The Georgia Secretary's office has opened an investigation into two related charities in Henry County, one of which claims to help foster children, following a Channel 2 Action News investigation that exposed serious questions about a children's care home without any foster children.
Records show the last foster child left the Noah’s Ark Children’s Care Home in March 2010, but the charity continued soliciting donations for five more years, taking in an additional $658,000 during that time. The home is located behind the better-known Noah’s Ark Animal Sanctuary.
“We have opened an investigation into this situation,” said Charities Division Director Ryan Germany with the Secretary of State’s office. “Our mission is just to protect the donors, it’s very important.”
The investigation will examine both charities, Germany said.
Charities have very specific rules for taking in money, and how that money is spent. They cannot tell the public one thing, then use the donations for something else.
“The biggest thing is using donor money for personal-type things, that’s a big red flag for us generally,” said Germany.
Three former Noah’s Ark employees who had access to financial records, told Channel 2 they saw too much of that going on, at the Animal Sanctuary and Children’s Care Home.
“Literally, I freaked out. I’m like, “Holy crap. I’m involved in a major, major scam,” recalled Christy Cunningham, who worked on the charities’ website.
She noticed Noah’s Ark was still soliciting and accepting donations for a children’s care home, even though it no longer existed.
State records show the Noah’s Ark Children’s Care Home closed in 2010, in response to financial failure. But federal tax returns show it’s brought in at least $658,000 in donations since then.
“That’s a huge ethical breach, it could be a legal issue as well,” said Sandra Miniutti, vice president of Charity Navigator, whose organization monitors nonprofits.
The watchdog website sees a number of red flags in the Noah’s Ark financials.
The Children’s Care Home got charity status in 1994, telling the IRS it was a residential group home for state-confiscated children.
“I have never misspent one penny. Not one penny. And I can prove it,” said Noah’s Ark Founder Jama Hedgecoth.
The founder admitted she has no foster children, but says the money has helped children.
The state is working on subpoenas for bank and credit card records, hoping to go line by line through the charities’ finances.
Germany says if the investigation uncovers criminal activity it will forward the case to Georgia’s Attorney General or local prosecutors.
“Georgians are very generous and we want to make sure their generosity is spent in a way that they are intending it to be spent,” he said.
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