Denver QB Russell Wilson’s charity, The Why Not You Foundation, spent more on employee salaries and benefits than on charitable activities, according to a report by Jason Wolf of The Arizona Republic (h/t: Yahoo! Sports).
“Wilson’s organization reported it spent almost $600K — just 24.3 cents of every dollar — on charitable activities in 2020 and 2021 and nearly twice as much, $1.1M, on employees and salary benefits,” wrote Wolf.
The spending included $200K for an employee who worked in the family office of Wilson and his wife, entertainer Ciara.
Scott Pickett, the charity’s chief financial officer and president of Wilson’s brand management company, West2East Empire, sent an email to USA Today on Wilson’s behalf.
“The foundation is built on working with third parties to raise money,” wrote Pickett. “But you would not see all of those dollars in the foundation’s tax documents.”
Wolf reported that from 2014-21, the non-profit accumulated $7.5M in revenue and $7M in expenses. $2.8 million went to charitable activities, all grants to other non-profits. In contrast, $4.2M went to fundraising and management and administration expenses, including three employees who received a salary of $1.9 million combined.
The activities may draw the IRS’ attention.
Andrew Morton, a partner at Handler Thayer LLP and chair of the firm’s sports and entertainment law group, told Wolf, “There is a high probability the IRS could conclude the salaries constitute excess benefits and levy substantial penalties.”
In 2020, Wilson won the NFL’s Walter Payton Man of The Year Award for his charitable efforts. These developments may stain his image.
