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June 13th, 2012
11:03 PM ET

Company profits from charity donations

Editor's note: After Part I, watch Part II of Drew Griffin's investigation.

A charity that raised close to $27 million to help animals worldwide spent nearly all of that money on fund-raising expenses paid to a direct-mail company.

In addition, CNN found that the charity, SPCA International, misrepresented one of its programs called "Baghdad Pups" on its tax filings and hired an officer for that program with a questionable background.

In 2010, SPCA International owed $8.4 million to Quadriga Art LLCand its affiliated company, Brickmill Marketing Services, according to publicly available Internal Revenue Service 990 tax records.

Quadriga Art is one of the world's largest direct-mail providers to charities and nonprofits. It is the same fund-raiser hired by two veterans charities that spent tens of millions of dollars for its services – triggering a Senate investigation last month into whether one of the charities should retain its tax-exempt status.

That charity, Washington-based Disabled Veterans National Foundation, collected nearly $56 million in donations over the past three years yet paid Quadriga Art more than $60 million in fees,according to a CNN investigation into the charity's tax records.

Read more...

soundoff (4 Responses)
  1. laura jacobs

    Thank you for making people concerned about where their donations end up. We should all use Charity Navigator before giving. However, Quadriga seems to be a direct marketing company. the real question is why are the charities using them? Were they all tricked? Run away from any non-profit that can't get your money into the program. Run away from incompetent managers.

    June 14, 2012 at 8:12 pm |
  2. Robert

    Trickle down charity?

    June 14, 2012 at 3:42 pm |
  3. Lilly S.

    Please keep exposing the criminals behind Quadriga Art! I can't believe how many charities and donors have been ripped off by them..... Oh the American Greed..........

    June 14, 2012 at 3:37 am |
  4. madeline joyce

    SPCA INTERNATIONAL'S 2010 Tax Return states that Quadriga raised $8,232,344 for SPCAI and billed them $7,216,564 for a net to SPCAI of $1,015,780. Very suspicious!

    June 14, 2012 at 1:25 am |