pearls were in the NY times - MERGED

[hoipolloi]

Coming from an accountant who specializes in auditing not-for-profit organizations and preparing 990 tax returns. Based on my knowledge of this organization that was one of the worst prepared 990s I've ever seen.

I for one would be very interested to hear any more comments you might care to make.

My sense is that 990s can be gold mines of information, but one has to know how to read them. In this case, I don't see what I would consider outlandish salaries for either the board or other employees but staff salaries & benefits are about 37% of the total intake. Is that bad, good, normal?

TIA, jlbturtle!

[Edited for a bit of clarity]

[jlbturtle]

I'm not commenting on the outlandish salaries per say because like you said at least on the oustide they look somewhat reasonable. I guess I look at several things and think VERY sloppy bookkeeping among other things.

First of all very unusual to see a negative accounts receivable (on page 11)

What is included in other professional fees (on page 10) seems rather high to me

On the flip side accounting fees seem kind of low

Highly compensated employees are only those making over $150,000 per year (so that director shouldn't be marked as such)

Interesting that they have only have 20 employees but 1099 18 people (may not mean anything but I would want to know who else they are paying)

Not comfortable that they don't seem to have a policy in place that an independant BOD determines the CEO's salary

They didn't really describe who the grants they are giving go to, seems very vague to me

I'd question whether any of the sales they are making is really subject to tax as "unrelated business income"

I could go on and on (there were other things that concerned me), but I've already labeled myself as an accounting dork and I can't believe I just spent time analyzing this LOL, but since I do this on a daily basis, it is interesting to me.

I think its a combination of not great accounting and not great tax preparing but that's just my opinion. If I submitted this at work I'd probably get raked over the coals.

[jlbturtle]

I just have a sneaking suspicion that through their "grants to other organizations" they are probably receiving other money (or family members organization's) that we aren't aware of.

Obviously this is just my opinion and I don't know that for a fact. The return just didn't seem to be very transparent as much of them acutally are.

[emmiedahl]

I wonder if their grants are to their children's organizations.

[hoipolloi]

I wondered if their grants could be going to the so-called ministries in SE Asia & the Ukraine that they've reported on. Years ago, they used to have articles in the NGJ magazine about supporting this, that or the other missionary -- including Rebekah Pearl, when she was in PNG for a year.

Yippee! The NYT article has over 635 comments & rising - nearly all of them very negative about the Pearls!

ETA: Thank you, jbturtle, for elaborating on NGJ's 990. I'd love to have an opinion on some 990s for other religious non-profits I've seen over the years.

[camdendayton]

Another article: http://blog.sfgate.com/sfmoms/2011/11/0 ... -to-blame/

All the reporting looks to be from other media accounts.

[Buzzard]

I'll cross my fingers for an opinion piece calling for amazon to pull the book. Maybe from a psychologist or real minister?

[Austin]

Another article: http://blog.sfgate.com/sfmoms/2011/11/0 ... -to-blame/

All the reporting looks to be from other media accounts.

Mr. Pearl told CNN that he represents 230 million parents who practice corporal chastisement on children.

What's he talking about, 230 million parents? In the world? There's only 300 million people in the whole USA, and I doubt that 230 million of them are parents, let along parents who spank. Even if he's counting Canada, that still doesn't work.

[SamuraiKatz]

I skimmed the financial report. I'm surprised the Pearls have enough of a following to generate a million and a half a year. I noted that Rebekah was paid $163 in royalties. Since she was their experimental model...she deserves far more compensation than that! The other kids too, for that matter. After all, Mike and Debi continue to profit from the suffering heaped upon their children.

[thoughtful]

Thanks, jlbturtle.

Maybe Pearl can be dealt with based on shady finances and taxes.

Al Capone all over again.