Attorneys are Largest Beneficiary of Alicia Keys' Charity

Start up costs and executive salaries represent a big chunk of expenses, while the organization makes just eight substantial grants.  The web site still proclaims "Don't pay for bureaucracy pay for life." 

Last year we wrote about the lack of information about Keep a Child Alive, the celebrity charity that features endorsements by artists like Alicia Keys, Kanye West, Nas, Angélique Kidjo, Lennie Kravitz, and David Byrne.  This week a commenter pointed out that the organization has now posted an audited financial statement for 2005 on its web site, promising a full annual report for 2005 and 2006 by March of 2007 (but no sign of it yet).  I confirmed that there is also a Form 990.

The Form 990 tells us that the organization raised about $2.4 million in 2005, netting $2.1 million when you take out the $377,538 cost of a gala fundraiser.  It spent nearly $1.8 million, of which $1.1 million is listed under grants paid out. 

But the list of grants is a little peculiar.  The largest one, for $453,368, goes to a South African law firm for start-up costs relating to a clinic in Durban.  Next there is a $156,180 grant to the AIDS Healthcare Foundation (EIN 95-4112121 Form 990) in Los Angeles, which up until 2005 was the host organization for Keep a Child Alive. 

There are just seven grants totaling $413,783 to clinics and orphanages in Kenya, Rwanda, South Africa, and Uganda. 

But there are also odd grants of $7,500 to journalist Anne-Christine d'Adesky and $13,962 to Rikki Stein, a music manager who once represented Fela Kuti and now Rachid Taha (YouTube).  There is no explanation as to why these are considered grants. 

The staff consists of just two people, Leigh Blake-Sebastian, earning $144,000 as executive director and Elizabeth Santiso at $74,583 as vice-president. 

To me, this isn't too surprising for a start up organization.  The only problem is when a start up promotes itself as an alternative to the bureaucracy of other charitable efforts and then spends its money on lawyers—and then misrepresents it as a grant. 

The board of Keep a Child Alive consists mostly of heavy hitters in personal management of musicians, like David Wirtschafter, head of the William Morris Agency.  It looks like some smart people who know how to get certain types of things done.  But there is a big difference between throwing a gala and managing charity ventures in Africa.  I'm not sure this group understands what they've gotten themselves into.    

Comments

[Leigh Blake, President, Keep A Child Alive]

Dear Where Most Needed,
My name is Leigh Blake. I am Founder, President and CEO of Keep A Child Alive (“KCA”), a not-for-profit organization providing life-saving anti-retroviral treatment to children and their families with HIV/AIDS in Africa and the developing world. I’m writing to you about a recent post on your website titled “Attorneys Are Largest Beneficiary Of Alicia Keys’ Charity.”
In your post, you accuse KCA of making three improper grants. I was surprised to read these charges, because nothing could be further from the truth. Had you contacted KCA prior to posting these allegations, I’m sure we could have cleared up these misunderstandings without tarnishing KCA’s good name.
First and most importantly, you incorrectly concluded that a $453,368 grant to Shepstone and Wylie, was some sort of lump sum payment to counsel. In fact, lawyers often hold funds in escrow for their clients, and that is what happened in this case. Rather than going to lawyers, the $453,368 was used to purchase and renovate a building in Wentworth, South Africa, known as “the Blue Roof,” in order to transform it into a comprehensive AIDS treatment center. You can find more information about this center on our website at http://keepachildalive.org/projects_bac.php .
Second, you challenge two smaller grants made by KCA to Christine d’Adesky and Rikki Stein, describing them as “odd” and implying that they were improper. Again, your statements are inaccurate and any confusion on your part could have been addressed simply by picking up the phone. KCA funded Ms. d’Adesky to perform valuable research in response to the urgent nutritional needs of our grant recipients. Ms. d’Adesky’s report identifies the key elements of grassroots programs that successfully address the nutritional needs of our HIV-positive and HIV-vulnerable clients, and explores whether these approaches might be repeated elsewhere. KCA funded Mr. Stein’s proposal to create an African basketball team that would tour internationally, raising funds and awareness to combat the present AIDS pandemic.
KCA is fully committed to financial transparency so that donors and the public can see that their money is spent on saving lives, not funding bureaucracy. In the future, if you have any questions concerning how KCA is run, organized or financed, please just call us. If you wish to see additional documentation, just dial our number. That way, we can work together so that your next post about KCA is an accurate and positive one. Please post a retraction and/or correction attaching this letter as soon as possible to limit any further damage to KCA’s reputation that was caused by your inaccuracies. Thanks very much.

Yours in the fight,
Leigh Blake

[Rikki Stein, Executive Producer, Basketball For Life]

I'm adding a postscript to Leigh's Blake's response to your gossip mongering. As one of the recipients of funds mentioned in your blog, I wanted to further point out that the sum that you mentioned was actually part of a larger grant made by Edgar Bronfman Jr to Keep A Child Alive, specifically to support the Basketball For Life initiative that I am producing in collaboration with keep A Child Alive, to create a Pan-African basketball team.

Although I'm sure that a scrutinising organisation whose purpose is to ensure that charitable organisations keep to the 'straight and narrow' has its place, I would suggest that you spend more time and energy on authenticating your concerns of malfeasance prior to their publication, rather than jumping to erroneous conclusions. In most cases I'm sure that a simple phone call would provide you with a clear indication of whether further investigation was required. You otherwise risk to lose your own credibility and will be reduced to becoming idientified simply as sensationalists and scandalmongers, much as is exemplified in your piece on Keep A Child Alive, with little or no consideration for the damage such thoughtless and inaccurate reporting may have on the work of genuine organisations.

Yours sincerely,

Rikki Stein

[sharon fynn]

I find the artical regarding KCA very interesting. I belong to an organization that was suppose to be a beneficiery of the funding from KCA that has horribaly gone wrong in South Africa.Please Help..

[Anne-christien d'Adesky]

Dear Where Most Is Needed

I recently found this posting and wish to reply, as a receipient of KCA funding. I am grateful to KCA for funding critical research related to HIV and nutrition, for which I received a small grant in 2006. The results of the grant - an in depth report, can be found on the WE-ACTx website in the news or reports section: ("Overlapping Epidemics). I have since shared much of the 'best practice' programs that I learned about in doing this research and I have shared it with frontline programmers across the world. Next week, for example, an abstract of this work will be presented at the American Public Health Association meeting in Washington, DC.

KCA's support of my work and of WE-ACTx has been outstanding. In a brief three years since we began our HIV program in Rwanda, WE-ACTx has been able to provide free, comprehensive HIV care to over 5,000 Rwandans, including many children.

Next time, do consider contacting the sources for information. I believe it is critical to pay close attention to funding of AIDS programs and I support transparency. I always regret weak journalism, which is what I believe is reflected in your investigation of the KCA foundation.

Leigh Blake and KCA are saving a lot of lives in Africa. You might consider applauding their work and courage. If you dig deep, that's what you'll find: remarkable, commendable advocates.

Thank you.

Anne-christine d'Adesky

[Tania Nkungula Howlett]

This is way late in the game: I met Leigh Blake in 2004 traveling economy class on a very booked flight to south africa: She could have gone first class, like your post suggests but she and her son were packed in like sardines, like me- a commoner. I would suggest better research before you write harmful and damaging accusations.

[sudden memory loss]

Great gesture Alicia did, and so other famous people, now on this times of change and chaos on earth, lets hope more people help the cause.

[Anne Martin]

I made a small contribution to Alicia Keys' charity the night American Idol aired the show, My daughter also made a $10 contribution. Now I am receiving emails from the charity, and almost unsubscribed, due to the letter "Attorneys Are The Largest Beneficiary of Alicia Keys' Charity" when I started checking out the charity's paid employees. I checked further and found responses to the fact that one attorney receives $200K a year for his work. Considering what has been raised and the amount of legal work involved, plus the fact that an attorney doesn't come cheap, I believe this charity is doing a great service, and I will not unsubscribe. The Form 990 doesn't tell the whole story, obviously, and the letter that someone wrote questioning the improper use of funds was addressed here, and the answers to those questions have eased my mind. Thank you for helping to keep thousands of children alive.

[cheap jordan shoes]

Great, the inside of the many I expect things. Thank you to let me share the joy. Finally I wish you good health, success in work!

[ghd lisseur]

I must express my admiration for the kind-heartedness providing assistance to persons that truly need assistance with in this region. Your extremely own commitment to getting the concept up and down appeared to become wonderfully effective and have generally encouraged these like me to attain their dreams.

[Sac Longchamp]

I must admit that this is one great insight. It surely gives a company the opportunity to get in on the ground floor and really take part in creating something special and tailored to their needs.

[Gianmarco Lorenzi]

I must admit that this is one great insight. It surely gives a company the opportunity to get in on the ground floor and really take part in creating something special and tailored to their needs.

[Hogan Sito Ufficiale]

Nice one, there is actually some good facts on this blog some of my friends may find this worthwhile, will send a link, thanks.

[Louis Vuitton Outlte]

Traveling non-stop - now that would be a dream profession. Writing, photographing, eat, living... that's the type of traveling I want to pursue, not just facing corporate hotel rooms and eating room service. Wanderlust makes one feel ALIVE, or perhaps more detached because nothing feels like home. I can cure the sensation of a different life in my imagination, in those destinations where every sense of life is different. The sky would look different and the air would feel different on my skin. Encounters are adventures, not just brief shuffles on the street.

[Louis Vuitton Outlet]

In fact, more than two-thirds of grocery store shoppers buy on impulse. On the other hand, if you bring a list of things you need when you go shopping, you not only spend less time in the store, you also spend less money there. In his book The Millionaire Mind, Thomas J. Stanley notes that 84 percent of millionaires shop with a list.

[バーバリーマフラー]

東京電力福島第一原発事故で東電に巨額の損失が生じたのは、経営陣が地震や津波の安全対策を怠ってきたためだとして、株主らが東電に対し、歴代の経営陣に損害賠償請求訴訟を起こすよう求める書面を提出する方針を固めたことが分かった
請求額や対象者を検討した上で、今月中にも提出したいとしている。提出後、６０日以内に東電が提訴しない場合、株主代表訴訟を東京地裁に起こすという。
株主の一人は「このままでは、過去の経営陣の責任追及があいまいになってしまう。裁判で責任の所在をはっきりさせるべきだ」と話した。一方、東電は「内容を把握していないので、コメントは差し控える」としている。

[ティンバーランド]

ティンバーランド労組への配慮も顕著だ。会社員らの厚生年金と公務員らの共済年金の一元化問題では、公務員労組から支援を受ける議員が「人事院が来年２月に公表する会社員と公務員の退職金比較調査の結果が出るまでは、共済年金の特権的な上乗せ部分である職域加算の取り扱いを決めるべきではない」と主張。時間稼ぎをして法案の中身を骨抜きにしようという意図は明白だが、骨子案はあっさりとその主張を受け入れた。

　ティンバーランド首相は年末までに、社会保障分野と消費税増税部分をあわせた一体改革素案をまとめる方針だ。古本伸一郎党税調事務局長は１２日の党一体改革?税制両調査会合同会議で、「３１日の除夜の鐘のところまで、みなさんと相談していきたい」と強調したが、抜本的な改革は先送り必至の情勢だ。