Out of Harm's Way

Crisp is Toast:
State probe forces animal-rescue nonprofit to close Queries $8M raised in wake of Katrina Sacramento Business Journal - March 30, 2007 by Kelly Johnson Staff Writer A local animal-rescue nonprofit that gained national attention for its work after Hurricane Katrina, sparking more than $8 million in donations, was shutting down this month amid a state investigation into how it used that money. Noah's Wish, which rescues and cares for animals in disasters, was preparing this week to close its El Dorado Hills headquarters. About a dozen workers have resigned or been laid off since late last year. The California Attorney General's Office has been investigating the organization since last summer, examining how Noah's Wish used donations that might have been designated for relief efforts in the hurricane-ravaged area. The probe led to most of the nonprofit's funds being set aside in accounts where they couldn't be used for other operations. The nonprofit contends the funds were used properly and said it is cooperating with investigators. The group received millions in donations after news stories showed its efforts in an area devastated by the August 2005 hurricane. Former Noah's Wish insiders allege those millions were intended to relieve suffering in the storm-battered zone but were improperly used for other purposes. According to documents obtained by the Business Journal from a former employee, an accounting firm hired by Noah's Wish to examine its books concluded that it would be impossible to conduct a reliable audit because so many records were missing from the period when the group and its volunteers were working on the ravaged Gulf Coast. Documents filed by the nonprofit or provided by the former employee indicated Noah's Wish had about $210,000 in revenue in the year ended June 30, 2005, and almost 40 times that much -- $8.4 million -- in the next six months. Expenses shot upward, too, from about $212,000 in 2004-2005 to more than $2 million in the last six months of 2005, including almost $400,000 to purchase vehicles. In early 2006, the group bought a storage building in East Alton, Ill., for $65,125 and leased office space in New York City, according to documents provided by the former employee. Terri Crisp, founder of the group and its executive director until this week, was paid $6,200 in 2004-2005, tax records show. The documents supplied by the former employee covering July through December 2005 indicated Crisp received compensation of almost $141,000. The nonprofit's board this week acknowledged the investigation on the group's Web site. "The California Attorney General has taken the position that certain funds donated to Noah's Wish during this period (of Katrina), and its immediate aftermath, are restricted and may only be used for the animal victims of Hurricane Katrina, rather than the animal victims of other disasters or for general disaster preparedness," a letter posted online said. "Noah's Wish disagrees ... but is working cooperatively with the Attorney General toward a timely resolution of the dispute." Noah's Wish has agreed not to use the disputed funds while the investigation is pending, and the nonprofit cannot continue its work without access to the money, the letter said. A spokesman for the state's top lawyer would not confirm or deny an investigation. Ralph Nevis of Downey Brand Attorneys LLP in Sacramento, who represents the group, would not discuss the nature of the inquiry. Founder was asked to leave board Staff members are being paid through April 11, but this week only the office manager remained at the El Dorado Hills headquarters to close things down over the next couple of weeks. At one point, the nonprofit had 15 employees working at offices in El Dorado Hills and New York City and from homes in other states. The three-person office in New York closed in January. "They've reduced the staff because of funding. It's everybody," Crisp said Wednesday. She said she's taking her remaining days as sick leave, but by Wednesday evening a message on the group's Web site said she was no longer connected with Noah's Wish. Crisp also served on the organization's board of directors from its founding in 2002 until February. She's no longer on the board, she said, "partly because it's a conflict of interest." The Attorney General's office "had asked for me not to remain on the board." Because she's no longer on the board, Crisp said she did not have the latest information on the investigation or details about what it covers. Investigators, she said, have not interviewed her and were working only through the nonprofit's attorney and its board chair, Amy Maher. Maher did not return calls Wednesday. Board members Lyn Kendrick, Gail Monick and David Lesser declined to comment on the investigation; another, Heather Hathaway, did not respond to a request for an interview. Asked about allegations that the nonprofit inappropriately used money, Crisp said, "I don't know of any misuse of funds." Lori Polk, chair of the Noah's Wish board during Katrina, left it the month after the hurricane. Before and after Katrina, she said, she voiced concerns about "the organization and the allocations of the donations we were collecting." She said she felt she was "fighting a losing battle trying to maintain my fiduciary responsibility to the organization." The group "did not make decisions based upon board approval," she said, and made "expenditures without approval." The former employee, who would only speak on condition of anonymity, said that "the amount of money that was spent by the organization was unbelievable." The Attorney General's authority over charities includes investigating the loss of substantial funds during one year, illegal use of funds, diversion of funds from their intended purpose and excessive amounts paid for salaries, benefits, travel, entertainment, legal and other professional fees, according to the agency's Web site. Raising money last month Noah's Wish was soliciting funds as recently as February. In a letter to potential donors, Crisp wrote the nonprofit had "made a concerted effort to only ask for donations when the need truly exists, and not become a pest with repeated appeals." Later, the letter said, "So why am I contacting you now? Noah's Wish is prepared for the next disaster, but lately this has become increasingly challenging." Because 2006 was a "fairly uneventful year," Crisp wrote, donations declined significantly. Tax documents for Noah's Wish obtained by the Business Journal reported revenue of $8.4 million, almost all of it from contributions, between July 1, 2005, and Dec. 31, 2005. Some $4.8 million was in unrestricted assets and $1.5 million in temporarily restricted assets at the end of that year, financial documents indicate. In June 2006, the accounting firm engaged to audit the books wrote the board that it could not express an opinion on the 2005 financial statements, according to documents provided by the former employee. "A significant portion of corroborating evidence such as vendor invoices, receipts, deposit slips and other supporting data were not maintained during the period that the organization was responding to the needs of animals during Hurricane Katrina. The records that remain are not sufficient to permit the application of auditing procedures that would be adequate for us to express an opinion on the accompanying financial statements," according to the letter from John Waddell & Co. CPAs. For the second half of 2005, Noah's Wish paid $405,948 in salaries and compensation, according to the Form 990 supplied by the former employee. Of that, Crisp received $140,900, while the second-highest compensation went to Sheri Thompson at $118,125, the tax documents show. If the numbers are correct, it appears the compensation for Crisp and Thompson is well above the norm for nonprofits of this size, said Ann Lucas, executive director of the Nonprofit Resource Center. The annual median base salary for the executive director of a nonprofit of this size is $130,000, according to the 2006 Compensation and Benefits Survey of Northern California Nonprofit Organizations, which is produced by the Center for Nonprofit Management in Los Angeles. Noah's Wish committed $1 million to the city of Slidell, La. for construction of a new animal control center; the old one was severely damaged by Katrina. The city has not received any of those funds, Slidell City Attorney Tim Mathison said.

About the Noah's Wish Investigation:
This is in response to the post about Terry Crisp's organization being investigated by California's Attorney General's office. This is what's posted on her website: Noah's Wish Board of Directors, March 26, 2007 We are writing to inform you that Noah's Wish is in the midst of an ongoing civil investigation by the California Attorney General's office concerning funds received by Noah's Wish during Hurricane Katrina. The California Attorney General has taken the position that certain funds donated to Noah's Wish during this period, and its immediate aftermath, are restricted and may only be used for the animal victims of Hurricane Katrina, rather than the animal victims of other disasters or for general disaster preparedness. Noah's Wish disagrees with the Attorney General's position with respect to those funds, but is working cooperatively with the Attorney General toward a timely resolution of the dispute. In response to the California Attorney General, Noah's Wish has set aside the disputed funds and agreed not to use those funds pending final resolution of the investigation. Noah's Wish is unable to predict when the matter will be resolved. Because Noah's Wish does not presently have access to the disputed funds, it is unable at this time to continue with its efforts to provide disaster preparedness services and volunteer training. We will provide you with an update once we have resolved this matter. We appreciate your patience and also wish to express our gratitude for all that you have done to support Noah's Wish in carrying out our charitable mission.

A bit misguided!:
Terri Crisp is a dinosaur and hopefully she has been replaced by more enlightened people. She randomly euthenized every feral cat she came across, proclaiming that ferals are not adoptable and are basically a scurge. Obvioulsy she has never heard of T.N.R. programs. I was very disappointed in this book and in Crisp's actions and can only hope people will NOT use it as a guide to animal welfare. It is just one uneducated womens accounts of her exploits.

Okay:
I thought it was an okay book, but as I was reading, I found myself skipping through all the blah blah blah to get to the actual animal stories. The stories about the animals were great, but you have to wade through a lot to get to them.

Must read for dog lovers:
Great book on the plight of unwanted and abandoned animals and the humans who care enough to do something about it by rescuing them and finding homes for these homeless pets.