My Nonprofit Reviews
Review for STARKEY HEARING FOUNDATION, Eden Prairie, MN, USA
A major source of revenue for this organization is in the form of "donations" from people who receive hearing aids from them. The people receiving the hearing aids are told that they may deduct the amount of the donation from their taxes without consideration of the value of the hearing aids. This is tax fraud because the situation is a perfect example of a quid pro quo donation, in which the fair market value of what was received in exchange for the donation needs to be subtracted from the amount of the donation. They are well aware of what they are doing and the consequences of these actions and continue to operate in this manner. Also, take a look at how much money this organization is "donating" to other unrelated foundations. For example, the Elton John Aids Foundation has received approximately $1 million from them over the years that he has "volunteered" to play at their fundraisers. Also, under another conflict of interest situation, the majority of the expenses are for the purchase of hearing aids from the company that started the foundation, and not simply at the compan's cost, but a higher value, resulting in increased profit for the company.