14 DAY TRIAL // It’s always commendable when a celebrity uses their fame as a platform to raise awareness for a nobler cause by getting involved in or even starting their own charity foundation. The effectiveness of some has been put to the test and, as ESPN informs, proved nonexistent.
Lamar Odom has his own charity foundation, Cathy’s Kids, which he says he set up (in 2004) in memory of his mother, who died of cancer.
The foundation promises that all proceeds from donations go to cancer research but the Outside the Lines investigation, conducted by nonprofit watchdogs Charity Navigator, the Better Business Bureau and the National Committee for Responsive Philanthropy and cited by ESPN, shows that, in all these years it’s been in operation, it never donated a dime to cancer research.
If anything, the foundation seems more like a program for young athletes, judging by the direction the money took once it came out of people’s pockets, people who thought they were funding cancer research.
“Eight years of tax records reveal that Cathy's Kids never gave any grant money to cancer-related causes and that the charity primarily existed to finance two elite youth basketball travel teams. Of the $2.2 million [€1.7 million] raised by the charity, at least 60 percent – $1.3 million [€1.01 million ] – went to those AAU teams,” ESPN writes.
“The only paid executive was Jerry DeGregorio, now an assistant coach with the Golden State Warriors. He was Odom's high school coach and best man in his wedding to reality TV star Khloe Kardashian,” the publication writes.
“As secretary of Cathy's Kids from 2004 through 2011, DeGregorio made a median annual salary of about $72,000 [€56,009], while the charity operated at a loss since its inception,” ESPN adds.
The implications of starting a charity and refusing to handle it as such are grave, industry experts point out. Perhaps the biggest downside is that it does away with people’s trust in such foundations, which means legit charities stand to suffer.
Celebrities need to be aware of the kind of responsibility that goes with running a charity foundation and not violate public trust by mishandling donations or using the money for their personal needs and desires.
There is also, of course, the legal aspect to consider: if money is not spend as it should be (as stated in the charity’s mission), this equals tax evasion and is punishable by law.
Before publishing the findings of the investigation, Outside the Lines reached out to Odom for comment. Asked about DeGregorio’s huge salary when the charity was operating at a loss, he would only say, “It’s my money.”
For more on other questionable foundations run by athletes, please refer here.