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Jennie
Trad climber
Elk Creek, Idaho
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Apr 17, 2011 - 11:38pm PT
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I hope Mortenson accepts an appropriate channel to discuss and rebut these accusations. If not, he will ultimately be assumed guilty by the public.
Still…having Jon Krakauer accuse you of twisting the truth is like having Mel Gibson denounce you for racist rants.
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graniteclimber
Trad climber
The Illuminati -- S.P.E.C.T.R.E. Division
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Apr 17, 2011 - 11:41pm PT
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Read the 60 Minutes transcript.
http://www.cbsnews.com/stories/2011/04/15/60minutes/main20054397_page3.shtml
Daniel Borochoff is president of the American Institute of Philanthropy, which has been examining and rating charitable organizations for the last two decades. He says the Central Asia Institute's financial statements show a lack of transparency, and a troublesome intermingling of Mortenson's personal business interests with the charity's public purpose.
According to the documents, the non-profit spends more money domestically, promoting the importance of building schools in Afghanistan and Pakistan than it does actually constructing and funding them overseas.
Borochoff: What's surprising is that most of the program spending is not to help kids in Pakistan and Afghanistan, it's actually... what they call domestic outreach where he goes around the country speaking and the cost incurred for that, things like travel is a major component of that. You know, just advertising.
Kroft: What does that mean?
Borochoff: Sounds like a book tour to me.
His point is that when Greg Mortenson travels all over the country at the charity's expense, he is promoting and selling his books and collecting speaking fees that the charity does not appear to be sharing in. According to the financial statement, the charity receives no income from the bestsellers, and little if any income from Mortenson's paid speaking engagements, while listing $1.7 million in "book-related expenses."
Kroft: The $1.7 million that they spent for book-related expenses is more than they spent on all of their schools in Pakistan last year.
Borochoff: Correct.
Kroft: What do you say, I mean...
Borochoff: It's disappointing. You would hope that they would be spending a lot more on the schools in Pakistan than they would on book-related costs. Why doesn't Mr. Mortenson spend his own money (LAUGH) on the book-related costs? He's the one getting the revenues.
In fiscal year 2009, the charity spent $1.5 million on advertising to promote Mortenson's books in national publications, including a full page ad in "The New Yorker." And there are $1.3 million in domestic travel expenses, some for private jets.
Late last night (Saturday, April 16), we received a statement from the board of directors of the Central Asia Institute acknowledging that it receives no royalties or income from Greg Mortenson's book sales or speaking engagements. But the board says the books and the speeches are an integral part of its mission, by raising public awareness and generating contributions. And it claims that Mortenson has personally contributed hundreds of thousands of dollars to the organization.
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Ain't no flatlander
climber
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Apr 17, 2011 - 11:41pm PT
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Taking money out of kid's piggybanks so he can fly in private jets to tell stories...that's twisted.
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graniteclimber
Trad climber
The Illuminati -- S.P.E.C.T.R.E. Division
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Apr 17, 2011 - 11:45pm PT
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Krakauer: In 2002, his board treasurer quit, resigned, along with the board president and two other board members and said, "You should stop giving money to Greg."
Kroft: Did he say why?
Krakauer: He said, in so many words, that Greg uses Central Asia Institute as his private ATM machine. That there's no accounting. He has no receipts.
You Krakauer haters may be interested to know that Krakauer was an early fan of Mortenson and donated $70,000 personally.
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Lynne Leichtfuss
Trad climber
Will know soon
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Apr 17, 2011 - 11:50pm PT
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What a crazy, wild thread. I don't have enough time to ponder and dig up all the accusations and supporting facts because I have a pretty challenging life to live at the moment.
I am fairly certain Mortensen did start some schools and change the lives of people that would otherwise have been left behind. I am certain this can be documented.
If there are proveable accusations of wrong doing then Mortensen has to deal with it. When you do wrong karma and/or God will take the matter in their hands.
I for one think it's best to believe the best about others until totally proven otherwise.
Yo nay sayers out there.....tell me specifically WHAT THE HEY YO DONE to change the world for good lately. Tearing the throat out of another human doesn't count. Lynne
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Karl Baba
Trad climber
Yosemite, Ca
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Apr 17, 2011 - 11:55pm PT
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I was giving him the benefit of the doubt but matching up the report and Mortensen's rebuttal in the Bozeman paper seem to bring up a fishy smell.
Looks like insiders have bailed from CAI for years with complaints. That's fishy.
Then while Mortensen said he was just ambushed at the end by 60 minutes, they seemed to document numerous chances for him to respond and if they've been researching for months, he knew they were poking noses around.
So why refuse to talk? He was at a book signing, they offered to wait. That release that he was medically unable to respond is fishy too.
Doesn't mean he hasn't done more good for our relations with Afghanistan and Islam than the US government with less money wasted and fewer lies told, but perhaps that isn't the point.
But like JK said, (ken) "This guy isn't Bernie Madov. He has done a lot of good."
Sometimes people get out of hand, and into pocket, Unfortunate.
Peace
Karl
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blahblah
Gym climber
Boulder
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Apr 17, 2011 - 11:55pm PT
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Wow this is now front page story on cnn (I'd give a link but it's just to cnn.com, which which will change when you pull it up).
We only got one side of the story from 60 Mintues, but it wasn't a pretty one. If there's another side, I'd like to hear it. I will *sort of* reserve judgment, but I don't think I'd be getting my checkbook out for the charity, or buying the books, unless there's a creditable refutation.
Edit:
A few posts above:
Yo nay sayers out there.....tell me specifically WHAT THE HEY YO DONE to change the world for good lately. Tearing the throat out of another human doesn't count. Lynne
I haven't done jack but I'd applaud Krakauer and 60 Mintues for exposing what seems to be a scam artist.
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Ezra Ellis
Trad climber
WA, & NC & Idaho
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Apr 18, 2011 - 12:04am PT
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I haven't done jack but I'd applaud Krakauer and 60 Mintues for exposing what seems to be a scam artist.
He has built dozens of Schools in an area that is very hard to do so, He appears to have some accounting difficulties. He may have taken more money then some would consider appropriate,
As John Krakauer said "he's not Bernie Maddoff, he has done a lot of good!
The only thing Americans love more then having hero's is seeing them fall!
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Lynne Leichtfuss
Trad climber
Will know soon
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Apr 18, 2011 - 12:08am PT
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Judging others is something you need to be very careful about. Why do people so often want to believe the worst and not consider the best ?
Pretty incredible evening tonight. Get alone outside and observe the full moon, stars and the planet.
Mortensen has done good. If he has erred lets help him get back on the path.
You all commenting here, are you holding your lives up as perfect examples to follow ???
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Crimpergirl
Sport climber
Boulder, Colorado!
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Apr 18, 2011 - 12:11am PT
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In an odd twist Lynne, are you not judging some folks on this thread? Sort of ironic, no?
edit: this is not intended to be a mean-spirited comment. I hope it is not take as such.
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High Fructose Corn Spirit
Gym climber
Full Silos of Iowa
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Apr 18, 2011 - 12:20am PT
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Just watched the 60 Minutes piece. Seems something's fishy somewhere.
You've heard it before: Don't let the facts get in the way of a good story (or two).
Time will tell. Maybe.
.....
Looked like Krakauer's aged a bit. Time waits for no man.
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Gene
climber
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Apr 18, 2011 - 12:39am PT
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GM claimed that he was held against his will by Taliban. He published a picture of them. I find it pretty damn egregious he would knowingly put these fellows at risk by identifying them as Taliban.
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Ken M
Mountain climber
Los Angeles, Ca
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Apr 18, 2011 - 01:09am PT
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What a crazy, wild thread. I don't have enough time to ponder and dig up all the accusations and supporting facts because I have a pretty challenging life to live at the moment.
I for one think it's best to believe the best about others until totally proven otherwise.
Yo nay sayers out there.....tell me specifically WHAT THE HEY YO DONE to change the world for good lately. Tearing the throat out of another human doesn't count. Lynne
I'm not sure what you are asserting, here, Lynn. The next time you post about anything that you perceive as negative, should you expect to get a third degree about the worthiness of your life, as deserving to post?
Does this mean a child, who has not had a chance to make a mark on the world, should not be listed to when they witness something horrific? The don't DESERVE to be listened to? They don't DESERVE to post?
you may mistakenly believe that there is some joy that someone is taking in all this, but that is certainly not true. It is, in fact, tragic. Krakauer certainly make that clear that it was his opinion.
Did Greg start out with a plan to defraud contributors and take millions intended for destitute children? I can't believe that.
Did he eventually see an opportunity and go crazy for money? As you say, we'll see.
Will anyone ever trust him with contributions again? Never. But he'll have his tens of millions to console himself.
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Mighty Hiker
climber
Vancouver, B.C.
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Apr 18, 2011 - 01:18am PT
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Let's wait to hear the other side(s) of the story, before coming to conclusions. 60 Minutes is from all accounts good-quality journalism, but it's still 'gotcha' journalism. The questions raised seem more nuanced than can be thoroughly reviewed and discussed in ten or fifteen minutes on such a program.
This thread has re-raised some popular fallacies about non-profits and charities. (Former mostly serving members, latter mostly the public.) Sticking with charities (= 501 (c)(3)s), which it appears the CAI is, some of them are:
 They should spend an absurdly high proportion of their income on programs, i.e. helping others. A charity that claims that "all donations are spent on programs" either has a lot of income that isn't donated, a lot of expenses that are donated (in kind, volunteers), or is lying. Even the Franciscans and Poor Clares have overhead. And administrative expenses vary through the life of an organization - there are times that you have to invest a bunch of money, whether it's in a startup, infrastructure, fundraising, or otherwise. 20 - 30% isn't unusual for administrative expenses for a stable organization.
Nobody should be well paid. GIGO - if someone has the energy and experience to deliver results that advance the mission, why shouldn't they be well paid? If a non-profit finds a cure for cancer, why shouldn't its CEO be paid $20 million a year?
They should be perfect. Even if they have explosive growth, the organizational model, directors and employees must not err.
They should be assessed entirely on a corporate model. (Oddly, given the corruption and excesses of the second Gilded Age of the US.)
Greg Mortenson had what he says was an epiphany in 1993, before the Taliban and al Qaeda were on the US radar. His parents were Lutheran missionaries in Tanzania, so maybe he came by his dogood streak that way. It kind of looks like he was a 36 year old climbing bum in 1993, but then found a calling, slowly building his organization until 2001, when it took off. If the organization outgrew him, in terms of administrative and professional needs, it wouldn't be a big surprise. If he sometimes confuses his personal affairs and those of the organization, also no surprise - part of what is sometimes called "founder's syndrome". If he sometimes took a bit more credit than was perhaps due, immodest, but usually not a crime. If he managed to leverage it all so that he personally benefited (lectures), part of the American way, isn't it?
But Mortenson and the CAI do seem to have done a great deal of good in a part of the world that needed it. Maybe there's more to the backstory than we know, of course, e.g. government backing. Still, he has delivered.
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Ken M
Mountain climber
Los Angeles, Ca
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Apr 18, 2011 - 01:27am PT
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MH, when you start off by suggesting waiting for the other side before drawing conclusions, and then go on to discuss what sure sounds like a bunch of justifying excuses, that's not good.
By the way, charities MUST be measured like a corporation, because they ARE corporations, controlled by a series of laws. In Ca, that is the California Corporation Code. As the head of a non-profit for the last two years (501(c)7), I am familiar with the need for care.
The way you post, it sounds like someone misplacing change, or incompletely filling out some whacko form. We are talking tens of millions of dollars. Gosh, I think I'd notice if I had an extra 10 million in my bank account.
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Mighty Hiker
climber
Vancouver, B.C.
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Apr 18, 2011 - 01:31am PT
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I'm not making excuses, just commenting on what may have happened, from the perspective of someone who works with a lot of (Canadian) non-profits. The systems are fairly parallel.
It simply sounds like he may have gotten in over his head, in terms of lacking the administrative and financial skill and experience to run the CAI, or the sense to hire others to do it for him. Perhaps the IRS will now audit the organization, which might clarify what actually happened.
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John Moosie
climber
Beautiful California
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Apr 18, 2011 - 01:39am PT
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Nice post MH..
From the Bozeman Chronicle..
http://www.bozemandailychronicle.com/news/article_4d3125cc-67d7-11e0-b861-001cc4c002e0.html
The percentage of CAI money that goes toward schools is higher than "60 Minutes" assumed, he told the Chronicle, because during the last five years it has been building a "nest egg" of savings to make CAI sustainable into the future. The fund is exclusively for overseas teacher training, scholarships, new schools and supplies, he said. As of Friday, it had grown to more than $25.6 million, according to a financial statement CAI released.
It sound like a lot of the donations are being saved in order create an endowment so that the schools will be supported indefinitely. So this would be why not all the money is going towards building schools. They want to be able to sustain the effort once the schools are built. In his books, Greg has said that he was advised to make as much money as possible, as quickly as possible, once the first book came out and became popular. This was because the public is fickle and likely to stop donating. Its more glamorous to donate towards building a school in an area that has never had a girls school. Its less glamorous to donate towards keeping one open for years to come.
Plus he also said that it is very difficult to find the time to be on the ground in Afghanistan, and Pakistan, to find people to lead each new endeavor. So its hard to get each new project started. It isn't just about getting the money.
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caughtinside
Social climber
Davis, CA
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Apr 18, 2011 - 01:45am PT
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Haven't seen anything really damning. It costs more to live and travel in the US than it does to build a school over there. The hard part is getting the money over there.
And that the non profit pays for the travel for the book stuff? Those speeches produce money for the CAI. And the CAI... seems to be Mortenson, and people like his cult of personality and what he does. Which is fine.
There are a lot of hinky non profits out there. That spend 8 dollars out of every 10 on fundraising. This looks to me like a disorganized group trying to do some good.
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Port
Trad climber
San Diego
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Topic Author's Reply - Apr 18, 2011 - 01:55am PT
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Haven't seen anything really damning
Then why not talk to 60 mins? I think claiming that schools were built, when in fact they had not been, is pretty damning. It's the fundamental goal of the organization. I want to hear Mortisen's side of the story, which he doesn't seem to want to give.
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zeta
Trad climber
Berkeley
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Apr 18, 2011 - 04:20am PT
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I have to say I'm not at all surprised by this story about CAI. For a couple reasons:
-first: my brother and sis-n-law, both of whom work in Bozeman for non profits, have talked for years about CAI members regularly quitting because of having really difficulties with the lack of transparancy in the organization. The rate of attrition of staff has been ridiculously high for a while.
on the other hand: Those of us who have read his 2nd book know that Mortensen's way of managing the organization is 'not like a typical ngo' and the argument could be made that his style is perhaps uniquely suited for the really dangerous/remote areas he works in.
-second: I've worked in ngos for a long time in the Himalayas and also do my research very close to where Mortensen works (in Balti village on the India side of the LoC), some of his description of his school-building success I often found to be 'a stretch.' Building schools in rural Pakistan is great and I think he's done a great job with getting schools built. However, without additional support (teachers, trainings, etc.) and without support from the government or teacher's union, rural schools can only succeed so far. So many schools are empty b/c the teachers don't show up, the kids have to help w/ fieldwork, so in that sense, the 60 minutes segment pointing to empty classrooms is not a really fair accusation.
there's a lot of Supertopo folks who really want to give him the benefit of the doubt ('well he's got good intentions'), but non-profit charity work is so often not nearly as effective as people want it to be.
I see this so much in the Himalayas...especially well-intentioned climbers and mountaineers who want 'to help' people in mountain communities, but often don't do their research on organizations they're supporting. Or they decide to start an ngo and really have no idea how to do it well.
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