September 15, 2019

Yele Haiti Names RSM McGladrey as New Accountants

Thumbnail image for alg_singer_wyclef-jean.jpgAre you paying attention Fortune? After last week’s controversy around the finances of Yele Haiti, RSM McGladrey has been appointed to administer the donations pledged to Wyclef Jean’s foundation.

Yele Haiti has also retained Grant Thornton, who filed the three years of tax returns for the foundation just last August.


All the hubbub was over the foundation less than timely filing of its tax returns and paying expenses on the behalf WJ’s production company.
Not filing tax returns is one thing but there is some debate over whether the payment of expenses is actually anything to worked up over:

John Colombo, a University of Illinois law professor specializing in tax-exempt organizations, said tax laws permit such fees.
“If you told me the organization raised $1 million and it all went to him, then I would have some issues,” Colombo said. “Paying him an arm’s length salary for services he actually performed just isn’t a problem.”
But Alvin Brown, a tax lawyer who runs the site IRSTaxAttorney.com, said such transactions were “scary” and “could be viewed as fraud.”

“Viewed as fraud” isn’t the same as “is a fraud” but we after the last week, Yele Haiti has heard worse.
Wyclef’s Haiti Charity Gets New Accountants [AP]
Earlier:
We Knew Accounting Firms Were Helping Haiti

Thumbnail image for alg_singer_wyclef-jean.jpgAre you paying attention Fortune? After last week’s controversy around the finances of Yele Haiti, RSM McGladrey has been appointed to administer the donations pledged to Wyclef Jean’s foundation.

Yele Haiti has also retained Grant Thornton, who filed the three years of tax returns for the foundation just last August.


All the hubbub was over the foundation less than timely filing of its tax returns and paying expenses on the behalf WJ’s production company.
Not filing tax returns is one thing but there is some debate over whether the payment of expenses is actually anything to worked up over:

John Colombo, a University of Illinois law professor specializing in tax-exempt organizations, said tax laws permit such fees.
“If you told me the organization raised $1 million and it all went to him, then I would have some issues,” Colombo said. “Paying him an arm’s length salary for services he actually performed just isn’t a problem.”
But Alvin Brown, a tax lawyer who runs the site IRSTaxAttorney.com, said such transactions were “scary” and “could be viewed as fraud.”

“Viewed as fraud” isn’t the same as “is a fraud” but we after the last week, Yele Haiti has heard worse.
Wyclef’s Haiti Charity Gets New Accountants [AP]
Earlier:
We Knew Accounting Firms Were Helping Haiti

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

RSM US Revenue Rose to $2.4 Billion In FY 2019

So says the RSM US 2019 annual report: That’s a 14% increase over the firm’s FY 2018 revenue of $2.14 billion. RSM’s fiscal year ends on April 30. There’s not a whole lot more to add because RSM doesn’t usually send out glitzy, congratulatory press releases on its year-end revenues like EY did today. But […]