Paul L. Caron
Dean


Wednesday, December 23, 2009

The Impact of the Tiger Woods Scandal on His Charities

Tiger Woods Foundation (Page 1)

Today's Orange County Register has a great article on the impact of the Tiger Woods scandal on his three charities [click on the links for the latest Form 990 for each]:

From Tiger Woods' Charities Raised $50 Million. What Now?:

There are actually three nonprofits bearing Woods’ name, as far as the Internal Revenue Service is concerned, though they are perceived as one by the masses. Two have piled up assets worth more than $70 million -- far exceeding what they spend in a year -- but officials say there are good reasons for piling up cash. ...

Nonprofit No. 1: The Tiger Woods Charity Event Corp. It’s not the one you’ve heard of, but it’s the Iron Giant that raises (and spends) the most money on those glitzy events that cost tens of millions to mount. In 2008, revenues were $36.2 million, and it spent $32.7 million mounting the star-studded AT&T National Golf Tournament, Chevron World Challenge Golf Tournament, Tiger Jam Benefit Concert and Tiger Woods Learning Center Block Party. At first glance, things look good: 95% of spending was on programs -- considered the charity’s core mission -- far more than the 75% charity watchdogs look for here. But that’s because the cost of throwing these expensive events were counted as core program spending -- part of the charity’s main mission -- and there are critics of that approach.

Nonprofit No. 2: The Tiger Woods Foundation. This is the one you hear about, which gives out grants and scholarships seeking “to empower young people to reach their highest potential by initiating and supporting community-based programs that promote the health, education and welfare of all of America’s children,” say its tax returns. It reported revenues of $10.6 million in 2008; expenses of $6 million; and has a nice cushy nest egg of -- get this! -- $45.5 million. 82% of spending was programs, and it gets four of four possible stars from Charity Navigator.

Nonprofit No. 3: The Tiger Woods Learning Center. The proudest moment in Foundation history took place on February 10, 2006, as Tiger Woods was joined by former President Bill Clinton, First Lady of California Maria Shriver, and Southern California students, teachers and community leaders for the dedication of the Tiger Woods Learning Center (TWLC), an innovative youth-education facility located in Anaheim, California,” says the organization’s tax returns. “The much anticipated event served as the culmination of a four-year, $25 million campaign to transform Woods’ dream of creating an educational center to inspire and support the career exploration of young people.” Revenues in 2008 were $4.4 million, expenses were $3.9 million, and net assets were $25 million. It funneled 86 percent of spending into programs.

https://taxprof.typepad.com/taxprof_blog/2009/12/the-impact-of--1.html

Celebrity Tax Lore, Tax | Permalink

Comments

if I read this correctly, it's having no impact whatsoever. To which I say good! It shouldn't.

Posted by: Sydney | Dec 24, 2009 10:55:29 AM

Your graphs end in 2008. The scandal broke in at the end of 2009. I don't expect that we'll see the impact of this until the numbers come in for 2010. An Anecdote - I received the Tiger Woods golf game for the Wii for Christmas (we open Christmas eve) - and the missus told me I'm lucky she bought it before all this came out.

Posted by: Cowboy is a compliment | Dec 24, 2009 7:49:21 PM

This info is from the form 990 returns that charities are required to file with IRS annually, these show info from '06, '07 & ,08. They will not show any impact from these scandals because they are financial reports from prior years - I don't know if the charities are on a fiscal or calendar year for their finances. If they are on a calendar year, the 2009 filing should show a slight impact but the scandals only emerged at the end of the year and most of the fund raising events have already happened. The scandals may affect year end giving or the payment of outstanding pledges. Many major donors pay their pledges at the end of the year. So, the real impact will happen as people decline to attend these fund raising events in the future and with Tiger's image tarnished as it is, the impact could be substantial. Whatever the impact may be, it will start to show more on the 2010 filing and even more fully in 2011. And it usually takes 12 months of more after 990s are filed before they begin to show up on public websites.

Posted by: Conservadad | Dec 25, 2009 7:00:47 AM