1. Bulk Of Shriner Donations Benefit
Group, Not Charity
June 29, 1986
By John Wark and Gary Marx, The Orlando Sentinel
For more than 60 years the fez, the black-tassled red hat worn by
Shriners, has been a symbol of the group`s tireless efforts to raise
money for its network of children`s hospitals.
Shrine literature refers to the hospitals as ``the soul of the Shrine``
and ``the reason for Shrinedom.``
Yet Internal Revenue Service records indicate that the Shrine, the
nation`s richest charity, gives its 22 Shriners hospitals for crippled
children less than a third of the millions of dollars it raises from the
public each year.
IRS records were available for only 76 of the Shrine`s 185 temples in
1984, but the records show that those temples raised $10.4 million
that year from such common Shriner activities as circuses, football
games and newspaper sales. Shrine hospitals received only $2.7
million of that money.
The rest -- about $7.7 million -- the temples kept for their own use.
While the IRS could not provide records for the other Shrine temples,
projections based on past income and spending -- including 1982 and
1983 tax records -- indicate the Shrine`s 185 temples raised an
estimated $25.3 million from the public in 1984. Shrine hospitals
reported receiving only $8.3 million from the temples.
A six-month investigation of Shrine finances by The Orlando Sentinel
shows that the 880,000-member fraternity spent the rest -- an

2. estimated $17 million -- on food, travel, entertainment and fraternal
ceremonies.
Estimates from available records also show that Shrine hospitals in
1984 received just 1 percent, or $182,000, of an estimated $17.5
million in profits from about 175 Shrine circuses. Only one of the 76
temples for which IRS records were available reported contributing
any circus money to the hospital system. The most recent year for
which IRS records for the Shrine fraternity were available was 1984.
Robert Turley, a Lexington, Ky., attorney and Shrine spokesman, said
the organization has ``no basis on which we could agree with`` the
conclusion that temples give less than a third of the money they raise
from the public to Shrine hospitals.
``I haven`t seen the evidence of that,`` said Turley, a member of the
Shrine hospital charity`s board of trustees.
Though Shrine leaders made records available for their hospitals,
they declined repeated requests to make finanical records of temples
public.
Richard Olfene of Auburn, Maine, chairman of the Shrine hospital
board of trustees, defended the spending practices, saying that the
temples must be financially secure in order to support the hospitals.
He said that the publicity created by the array of Shrine activities is
critical to maintaining the flow of public donations to the hospitals.
Shriners call their organization ``the world`s greatest philanthropy``
and ``one of the world`s purest charities.`` They also take great care
to foster the widespread perception that all temple activities,
particularly the Shrine circuses, support Shriner hospitals for crippled
children.
But the numbers tell a different story.
The Sentinel`s investigation found that Shrine temples use their
association with the hospitals to generate money for themselves; that
the Shrine does not follow recommended financial reporting criteria

3. set for charitable organizations by the nation`s largest rating
agencies; and that Shrine hospitals may be becoming outmoded.
A 1982 IRS survey ranked the Shrine, with $1.2 billion in assets, the
richest charity in America. The Shrine today is worth an estimated $2
billion. By comparison, the American Red Cross is worth an
estimated $1.1 billion and the American Cancer Society just under
half-a-billion.
The Sentinel`s review of Shrine finances began as a result of a
controversy last year over ticket sales at the 1983 circus sponsored
by Orlando`s, Bahia Temple. Shrine documents, state records, circus
promotional materials and 343 IRS records were reviewed. Interviews
were conducted with more than 185 people, including Shriners, state
and federal authorities, charity administrators, hospital officials and
circus promoters.
The Sentinel found that the Shrine temples, not Shrine hospitals, are
often the primary beneficiaries of the group`s fund-raising activities.
The 76 temples for which IRS records were reviewed had an income
of $39.8 million. They reported spending $35.3 million on themselves
and giving $4.5 million to hospital charity, according to IRS and
hospital records.
Income for all 185 Shrine temples in 1984 was an estimated $97
million. Shriners spent on themselves or invested an estimated $86
million of it. Shrine hospitals got $11 million, according to hospital
charity records.
The money the Shrine temples gave to the hospitals is only a small
part, about 4 percent, of the hospitals` annual income. Most of the
hospital money, about $126 million in 1984, was interest from the
hospital charity`s $1.75 billion in investments. That interest alone was
more than enough to cover the hospitals` $103 million operating
costs.
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4. Shriners Threaten Censure
July 6, 1986
LOS ANGELES -- The Shriners fraternal organization voted to
censure temples found to have misused money intended for charity,
and a spokesman said on the last day of the organization`s national
convention that fund-raising activities of local groups would be
examined.
The Orlando Sentinel has published reports that members of some
temples benefited from money ostensibly raised for crippled
children`s hospitals. The newspaper also maintained that only 1
percent of the estimated $17.5 million raised through 1984 Shriners
charity circuses went to the hospitals.
State Probing Fund Raising By
Shrine
July 25, 1986
By JOHN WARK and GARY MARX, The Orlando Sentinel
ORLANDO -- A state agency is investigating the finances and fund-
raising activities of the Florida temples of the Shrine of North America
and the organization`s Tampa-based charity, Shriners Hospitals for
Crippled Children.
Debbie Rodby, assistant director of the Florida Department of State`s
licensing division, said Thursday that investigators from seven
regional offices have been instructed ``to look into the activities in

5. their area.``
The state wants to determine if the 10 Shrine temples in Florida and
the Shrine`s hospital charity are properly registered and comply with
fund-raising guidelines, she said. Officials also will investigate
whether the temples have misled the public about who would benefit
from fund-raising events.
Rodby said the Bahia Shrine Temple in Orlando will receive special
scrutiny because of reports that it misled the public about how profits
from a circus in 1983 would be spent.
Last week, the boards that govern the national Shrine fraternity and
its hospital charity censured Bahia for promoting the 1983 circus as a
hospital fundraiser. The proceeds were kept by the temple.
Bruce Thomas of Ormond Beach, the potentate, or head, of the Bahia
Shrine, could not be reached Thursday.
Everett Evans, a spokesman for the Shrine`s national board of
directors, said Thursday he was unaware of the investigation.
He said, however, ``If there is any problem it will be corrected. We will
work with the state. Our bylaws require us to comply with state and
federal laws.``
A series by The Orlando Sentinel reported that the fraternity gave
only a third of the money it raised from the public in 1984 to the 19
orthopedic and three burn hospitals operated by the Shrine.
The newspaper also found that only about 1 percent of the net profits
from 175 Shrine circuses was passed on to the hospitals, although
the events often were presented as fund raisers to benefit the Shrine
hospital charity.
Florida law requires registration by any charity that raises more than
$10,000 annually from the public. Charities using professional
solicitors also must register, regardless of the amount of annual
contributions they receive.

6. ###
Shriner Confirms 400 Circuses Held
Conventioneers Set Sights On Censuring Some Temples
July 2, 1986
By John Wark and Gary Marx of the Sentinel Staff
LOS ANGELES — A spokesman for the Shrine Circus Association of
North America said Tuesday that Shriners hold 400 circuses each
year.
''There are at least 400, including Shrine clubs and temples,'' said
Virgil Wilder, a member of the A Chymia Temple in Memphis, Tenn.,
and vice president of the circus association.
The Orlando Sentinel reported Monday that at least 175 Shrine
temples hold an annual circus and that they raise about $17.5 million
a year. Of that, Shriners Hospitals for Crippled Children received 1
percent, or about $182,000.
Shrine producers across the nation earlier told the newspaper that
the Shrine probably holds as many as 500 circuses each year.
Members of the Shrine's board of directors disagreed wth those
figures. Shrine spokesman Robert Turley has said that the number of
Shrine circuses was much lower than 175. Turley contended nobody
in the Shrine knows how many circuses there are.
Wilder's comments Tuesday are the first confirmation from a Shriner
that the number of circuses is in the hundreds. Wilder said the year-
old circus association was formed to enable Shriners to exchange
information about their circuses, he said.
Rodney Pinkham, director of the association, said it is difficult to
estimate the profits of the 400 circuses.''Some make no money at all,''

7. Pinkham said, and ''some make a lot.''
In response to the newspapers findings that some temples
misrepresent their circuses to the public by leading people to
perceive the events as benefits for crippled and burned children,
Pinkham said, ''A lot of that is done by mistake. If they (other
Shriners) would come to meetings like this they would know better.''
Wilder and Pinkham were interviewed at a convention table in the Los
Angeles hotel where 30,000 shriners are holding their annual
convention this week. The Shrine board of directors were told
Tuesday that a report would be issued Thursday on fund-raising
misrepresentation.
The head of the Shrine, Imperial Potentate Walker Kisselburgh, said
the board will be taking punitive action against some temples.
Kisselburgh again Tuesday called the Sentinel stories inaccurate but,
in referring to action against the temples, said, ''Maybe some good
will come out of this after all.''
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Donations Bypassed Charities
Records Show Shriners Used
Millions For Parties
January 11, 1987
By JOHN WARK and GARY MARX, Orlando Sentinel
The Shrine of North America gave less than 30 percent of an
estimated $30 million raised from the public in 1985 to its hospitals for
crippled and burned children, according to new records obtained from
the Internal Revenue Service and Shriners Hospitals for Crippled
Children.
The latest records are consistent with the findings of an Orlando
Sentinel series about Shrine fund-raising practices that was published

8. in June and July. That series was based on Shrine fund-raising
records filed in 1982, 1983 and 1984.
For the latest study, the newspaper obtained the 1985 IRS records for
99 Shrine temples, or clubhouses. Records from the IRS and the
Shrine show that the charity received about $4 million of the $16
million raised by the 99 temples from such activities as circuses,
football games and newspaper sales.
The IRS could not provide records for all 188 Shrine temples.
Projections based on records for the 99 temples show, however, that
all the temples collectively raised an estimated $30.4 million from
public events in 1985. Shrine hospitals reported receiving $8.7
million.
The projections were based on the average amount raised by the 99
temples for which records were available. The average was multiplied
by the total number of temples.
The fraternity kept 71 percent of the money it raised from the public in
1985 -- an estimated $21.7 million -- to pay for a wide range of
clubhouse expenses, including the upkeep of private bars,
restaurants and golf courses. It also used the money to pay for
conventions, travel and entertainment for its 880,000 members. An
estimated $15.5 million was spent on conventions and parties alone,
IRS records show.
The Shrine`s most lucrative fund-raising events, the hundreds of
annual circuses sponsored throughout the country each year,
generated an estimated $23 million in 1985. The records show that
less than 2 percent of that money, or $346,251, went to the medical
care of children.
Russell Anthony, imperial potentate or head of the Shrine fraternity,
refused to comment.
In its earlier study, the newspaper found that less than a third of the
money from temple fund-raising activities was reaching Shrine
hospitals. The Sentinel also found a nationwide pattern of fund-

9. raising misrepresentation, a problem the Shrine has since moved to
correct.
Shrine leaders now require temples to make clear whether a fund-
raiser is benefiting crippled children or Shriners themselves. A
national committee of Shriners has been set up to review materials
used to promote temple fund- raising events.
The Ancient Arabic Order of the Nobles of the Mystic Shrine has a
network of 188 temples in the United States, Canada and Mexico,
operating chiefly for the benefit of fraternal members. The fraternity
established Shriners Hospitals for Crippled Children in 1922, and
today it operates 19 orthopedic and three burn hospitals that provide
free care to underprivileged children. The Shriners say they have
``cured or substantially helped`` 300,000 children.
In 1985 the Shrine charity spent $121.5 million, or 33 percent of the
$358.4 million at its disposal, to operate the hospitals. Income from
the Shrine charity`s $1.98 billion endowment fund produced $220.8
million, almost twice what was needed to cover the cost of operating
the hospitals.
The national Council of Better Business Bureaus in November placed
the Shrine charity on its list of groups that fail to meet its standards
for charities.
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