Lady Gaga’s Born This Way Foundation wasted $1.5 million: is it fraud?

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Lord, I still can’t over Lady Gaga’s busted wig game at the Oscars. SMH. She has money! She should be able to afford a quality lace-front. Anyway, speaking on money and Gaga and how she spends that money… you know how Gaga formed the Born This Way Foundation several years ago? The foundation seemed to be formed as some kind of anti-bullying, pro-LGBT advocacy group, but the mission always seemed convoluted, and it seemed more like a vanity project/cracked-out delusion more than anything else. And as it turns out, The Born This Way Foundation is basically a scam, a front for Gaga to fund her travels and her huge staff. From Roger Friedman at Showbiz 411:

Don’t get me wrong: I like Lady Gaga and her parents. But celebrities probably shouldn’t start charitable foundations. Now the latest federal tax report is in for Lady Gaga’s Born this Way Foundation, and it’s not good news. Despite spending $348,000 in 2012 on their outreach bus tour, the Born this Way Foundation otherwise managed to fritter away around $1.5 million on legal fees, publicity, and a website.

The foundation, which lists Gaga’s lovely mom, Cynthia Germanotta, as president, had a lot of expenses in 2012 that had nothing to do with helping anyone. They spent $300,000 on “Strategic Consulting (web, digital),” $62,836 on “Stage Productions (Harvard, LA, UN),” $50,000 on “Social Media,” and another almost $50,000 on “Event Coordination.” What?

Born this Way also spent: $808,661 on “other”; $406,552 on “Legal”; $150,000 on “Philanthropic Consulting”; $60,000 on “research”; 58,768 on “Publicity fees”; $78,000 on “travel”. They spent $72,000 on salaries– presumably for running the Born this Way bus, although that episode had its own expense line.

Under ‘grants to organizations or individuals”: $ 5000. Five thousand dollars.

They claimed net assets of $2.1 million. Donations came to $2.6 million, up from $1.4 million in 2011. But there’s no detailed listing of contributors or donations. I suspect most of the money came from Lady Gaga’s earnings. Where it went, and why it went there, is a mystery still.

On top of that, it looks like Lady Gaga loaned Born this Way over $10,000 to pay expenses. Meantime, it’s unclear that anyone was really helped by the Born this Way Foundation other than lawyers, consultants, publicists and travel agents. Gaga would have been better served just writing a check to the Elton John AIDS Foundation. It would have done more good, and quickly.

[From Showbiz 411]

$300,000 on web and digital? More than $400,000 on LEGAL?! WTF? But settle down, little monsters, because Cynthia Germanotta (Gaga’s mom) and Marc Brackett (“Director of the Yale Center for Emotional Intelligence”) have written a HuffPo essay about the foundation’s mission and how this tax filing is pretty much on target with what they were always trying to do:

It is important for us to set the record straight regarding Born This Way Foundation’s mission and how the organization allocates its funds. There is quite a bit of inaccurate information out there right now that misinterprets the essential mission and critical work of a very special organization that was founded several years ago by Stefani Germanotta, whom you all know as Lady Gaga.

First and foremost, we are an organization that conducts our charitable activity directly, and we fund our own work. We are not a grant-maker that funds the work of other charities, and were never intended to be.

Our activity has included The Born Brave Bus Tour, which has travelled to 23 communities, interacting with more than 19,000 young people and raising awareness to the tune of more than 300 million media impressions. The foundation’s messages of kindness and bravery have touched more than half a million online users via our website, which includes the Bravest Map Ever and the Play Brave Game, as well as social media channels such as Twitter and Facebook — which on a peak week can hit 50 million individual users.

Lady Gaga founded Born This Way Foundation to foster a more accepting society for our young people. She covered all of the start-up costs for the organization with her own money and uses her celebrity to constantly advocate on behalf of tolerance, individualism and kindness. Moreover, Born This Way Foundation’s work has focused heavily on providing information on empowerment through its website, raising awareness of the importance of being kind to others through public relations and social media, bringing messages about individuality and bravery to communities around the country via the Born Brave Bus Tour and multiple events.

Every dollar spent across these categories, including the legal fees towards the safe and effective implementation of each initiative, directly serves Born This Way Foundation’s core mission of empowering youth. And we are having a profound impact in just a very short period of time.

Each of these initiatives was funded via monies detailed on the 2012 Form 990. And a true examination of this form, not to mention a clear understanding of the differences between a grant-making organization and one that carries out its work directly would have made this a non-story.

[From HuffPo]

What I’m getting is that their mission was never to “make grants” or “give money the needy.” The foundation’s mission – if you read between the lines – is to fund Lady Gaga and her staff to travel around and have Gaga make self-absorbed speeches about how she helps the LGBT community, all while wearing a crazy outfit. And if Gaga is the only one funding her foundation, so be it. That just means she’s spending her own money on this vanity project. But it was my understanding that Gaga raked in some significant cash from her fans too? And did those donations come with the understanding that the foundation is just an extension of Gaga’s ego and narcissism? Here’s the part that kills my soul a little: “raising awareness to the tune of more than 300 million media impressions.” ARE YOU KIDDING ME?!

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Photos courtesy of WENN.

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42 Responses to “Lady Gaga’s Born This Way Foundation wasted $1.5 million: is it fraud?”

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  1. bns says:

    She’s always been a fraud and she’s a mess lately. Her album flopped and no one cared that she was at the Oscars.

    • NeNe says:

      +1

      Did she do something to her eyes and/or face?

    • MonicaQ says:

      That album was so bad I got second hand embarrassment listening to it on sound cloud. This is what she was working on After being laid up with her “hip surgery”?

  2. Jessica says:

    What are “media impressions”?

    • Tiffany :) says:

      Views, listens, etc.

    • Ally8 says:

      Actually, no. An impression is when you see something online without choosing to and without engaging with it. I’m getting impressions of the ads on this page if I don’t click on any of them. It’s a way to sell page views as people being exposed to your promo, even though your promo isn’t why people clicked to view that page and they may not actually be looking at the promo. Basically, Gaga is trying to upsell very limited audience engagement with her BS tax-evasion “charity”.

  3. Artemis says:

    I truly believe Gaga’s career is over, she cares a bit too much about money and too little about the people who brought her fame. The only thing she had was her LMs and she’s going to lose them too with all the negative press. Apparently she ignored her fans when she arrived at the Oscars (as per Lainey’s account). She doesn’t put out any work (she’s filming videos for her tour) so she abandoned traditional promotion by releasing singles and is completely counting on her tour to make a ‘comeback’ and her whiny posts about it where all lies.

    2013-2014 has been horrible for Gaga. Now this news? Not good at all. Again, as a Madonna fan, I have to point out that Madonna beats her in this category too. Madonna was singing songs about her friend dying of AIDS during a critical time, she was donating loads of money for it and she gave speeches OFF STAGE as Madonna the human being, not as an entertainer manipulating her audience with self-aggrandizing speeches.

    • FLORC says:

      Artemis
      I agree with everything. Although, I think Madonna for the last decade to present is off her rocker. Things are done less for the sake of the cause and more to grab a headline.

      Grabbing headlines is all LG is it seems. She’s more a character in a wacky costume and matching personality. So, this is not shocking. It’s never been about her fans. Only her narcissism and getting them to fund her crazy lifestyle. Because her concerts and sales sure aren’t doing that like they use to.

      • Artemis says:

        She was singing and talking about HIV/AIDS in the 80s and 90s and it is well-known she lost a lot of friends (BFs Keith Haring and Martin Burgoyne). One of those BFs was dying and Madonna stood by his side. Offering him some chocolate she was eating herself. She did charity work and brought the issues up whenever she could which is nothing short of admirable in my book. This is one of the many things that could have destroyed her career back then but she took a stand during a time of mass fear towards HIV. Let’s not talk about post-2005 Madonna, she barely exists for me.

        I like LG’s 2008-2010 career. She had so much potential and she wasted it away. Now she’s just a regular popstar to me, on the wane. She still sells good but she doesn’t stand out anymore. Like nobody is checking for her anymore and back in the day, she attracted an audience that consisted of more than 15-year-olds with mental issues who are funded by their parents (let’s be honest).

      • TheOneandOnlyOnly says:

        Florc’s use of the term “narcissism” sums up Gaggles- an uninteresting mediocre narcissist that endless hype, marketing, and bad taste (I’m a fan of classic loud stadium rock so this processed music doesn’t appeal to me), propelled into fame and fortune. And now, thankfully it’s coming to an end. Does this story surprise anyone.
        Her “music” largely matches her personality – thin, sterile, facile, self-interested. Without a soul or center. And we’ve seen her in enough interviews to know she’s not really bright by any means.
        And of course in lawyer-ridden America, the lawyers always make out.

  4. MollyB says:

    I’m always suspicious of any celeb that starts their own foundation instead of lending their name/time to an established foundation. Even if their intent is not fraudulent, the amount of money they have to spend on establishing a start-up charity leaves that much less to give away.

    • Nicolette says:

      In recent years I have a strong side eye for many fund raising charities and celebrities, and question their integrity. Huge amounts of money were raised for 9/11, Super Storm Sandy, Katrina etc. Where is it? Is it all accounted for? In the case of Sandy some are still waiting for help nearly 18 months later. When there are large sums being donated, I can’t help but think some of it gets lost in the process and winds up lining someone’s pocket.

      • MissMoody says:

        Reading about Wyclef’s Yele Haiti charity was what opened my eyes. He was paid over $600,000 by his own charity to perform at a benefit concert for said charity! What?!

      • Tessy says:

        That would include charities by political celebrities like Big Dog and Poppy Bush. they raised mega bucks for Haiti, but where did it go? When I give to something like that I find someone who is on the ground, actually working to help the people and I don’t care if I can claim it on taxes or not. I have the satisfaction of my money actually being used for what it is intended instead of filling some rich asshat’s pocket.

      • Jarredsgirl says:

        Yup. A lot of charity’s are frauds. This is why I never, ever feel guilty that I don’t give to charity. Here’s the thing about the world: It’s corrupt as hell. Our world is build upon a foundation of deceit. And it serves one purpose: Reward those at the top, manipulate those at the bottom.

        Lady Gaga is disgusting. & no matter how much plastic surgery she gets, she will never look beautiful.

    • lunchcoma says:

      Agreed. Absolute best case scenario is that the foundation is genuine but will be incompetently run and attract attention away from other, more effective organizations. Worst case scenario is something like this. If someone as qualified Warren Buffett can donate to the Gates Foundation, well-meaning celebrities should be able to swallow their pride and admit that they’re not always the best people to administer charitable efforts.

      • lucy2 says:

        I agree with this – anyone wanting to donate and help is great, but so many of them are not good at managing it, or hiring people to do it properly. Put the ego aside and help an existing, effective charity.

  5. Miffy says:

    Wait, what? She established a foundation for the sole purpose of promoting ‘individualism’? She really is an insulated rich white chick.
    Kids dying from illnesses cured by over the counter medicine in the world? No, no! Individuality trumps that in Gagas world!

  6. lucy2 says:

    I’m sorry, the whole thing sounds like a way to avoid paying taxes by calling that money “charitable donations”, pay family and friends, and do nothing but self promotion (and trying to stir up album sales) in the name of “empowerment”.
    At least it wasn’t money that others donated in the hopes of actually being helpful, but this is a gross waste of resources regardless. She could have done some real good with that money.

    • AmandaPanda says:

      Yep. The only time I’ve seen the gaga foundation at work in person I was NOT impressed. It was basically a lady gaga gig (funded, tax free presumably, by foundation monies). It’s just a tax planning tool I think.

    • holly hobby says:

      TAX SHELTER! Well I’m waiting for the IRS to give her a Willie Nelson over this. Such a blatant act of tax dodging.

    • Cinderella says:

      Yep! Let’s call a duck a duck.

  7. MonicaQ says:

    When I saw this over at Gaga Cheat, I thought most main stream media wouldn’t cover it but I saw it on CNN this morning. Looks like the media honeymoon is over.

    • MissMoody says:

      The media honeymoon only lasts as long as the hits keep coming. There is not one hit song on ARTPOP and thus, the tide has turned. I am surprised by the fan reaction though. Even articles about Gaga don’t get many comments these days. What happened to all the LM’s?

  8. Evi says:

    The only way to find out is to audit. But all charities have costs. There are charities that pay a lot to marketing companies to promote them, eg via street charity workers. If we all knew about this behind the scenes stuff we would never donate. I rarely donate now that I kno w that in my city this huge marketing company gets commissions per donation, and the CEO is a multi millionaire.

    • Marigold says:

      It can actually be pretty easy to find a safe charity if you’re willing to do a little research. There are a lot of charity watchdog groups. Your best bet is to find a local organization-food kitchen, animal shelter etc. The bigger the name behind it, the bigger the staff, the more money spent on overhead and not on charitable subjects.

      • lucy2 says:

        Yes – I’ve been donating much more locally, plus the smaller organizations really appreciate any help they get, no matter the amount. For larger groups, there’s a lot of info and ratings out there that can help make an informed decision.

  9. How many celebs get caught up in this–starting their own foundation and then getting in trouble because they’re using the money for other things–are they stupid? Just donate a chunk of change to existing organizations, or actually do it RIGHT. I can’t even fathom taking money, that people gave me, because they thought it was going to some cause or other, and then using it for myself.

  10. lunchcoma says:

    So many of these charities are tax fraud schemes, and it sounds like this is one of them. Gaga has been on my bad side for a long time, but I didn’t realize she’d stoop that low.

    Also, $400,000 in legal fees for a barely-active non-profit is appalling. Even assuming that she used the most expensive counsel available, that’s tons of billable hours. I’m going to guess that a little investigation will reveal that the legal fees were paid to one of her relatives.

    • CC says:

      Yup, and money laundering schemes. I always raise an eyebrow when I hear some rich person created a charity. I go “uhh…sure, ok, what are the results? what they they promote? who benefit from such charities?”. Because a lot of them are schemes set up in order not to pay taxes on earnings or to provide specific people with unofficial trust funds.

  11. Merida says:

    Her face turned into Amy WInehouse’s face. Creepy.

    • bns says:

      Amy Winehouse was beautiful when she cleaned up. I don’t think she and Gaga look anything alike.

    • Magpie says:

      She has always reminded me of Amy Winehouse, physically speaking. Apparently she heard that comparison a lot, which she hated, and that’s why she dyed her hair blonde when she started her career.

  12. some bitch says:

    Her “charity” is a tax haven. Bitch has always been a fraud and it’s finally coming to bite her in the ass.

  13. Adrien says:

    I think Lana delRey has replaced her as the gay icon. Love her or hate her, Lana’s slow burn approach is doing wonders to her career. She’s not being shoved into our faces, she just sporadically appears with some surprises. I really love Lady Gaga and I appreciate her taking a risky route but her career pattern is exhausting.

  14. JH says:

    Her wig is so horrendous. Wth? She’s never looked worse.
    I was a fan, but between the collaboration with R. Kelly and her blaming everyone but herself for her album’s failure, I’m struggling to care about her at all.

  15. drea says:

    Spending $150,000 on “philanthropic consulting” just seems so contradictory.

  16. moo says:

    She’s a fraud, so why not?

  17. Jayna says:

    Celebs most of the time have good intentions but what goes out after “expenses” isn’t worth donating to. Gaga did donate over a million dollars to this. So her heart was in the right place. It’s just not a worthy charity for others to donate to, much like many of these celeb charities. Let her and her rich friends donate if they want to.