Shriners fundraising practices come under scrutiny
The New York Times reported on March 19 (free registration may be required to view the story) that many Shriner temples have commingled much of the money collected to support Shriners hospitals with money used for liquor, parties and members’ travel to Shrine events.
The national auditor of the Ancient Arabic Order of the Nobles of the Mystic Shrine largely confirmed an examination by the newspaper of Shrine records, minutes of Shrine meetings and interviews with current and former Shrine officials that documented lax accounting procedures and oversight under which money earmarked for the hospitals instead financed temple activities.
The report included:
- Of $32 million raised in 2005 through circuses, bingo games, raffles and a variety of sales, more than 57 percent went to costs such as liquor and expenses-paid trips to Shrine meetings and other events.
- Only 2 percent of the operating income of Shrine hospitals is raised by Shrine temples and member dues – most comes from the hospitals’ $9 billion endowment.
- According to a top Shrine official, poor cash accounting was “an increasingly common problem,” and more than 30 temples had reported fraud, such as theft, altered bank statements, padded payrolls and fake invoices amounting to as much as $300,000. In Texas, for example, four of 13 temples have lost money to theft, embezzlement and faulty accounting over the last five years, the newspaper reported.
The fraternal organization has blurred the line between fundraising for the hospitals and for member entertainment. “Money raised for the hospitals is being used to pay for parties and liquor and trips, and they know it,” Johnny L. Edwards, a former leader at Oasis Shrine in Charlotte, N.C., told the Times. “The way I see it, they’re stealing from crippled children.”
Shrine official Bob Phillips, the director of temple accounting at the national Imperial Council, said the Shrine has strict rules about identifying when a fundraising event is used to underwrite temple activities and when money goes to the hospitals.
