Sunday, June 26, 2011

Crime Stoppers - fiction and fact

Crime Stoppers for McHenry County ... does it exist?

In a year of asking questions, here's what I've learned. You shouldn't ask questions.

A year ago, Crime Stoppers for McHenry County (CSMC) was a member of CrimeStoppers USA, a national organization. One of he national association's requirements is that member organizations be tax-exempt organizations, properly registered with IRS.

There's a question on the application about that. The question is, "501(c)3 (sic) and state non-profit status valid and current? Yes? No?" CSMC must have answered it "Yes" or its membership wouldn't have been approved. There is no option for "Maybe?" or "Pending?"

The problem? IRS didn't have any record of CSMC. CSMC was not on the IRS Publication 78 list.

And today? CSMC is no longer listed as a member of CrimeStoppers USA. Want to check? Go to http://www.crimestoppersusa.com/ Wait for the site to load fully; then click on the "Programs" tab in the top row.

Crime Stoppers could still accept donations as a non-profit corporation in Illinois, but the donations would not be tax-deductible. Or could it? To receive donations, a charity in Illinois must be registered with the Charitable Trust Bureau of the Office of the Illinois Attorney General. CSMC is not. Previously, the AG's office told me an application had been started 24 years ago but never completed.

A letter to me from the national association indicated that the corporate books of CSMC may be in some state of disarray. How did that happen? Even in a volunteer organization, somebody has the duty, the obligation, the responsibility of being Secretary. The Secretary is in charge of the Corporate documents, such as the Articles of Incorporation, the By-Laws, the Minute Book, the Annual Report. And it is the President's obligation to run it in a business-like fashion and to seek legal advice as needed. CSMC has a lawyer, but CSMC must ask him to advise and to perform legal work, and pay him for it.

CSMC gets a lot of money from the McHenry County Circuit Court. Orders of a judge get signed, requiring those guilty of crimes to pay certain amounts to Crime Stoppers, of which there are several groups in McHenry County. Then the Court distributes the money CSMC gets the lion's share of dollars paid to Crime Stoppers groups in the county. And it refuses to say what it does with the money received.

How much is paid out in confidential tip rewards? Not much. In 2009 only about $3,400 was paid out. In three years CSMC received over $50,000 from the Circuit Court. What does it do with the rest of the money?

4 comments:

FatParalegal said...

It's a sad day indeed when we are suspicious of our Crime Stoppers chapter. Keep asking those tough questions, Gus!

Gus said...

You know? A year ago, if the sheriff's dept. would have just told me how to get in touch with Crime Stoppers for McHenry County, that would have helped; instead, it took a long time to get even a P.O. Box out of MCSD.

Then Helen Torscher took a month to reply to my letter, told me nothing helpful, and then ignored all future correspondence and requests.

So they want a battle? They are getting it.

John Lovaas said...

Gus-

While I have disagreed with you strongly on many issues in the past, I appreciate what you've done on following this issue.

While there is no guarantee that Internet information is current, I'm rather surprised to see that Helen is a Harris Bank financial advisor.

A financial advisor who was in charges of managing an organization (Crimestoppers) that has no Illinois charitable status, that has(apparently) lost its Federal non-profit status, and, if your characterization of your letter from the national Crimestoppers organization is correct, has generated doubts as to the nature and accuracy of its bookkeeping practices.

If I were a Harris Bank customer(and I am not) it would be worthwhile to give her a call. If I found out my financial advisor was in the same boat as Helen's, I'd be spooked as hell.

I would also ask that you scan and post the letter you received from the national Crimestoppers organization. Transparency should go both ways- and I doubt there is any proprietary or private information in it that can't be found on the Internet.

Gus said...

Thank you for asking, Mr. Lovaas. On March 24, 2011, the chairman of Crime Stoppers USA emailed me, in response to my follow-up inquiry. He wrote, in part,

"I have had several conversations with the treasurer of the McHenry County Crime Stoppers. They have done an exhaustive records search for some of their initial organizational paperwork and records. Unfortunately, and perhaps you can understand this, in any type of volunteer organization there is significant turnover from year to year, not only in board members but in the officer positions. Perhaps the records were maintained appropriately while the handoff from board member to board member did not take place as recommended, but at this time they are unable to obtain some of the incorporating paperwork for the McHenry County Crime Stoppers. During my conversations with their treasurer, I have provided them some insight as to go about obtaining copies of this information, if it was appropriately filed during their incorporation, or to make the appropriate filing now in order to become compliant. I understand this process is currently underway.

"Once this information is obtained, they will certainly be able to provide you with what is required by law. I have shared this information with both the board chairperson and the treasurer. However, as I mentioned in my earlier e-mail, this is a nonpublic, community board and is not required to provide meeting minutes or committee minutes based on open records requests.

... "My understanding is that the McHenry County Crime Stoppers program is working on remedying the noncompliance as to their incorporation documents and I would hope they would have that resolved soon."

At this point I have been unable to learn who the Treasurer is. Helen Torscher identified herself as Secretary on October 10, 2010, and I have seen her name since as President in a Crime Stoppers International Management document.