Families claim foundation solicited often

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Families claim foundation solicited often
By Jennifer Brevorka, STAFF WRITER

Aug. 23, 2003 11:11 p.m.

ASHEVILLE - Uncovering corruption and fraud was expensive, and the
Children's Legal Foundation-Justice Coalition needed money for its work.

"What Alan [Beal] would do is say, `I don't have enough money to get back
to Charlotte,'" said Chuck Miller, a parent who sought the coalition's
advice with a DSS case. "Or he would lay a guilt trip on you about how the
foundation was short on cash."

The Millers were one of several families who handed over cash to Jay Gell
or Alan Beal for the foundation. Families' contributions to the foundation
ranged from $50 to $4,000 and all were told their donations were tax
deductible, according to the seven families interviewed for this article.

Neither Jay Gell nor Alan Beal, who are salaried employees of the
foundation, has another job, Gell said. The men donate their income from
savings to the foundation.

"At almost every meeting we held with [Beal] there was at least 15 minutes
spent on donations," said Sue Dhermy, who said her family donated about $4,
000 to the foundation. "He asked people for money for gas, food and other
expenses. And he usually got it in cash, no one got a receipt."

Gell disputed some claims about specific donations, saying people gave less
or didn't specify money for their case fund. When verifying other donation
claims, Gell said he couldn't confirm figures because the financial records
were with Beal.

"Your local area investigation started long before you think," Gell said in
an e-mail responding to questions for this article. "I refused any
donations, contributions, or compensation from anyone in this area until
this year. During the course of my involvement I, personally have paid
expenses and cost (sic) over $3,000 excluding my time and transportation."

In response to questions asking how many people donated to the foundation,
Gell said that families in 12 out of 235 cases donated money.

The foundation hasn't registered with the IRS for 501(c)3 status, a
necessity for federal tax exemptions and for contributions to be considered
tax-deductible.

But the two men repeatedly told families donations were tax-deductible, a
violation of IRS regulations, according to the IRS Web site and Asheville
tax attorneys with the Van Winkle Law Firm who were interviewed for this
article.

Gell also works with a second foundation, Preserve our Prosperity, which
aims "to remove courts from our marriages" and "stop the legalized
financial exploitation and rape of American Families," according to its Web
site.

While that foundation has recently received $40,000 in grants, Gell said in
an e-mail, the children's legal foundation is struggling for cash.

"One of our funding sources has temporarily withheld a $24,000 grant from
us," Beal wrote in a recent e-mail to a supporter. "We are financially
destitute at the moment. Money for traveling and basic operating expenses
is not there and I am working on other sources of funding as we speak."

Contact Brevorka at 232-2938 or .


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