The Clinton Foundation is a slush fund,’ according to charity watchdogs.
The Clinton Foundation’s finances tangled that the country’s most potent charity watchdog added it to its “watch list” of troubled organizations last month.
In 2013, the Clinton Foundation received more than $140 million in donations and pledges but only spent $9 million on direct aid.
Most of the money went to administration, travel, salaries, and bonuses, with the most significant to family members.
The foundation claimed $30 million in payroll and employee benefits, $8.7 million in rent and office expenses, $9.2 million in “conferences, conventions, and meetings,” $8 million in fundraising, and nearly $8.5 million in travel on its 2013 tax returns, the most current accessible. The foundation does not pay the Clintons, but they do get first-class flights delivered by it.
In total, the organization declared $84.6 million in “functional expenses” on its 2013 tax return, leaving moreover $64 million in the bank — money that the organization claims are commitments rather than actual cash on hand.
More than 2,000 people, including relief workers and health experts worldwide, are supported by the tens of millions in administrative expenditures.
However, this is still considerably below the 75 percent spending rate on a reputable charity’s objective that nonprofit experts recommend.
Charity Navigator denied the Clinton Foundation a rating because of its “atypical business strategy,” which “doesn’t match our criteria.”
The foundation on Charity Navigator’s “watch list” advises potential contributors about investing in complex organizations. The Rev. Al Sharpton’s troubled National Action Network is among the 23 nonprofits on the list, reprimanding for failing to pay payroll taxes for several years.
In the wake of recent accusations that the Clintons sold influence for money, several charity specialists questioned the Clinton Foundation’s tax filings.
“It appears that the Clinton Foundation is a slush fund for the Clintons,” said Bill Allison, a senior fellow at the Sunlight Foundation, where radical Democrat and Fordham Law professor Zephyr Teachout served as an organizing director.
Eric Braverman, a friend of Chelsea Clinton’s from their time at McKinsey & Co., took over as CEO of the Clinton Foundation in July 2013. According to tax forms, he received about $275,000 in pay, perks, and a housing allowance from the foundation for only five months of work in 2013. According to Politico, his compensation climbed to $395,000 less than a year later.
According to Politico, Braverman abruptly quit the foundation earlier this year after a feud with the old Clinton guard over reforms he sought to implement at the institution. Braverman was replaced last month by Donna Shalala, a former Secretary of Health and Human Services under President Clinton.
According to tax forms, nine additional executives were paid more than $100,000 in 2013.
Following accusations that Hillary Clinton signed off on a transaction that permitted a Russian government firm to control one-fifth of all uranium production capacity in the United States while she was Secretary of State, the foundation came under assault last week. Rosatom, a Russian company, purchased a Canadian firm managed by Frank Giustra, a friend of Bill Clinton’s and a member of the Clinton Foundation board of directors who have pledged more than $130 million to the Clinton Foundation.
The organization also failed to disclose millions of dollars in foreign donations it received from 2010 to 2012 and is frantically preparing five years’ worth of tax forms after reporters raised concerns about the gaps last week.
The Clinton Foundation’s accountant did not respond to The Washington Post’s calls requesting clarity on its spending on Friday, and a representative for the organization declined to comment.