HOW can ex-cricketer Shane Warne jet off into the African jungle leaving such a mess behind him here in Australia?
In case you haven’t heard, Warne has been named as one of the big names appearing in the reality show I’m a Celebrity … Get Me Out of Here!
He’s rumoured to be earning a princely $2 million for his involvement. On the show Warne arrives by private jet, and struts confidently down a red carpet dressed in a smart navy jacket.
Clearly, he’s the star contestant — some of the others had to arrive by canoe.
Warne’s involvement in the show will be great for ratings, but it’s a questionable choice for the spin king, who’s just announced to sudden closure of The Shane Warne Foundation.
The charity, which raises and distributes funds to children’s causes, continues to face scrutiny from Consumer Affairs Victoria over its accounting practices.
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If Warne wins the show his charity will get $100,000, but it’s a long way short of the millions of dollars he will allegedly earn personally for a few weeks’ work.
It’s not a good look for Warne to pocket such a big pay cheque at a time when his foundation is still under such a cloud.
Shane Warne Foundation meeting with board members.
Also, there still seems to be a fair amount of denial coming from the foundation and Warne about why the auditors are so interested.
A message on the foundation’s website refers to “recent, unwarranted speculation” about its management of millions of dollars in funds. Warne also scoffed at what he called a “malicious campaign” in the media.
However, there is nothing unwarranted or malicious about the financial probe into the charity.
The closure of the foundation follows a review of operations by the board in November last year amid concerns about high costs and low revenues. Consumer Affairs became involved when the foundation failed to provide sufficient documents.
There’s another issue. Warne has repeatedly denied the foundation has done anything wrong and had “nothing to hide”.
But how can he be so sure given that the audit hasn’t yet been completed?
Warne has also made it all very personal, insisting he’s hurt by the allegations. He needs to realise this is not about him and his feelings. It’s not a personal attack, but a legitimate and justified process.
James Packer. Picture: Getty Images
At audit time it doesn’t matter what famous people are involved, or how many millionaires or TV stars are on the board. All charities must meet the same high standards of accountability and transparency that donors expect.
Most people would be shocked to know as little as one in three dollars raised by some charities has to go out as donations. The rest can be spent on fundraising and overheads.
The Shane Warne Foundation insists that on average 52 per cent of the money it has raised has been distributed. Its website states that it has distributed $3.6 million since 2004 and says that by March this year it will have distributed more than $4 million out of total funds donated of $7.8 million.
It sure looks as if the foundation has massive overheads given that it is an umbrella organisation that channels money to other charities rather than spending it directly.
Indeed, in some years the percentage of money distributed is much, much less than 52 per cent.
Between 2011 and 2013, the average figure was only 16c going to needy families and children’s charities from every dollar raised.
Warne decked out in his jungle attire.
Warne completing a challenge on the show. Picture: Network Ten
Figures obtained by the Herald Sun show that in 2012, $115,472 was distributed from revenue of $405,212 and expenses amounted to $385,000. Compare this with the Australian Council for International Development that says its members spend about 10 per cent on fundraising, and another 10 per cent on administration costs. That’s 80 per cent going directly to the beneficiaries, not 50 per cent or 16 per cent.
No one is questioning Warne’s commitment to the cause or suggesting he’s been involved in any wrongdoing, or questioning the credibility of other high-profile people associated with the charity such as Glenn Robbins, Eddie McGuire and James Packer.
However, somewhere along the line something has clearly gone awry, despite the good intentions.
The foundation’s main source of revenue — events-based funding relying on profits from gala dinners, poker tournaments and race days — are very risky.
The charity ends up getting what’s left over once all the costs of the event have been met, which are often not as high as projected.
Laws governing charities need to be tightened so donors have a much better picture of how much money gets through.
In interviews promoting I’m A Celebrity, the cricketer says his time in the jungle will show people the “real” Shane Warne. Let’s hope he’s out soon to face some real questions and give real answers about the foundation, which he is clearly so passionate about.
Donors deserve nothing less.
