MASSACHUSETTS: A Salem-based non-profit founded by an Indian-American couple, has come under scrutiny after its volunteer book-keeper found at least $150,000 in reportedly un-explained expenditures. They also learned that one of the founders was taking $45,000 per year in salary without revealing it to the board. A 501 (c) (3) organisation, We Care Charity was founded by Shefali Desai Kalyani and husband Vinay in 2012.
The charity currently serves 3000 meals per month through its soup kitchens. It aims to provide food to low-income people in the New England area as well as in India. It also delivers baskets of food and blankets to homeless veterans in New Hampshire. Back in India, the organisation has created an 'Education for Grains' distribution program in Pune, providing low-income families with food supplies, enabling their children the right to go to school rather than take up the role of the family provider.
However, earlier this year, volunteer book-keeper Jay Srinivasan, who has since resigned from the organisation's board, analysed the company ledgers and public tax filings, and found that $150,000 to $200,000 in donations were allegedly un-accounted for, in terms of expenditures. Srinivasan took to Facebook to reveal the irregularities. He wrote, “During the past few weeks we have identified several accounting errors/irregularities in WCC through their bank statements. This news has been brought to the attention of all Board of Directors and Board of Advisors.”
Srinivasan also learned that Shefali Kalyani was taking a $45,000 per year salary, on donations of $120,000 per year, which she had allegedly not disclosed to the board or its advisors. The book-keeper also noted that only 25 per cent of donations were being used to secure food and other supplies for charity work. While the board has notified the IRS, all eight members have also resigned and taken their concerns to the New Hampshire Attorney General's office.
Shefali Kalyani maintains that the problem is a simple accounting failure and the charity has hired a CPA to correct any errors and refile taxes if necessary. Former board member Subu Kota said she deserved a salary but was concerned that she did not disclose to the board that she was drawing a paycheck from donated funds. He believes the issues are due to accounting errors and added that he will support Kalyani once the discrepancies are cleared up.
