I'm a little skeptical about this counting as embezzlement, as I'm not sure of how much money a charity genuinely has to spend on actual charitable things. Some have said it's only like 10% of what they've raised? Also not sure if they have to spend the money they get that quickly or if they are allowed to invest it to some degree the way colleges do with their endowments (I think that's how that works but I am kinda retarded about these things).
Anyone more knowledgeable about this stuff?
They needed to spend at least 5% of their net average assets annually (which they did not). I do believe this will fuck them in the ass, along with multiple statements made by Jirard that they had been sending money to USFC and the Alzheimer’s group. Jirard also admitted to self-dealing, which is allocating money to non-qualified people. Saying he took some funds to reimburse himself is a no-no. If he hypothetically just said “hey I’m gonna give back myself x amount of money because I spent my personal funds on hotels, video games, travel” etc, he would have to actually have a organization tied to the open hands org to reallocate the money.
I think the biggest issue is how the donations were gathered. I do not think streaming and taking money across various states is legal.
Each state has solicitation statutes that private foundations must register with to soliciting donations. So private foundations, like the bill gates foundation, have physical fund raising in the state they operate in.
I do not think anyone was aware that Jirard was funneling the money to a private foundation. I think the assumption was that the money was going to a donor based organization.
Private Foundations are supposed to be financed by the founders alone, and grants are given from that single source.
This is a massive fuck up, and a glaringly obvious scam once people understand the different archetypes of philanthropic organizations.
Edit: a simple Wikipedia search of ‘Private Foundation’ and the first sentence will be a dead giveaway of how fucked the Khalil family is. No one was supposed to piece together that the IndieLand funds went into the foundation. This is going to be spicy.