There were a few RED flags for me as I watched the story: #1 there were three charities and they were ALL related. #2 The CEOs made more money in their salaries than they issued towards mission based activities! #3 They ALL did not want to answer any questions, in fact one guy flipped the reporter off as he was driving away!
There is a reason why organizations are gifted to obtain tax exempt status and that reason is to do good and charitable acts for the community that you are serving. It's really sad as a nonprofit consultant to see this because there are so many organizations that I know of that are struggling and could have used that money to benefit so many people.
Truth be told, if this money was used properly for their target market, so many people could have been helped.
It's scuzzbuckets like these people that mess it up for hardworking people on the front lines doing really good, impactful work for the community. Unfortunate circumstances like this make it more difficult for reputable organizations to get the financial support that they need.
Here's the video:
courtesy of CNN