, but to say that CRSQA is a patient advocacy group is disengenuous. And to have the misleading information on the USAeyes.org website for years about being an educational/charitable org that accepts tax deductible donations is outright misrepresentation.
Glenn genuinely likes to think of himself as a patient advocate. But he's really an advocate to make Lasik into a better business with more accountability. That's not a bad thing. Ultimately that will benefit the consumer with "better business" practices--but that's not patient advocacy. Patient advocacy doesn't work from the top down. I don't
think Glenn sees the difference.
"consider and choose with confidence"--CRSQA is all about marketing.
Just calling a spade a spade.
Jake Rivington wrote:
see the statement is attached for line 43, but not broken down. Do you pay the $10,000 in rent to yourself since CRSQA's address is the same as your home address? Do you also deduct that on your personal tax returns schedule C as well? Looks suspiciously like an individual member of CRSQA is benefitting monetarily from "renting" his house to CRSQA. And why is insurance so expensive?$15,000???? Does that insure you personally and parts of your house even when it is not being used as a "business"?
The "Service Accomplishments" state the number of visitors to the website. How does CRSQA justify $10,000 in rent for a web presence plus $4000 in internet fees? What service accomplishment is that for the business league designation from the 501c6 and the income from certification fees? How has CRSQA improved business conditions?
If you are primarily interested in educating the public, you need to change your status to a 501c3 and then the certification fees need to be declared as UBI (Unrelated Business Income) and you need to pay tax on them (UBIT). Your expenses and "accomplishments" are related to the educational purpose of the website. Your organization cannot be both, and you cannot benefit personally. I highly recommend you consult a NPO lawyer ASAP--esp. since you are throwing around accusations onto other
people who have failed to file forms correctly.
Something about glass houses comes to mind....
