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September 17, 2005
Farm Aid or Scam?
Well, I am glad I never donated:
Last year, Farm Aid donated less than 28 percent of its revenue, according to a review of the non-profit's records and policies. An organization should be giving away at least 65 percent of its revenue to be considered performing adequately, said Naomi Levine, a New York University expert on philanthropy.
The high-profile concert itself, which is also burdened by high expenses, provides only a small percentage of revenue to philanthropic causes.
Farm Aid, which has been more successful than any other group -- maybe even farmers themselves -- at advocating the need for family farms, dispensed $387,641 in 57 grants to local organizations in 2004. This was on total revenue of slightly more than $1.4 million, according to records filed with the Internal Revenue Service.
Evelyn Shriver, president of Bandit Records and a director on Farm Aid's board, said she was "shocked" that such a small percentage of the money raised went to grants last year.
"Farm Aid prides itself on the fact that the majority of the money goes to the grants," she said. "I truthfully don't know how to justify that they raised so much money and only gave that amount in grants."
By contrast, the Band Aid Trust, which like Farm Aid began in 1985, spent $144.1 million, mostly on African projects, between its first Live Aid concert in 1985 and when it shut down in 1991. The trust spent less than $2.5 million, or 2 percent, on administration and salaries, according to numbers released by the British organization.
Posted by Aaron at September 17, 2005 05:00 PM
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Comments
We lost my family farm-short on a $2200 second loan. Called Farm Aid up and they told us:
'You think we have money to throw around? We do not fund farmers."
Posted by: August at February 23, 2006 10:27 PM