- Report: #1036702
Report - Rebuttal - Arbitrate
Complaint Review: Designated Driver Alternative
Designated Driver Alternative2010 Roswell Road, STE 30-C6 Marietta, Georgia United States of America
Designated Driver Alternative Atlanta Fundraising Foundation, Bill Slagle Non-profit Scam Marietta, Georgia
*REBUTTAL Owner of company: Owner of Safe Ride apparently very jealous and envious of Designated Driver Alternative's success.
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Founded in 2008, Mr. Slagle created the nonprofit, solicited donations through fundraising events then never filed any of the required IRS paperwork until the IRS revoked his status 3 years later. Click here to see clear proof of AFF's revoked status on Guidestar. [continued below]....
In an attempt to salvage the organizations non-profit status (Buy more time to operate under the table) they filed 990 EZ's with the IRS for 2010 and 2011 (Click the links to see the filings for yourself) but notice the following;
On lines 2 and 3 of both the 2010 and 2011 returns they entered zero for "Program service revenue" and "Membership dues" respectively. DDA brings in thousands of dollars a week in cash and credit cards for program service fees in the form of rides completed, memberships sold individuals and partnerships sold to local bars and restaurants. Yet they report zero to the IRS?
The reason the people that are in charge of this group would enter this information incorrectly is because if they accurately reported the income to the IRS, it would be taxable as "Unrelated Business Income Tax" (UBIT). This is a tax charged by the IRS and the State (typically 15-30%) that non-profits have to pay if they make profit from business activities that are not related to their stated mission.
The AFF stated mission is "Good times for good causes". However, on the home page of the AFF web site it clearly states "Our latest project (project equals program in the eyes of the IRS) is aimed at keeping impaired drivers off the streets of Atlanta." To see the details of the so called "project" you have to click into the Designated Driver Alternative (DDA) web site. This earned income is 100% taxable because it does not further their mission. Since they lost their 501 (c) 3 status in 2011, technically the income should be taxable as a for profit.
Once at the DDA web site the top menu bar give choices for "Sponsors" and "Memberships" both are fee based offerings and have been in place since 2010. It is a known verifiable fact that numerous bars have been paying these fees for over two years. Call the sponsors yourself and ask.
On line 12, "Salaries, other compensation and benefits to employees" they list ZERO! How is this possible? How do they pay their bills has no other known job or source of income. They makes cash by collecting dispatch fees from the 30 + drivers that work for DDA and by Mr. Slagle doing rides himself. Mr. Slagle and his staff do not work for free. How do they get paid?
On line 13, "Professional fees and other payment to independent contractors" in 2010 he reports $500 and in 2011 he reports ZERO. Click here to view his schedule of independent contract drivers. How is this possible? If this link is dead because he changes it, screenshots of the page are included in this post.
It is costly and time consuming to organize and operate a legitimate non-profit that follows the rules. The foundation of the nonprofit organization is a proper board of directors. Any legitimate nonprofit has at a minimum three board members to insure fiduciary responsibility. Since you have to create a log in and password with the Georgia secretary of States office, a direct link to this info is not possible, so there is a screen shot of AFF's reported corporate structure. Mr. Slagle is listed as CEO, CFO and Secretary. This is what allows them to get away with fudging their numbers. There is no one but Mr. Slagle that has any over site over the money or that has fiduciary responsibility.
Avoid this questionable organization until this group straightens up. They need to play by the rules we all play by. They must pays the taxes we all have to pay.
This report was posted on Ripoff Report on 03/21/2013 11:16 AM and is a permanent record located here: http://www.ripoffreport.com/r/Designated-Driver-Alternative/Marietta-Georgia-30068/Designated-Driver-Alternative-Atlanta-Fundraising-Foundation-Bill-Slagle-Non-profit-Scam-1036702. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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