Race Radio said:
I agree, Armstrong is talented in separating rubes from their cash....a modern day soapy smith. I would not agree that this is something to be praised as little of this cash goes to a good cause.
The vast majority of Armstrong public appearances are an effort to raise fund for the Lance Armstrong legal defense fund. He recently rode this event
http://www.pelotonia.org/ it was billed as a "Landmark event" for Livestrong.....but it really was a $100,000 in cash and $100,000 in NetJets vouchers for Lance.
There are blurred lines between Armstrong and Livestrong.org in their conduct of charitable operations.
It is for the IRS to enforce compliance of a public charity for ongoing exemption status. Possibly the IRS have Livestrong.org in their cross hairs with his conduct.
Livestrong has not published on its website the 2010 audited financial statements although, according to their 2010 Annual Report, these documents exist and were completed in early 2011.
Livestrong.org had admitted on their website that their records have been undergoing an inspection. Whether this is a normal procedural compliance check or is abnormal is not stated.
To maintain exemption a charity must not be operated for the benefit of private interests. Notwithstanding that any transactions between the charity and related interests must be disclosed in the annual statements.
The 2006 Annual Financial Statements and Report did not disclose that $500,000 was paid by Livestrong.org in May 2006 to a medical facility employing Dr. Craig Nicholls. In 2006 Dr Nicholls was secretary of Livestrong and on the Board of Directors. No disclosure was made of this conflict of interest donation.
Dr Nicholls also provided an affidavit in 2005 during the 2005 SCA Tribunal case that he was in the hospital room at the relevant time when LA allegedly spouted his past PED use and claimed he heard no such conversation. Other witnesses could not identify Dr Nicholls as being in the room from his photograph.
Within days of becoming aware of Betsy Andreu's SCA tribunal affidavit Livestrong donated $1.5m to University of Indiana Hospital. The hospital resisted in identifying the doctors attending to LA. Was the prime purpose of this donation to personally benefit LA's legal position?
If Livestrong.org was paying a third party for costs relating to the Gulfstream jet, whether proper or not, and LA's personal legal costs these transactions should have been disclosed. No disclosure was made.
The issue of substantial share warrants to Livestrong and (equally) to LA for the sub licensing of the Livestrong brand and purchase of Livestrong.com was not disclosed in the Livestrong statements.
I would not be surprised if the IRS in their investigation of LA have included Livestrong. The IRS could slug him with an excise tax to the extent of the value of the non complying personal benefits he obtained from Livestrong and also withdraw Livestrong's tax exemption status.