Rapper Wyclef Jean rebukes questions over his charity’s accounting practices

By AP
Saturday, January 16, 2010

Wyclef Jean defends his Haiti charity

LOS ANGELES — Haitian-born rapper Wyclef Jean spoke out Saturday in defense of his foundation after charity screening groups raised concerns about its accounting practices.

Jean said he was baffled by the timing and nature of criticism of The Wyclef Jean Foundation Inc., which has already raised more than $2 million to help earthquake victims.

“It is impossible for me to even comprehend the recent attacks on my character and the integrity of my foundation,” he said in a statement. “The fact that these attacks come as we are mobilized to meet the greatest human tragedy in the history of Haiti only serves to perplex me even further.”

Jean, a 37-year-old Grammy-winning artist, has been imploring followers to text “Yele” to 501501 to donate $5 to his foundation in support of Haitian earthquake victims.

The foundation, also known as Yele Haiti, intends to airlift medical supplies, water and Clif Bars to Haiti using a FedEx plane early next week, according to foundation president Hugh Locke.

An Associated Press review of tax returns and independent audits provided by Jean’s foundation showed that it was closely intertwined with Jean’s businesses.

Jean said he has never profited personally through his work with the organization and he has committed significant amounts of his time and money to the charity.

Discussion
January 28, 2010: 5:11 am

Without knowing enough information to form a strong opinion, giving the circumstances of his recent attempts on the matter and under these circumstance I believe that Wyclef will not face penalties based upon his connection with Haiti.

January 18, 2010: 9:33 am

Using the privileges granted to me under the first Amendment:

The way I interpret the IRC, Wyclef’s business association with his charitable 501c3 non for profit is likely to be a violation of the IRC. The language within the specific IRC dictates that founding/incorporating members of the 501c3 cannot “self-deal” for personal gain due the 501c3’s entity’s filing status. (https://www.irs.gov/charities/charitable/article/0,,id=96099,00.html Paragraph 3)

Without knowing enough information to form a strong opinion, giving the circumstances of his recent attempts on the matter and under these circumstance I believe that Wyclef will not face penalties based upon his connection with Haiti.

Therefore, people who donated money to his organization, assuming it is truly recognized by a secretary of state’s office with the appropriate documentation of 501c3 will be granted proper tax deductions for fiscal year 2010’s 1099 under the line item of itemized deductions: charitable contribution. Going forward Mr. Jean needs to be more cautious about potential conflicts of self-dealing and as I previously mentioned.

Please note in forming my opinion I disclaim any absolute assurance in actual outcome of future investigation of my interpretation of this matter as I am neither a judge nor an attorney. I have passed the CPA exam, have good standing as a member of the AICPA, and I am currently seeking admission in law school (hopefully Moritz College of Law). If you have any connections to any law schools within the state of Ohio and can help me gain admission I would be extremely happy. My personal e-mail is aaron.pike1@gmail.com.

God Bless the people of Haiti

Aaron Pike

YOUR VIEW POINT
NAME : (REQUIRED)
MAIL : (REQUIRED)
will not be displayed
WEBSITE : (OPTIONAL)
YOUR
COMMENT :