Analysis of $traight’s Tax Records:
a hundred million dollar charity for white kids only

by Wes Fager (c) 2000

Children are a very marketable commodity for hospital admissions.
Pete Kreis (1985), former Chief of Children, Youth and Families Division,  Florida Department of Health and Rehabilitative Services (HRS). [Saint Petersburg Times, Jul 6, 1987]
Getting money is easy . . . Myself. [I would invest in] drug and alcohol rehab centers. I’m serious. It’s the number one op of the 90s. Priscilla, people are chic. You tell them they can’t quit on their own and suddenly everybody needs help. I mean the human mind. What can you say.”
Con artist Eddy Otis (Kevin Spacey) from the 1993 suspense chiller Consenting Adults
There are four tables in this section:
Table 1 shows IRS 990 tax forms for Straights.  From time-to-time we will add hyperlinks to those forms which we have.  
Table 2   gives the combined total income and expenses for Straight, Inc. plus Straight Foundation, Inc. for the periods 1983 - 1995.   It combines the data of Table 3 and Table 4.  
Table 3 gives a breakdown of incomes and expenses for Straight, Inc.-only  from 1983 to 1993.   
Table 4 gives a breakdown of income and expenses for Straight Foundation, Inc.-only from 1985 - 1995. 

The first-time reader should probably just  look at these tables to gain insight into the magnitude of the sums of money involved   and to see the types of things the Straights claimed as income and the types of things it declared as expenses.   Following the tables is a lengthy analysis  of  certain items of income and expense which the Straight's declared.   

Straight, Inc. was founded in 1976 and changed its name and mission to  Straight Foundation, Inc. in 1985 at which time a new juvenile drug treatment program called Straight, Inc. was created which operated until 1993.  In 1996 Straight Foundation, Inc. changed its name again to its current name--the Drug Free America Foundation, Inc.  Being tax exempt charities the tax records for both Straight, Inc. and Straight Foundation, Inc. are open for public inspection.  Tax exempt organizations like Straight are required to file taxes on an IRS Form 990.   Table 1 gives the Form 990's for which I have records.  I have included hyperlinks for some of them.   Raw data from these  forms is used to build Tables 2, 3 and 4.   Straight's fiscal year begins on October 1,  thus the IRS 990  Form for 1988,  for example,  gives Straight's tax record for the period October 1, 1988 through September 30, 1989.   As you can see I do not have filings for Straight  Inc. from 1976 to 1982,  and for 1992.  Nor do I have filings for Straight Foundation, Inc. for 1992, 1994 and 1996 to 2000.  However,  Schedule A to the 19XX return in later years gives incomes for the previous 4 years thus I have the income-only part of Straight, Inc. and Straight Foundation, Inc. for 1992,  and the income-only part of Straight Foundation, Inc. for 1994.    

 
Table 1: IRS Form 990's
for the original Straight, Inc. (under its various names) and the new, now defunct Straight, Inc. (Any data blackened out was done by author.)  
the original Straight, Inc. 
April, 22, 1976 -  present
the new, now defunct Straight, Inc
Sept 26, 1985 - July 1, 1993
Straight, Inc. FY 76  
Straight, Inc. FY 77  
Straight, Inc. FY 78  
Straight, Inc. FY 79  
Straight, Inc. FY 80  
Straight, Inc. FY 81  
Straight, Inc. FY 82  
Straight, Inc. FY 83 pages, 1, 11, 13, 15  
Straight, Inc FY 84, page 1 2 3 4 5 6(blank) 7(blank) 8 9 10  
Straight Foundation, Inc. FY 85, page  1 2 3 4 5 6 7 8 9 10 11 12(blank) 13(blank)  14 15 Straight, Inc. FY 85, page 1 2 3 4 5 6(blank) 7(blank)  8 9 10
Straight Foundation, Inc. FY 86 Straight, Inc. FY 86
Straight Foundation, Inc. FY 87, page 1, 7, 8 Straight, Inc. FY 87
Straight Foundation, Inc. FY 88, page 6 Straight, Inc FY 88, pages 1, 2, 5 , page 11
Straight Foundation, Inc. FY 89 Straight, Inc FY 89 
Straight Foundation, Inc. FY 90, page 1, 4, 5, 11, 12 Straight, Inc. FY 90,  pages 1-2-7, 4, 5, 6, 15
Straight Foundation, Inc. FY 91 Straight, Inc. FY 91
Straight Foundation, Inc. FY 92--we only have income only available from Schedule A, 1993 filing Straight, Inc. FY 92--we only have income only which is available from  Schedule A,1993 filing
Straight Foundation, Inc. FY 93  
Straight Foundation, Inc. FY 94--income only available from Schedule A, 1995 filing  
Drug Free America Foundation, Inc FY 95  
Drug Free America Foundation, Inc. FY 96  
Drug Free America Foundation, Inc. FY 97  
Drug Free America Foundation, Inc. FY 98  
Drug Free America Foundation, Inc. FY 99  
Drug Free America Foundation, Inc. FY 00  
Drug Free America Foundation, Inc. FY 01  
Drug Free America Foundation, Inc. FY 02  

.

Table 2 below gives Total Incomes & Expenses for Straight, Inc. and Straight Foundation, Inc. Combined.  Table 2 combines the incomes and expenses from Tables 3 and 4 giving separate total columns from 1983 - 1991 (because I have un-interrupted records for these years),   and from 1983 - 1995 (as best as can be done since expenses for 1992 and 1994 are not known).   From 1983 to 1995 Straight, Inc. and Straight Foundation, Inc. combined claimed to have taken in $87 million, but they spent over $86 million operating the program.  Later in the analysis portion of this study,  we will see why a truer picture is that the Straight's grossed nearly a hundred million dollars.   As noted on the spread sheet, a truer figure for total expenses (assuming $2.5 million for operating expenses in 1992)  would be $88.5 million in total expenses resulting in a net deficit of $1.5 million between 1983 and 1995.  In other words Straight's records would seem to indicate that though they grossed $87 million,  they actually lost over a million dollars doing their charitable work.  As you will see from the table,  some of the major expenses include:
        $44 million for salaries (non-fundraising and fundraising)
        $10 million in bad debts (where parent did not pay up)
        $11 million  for rent and rental expenses. (Beyond this $11 million,  Straight Foundation, Inc. rented properties to Straight, Inc.   I did not include this rent in the total because I treated it as a wash.)  
        $3.5 million for fund raising prizes
        $2.3 million for outside services
        $2 million for food
        $1.3 million for specific charitable assistance to individuals
        $1.3 million for miscellaneous.

 

Table 2.  Combined Income & Expenses for Straight, Inc. & Straight Foundation, Inc. 1983 - 1995

Combined Incomes

Combined Incomes

Straight, Inc. +

Straight, Inc. +

Straight, Inc.

Straight, Inc.

Straight Fdn, Inc.

Straight Fdn, Inc.

Straight Fdn, Inc.

Straight Fdn, Inc.

Income & Expenses

Income & Expenses

Income & Expenses

Income & Expenses

1983 - 1995

1983 - 1991

1983 - 1993

1983 - 1991

1985 - 1995

1985-1991

INCOME

revenues (from program fees)

$67,273,159

$66,621,078

$67,159,675

$66,621,078

$113,484

$0

income from grants

from Straight Foundation

$3,280,747

$2,724,249

from direct public support

$18,029,189

$17,219,479

$15,759,256

$15,208,118

$2,269,933

$2,011,361

rentals

$4,354,800

$4,354,800

other

$1,722,835

$554,734

$1,458,731

$354,040

$264,104

$200,694

-------------------

-------------------

-------------------

-------------------

-------------------

-------------------

Total Income 1983 - 1995

$87,025,183

$84,395,291

$87,658,409

$84,907,485

$7,002,321

$6,566,855

EXPENSES

grants to Straight, Inc.

$3,280,747

$2,724,249

grants to non-Straights

$58,000

$0

$58,000

$0

wages & payroll taxes

non fundraising

$42,885,955

$42,885,955

$42,885,955

$42,885,955

$0

$0

rent

$6,411,118

$6,411,118

$10,633,280

$10,633,280

$511

$511

rental expenses

$4,358,938

$4,358,938

$4,358,938

$4,358,938

bad debts

$9,673,901

$9,673,901

$9,673,901

$9,673,901

0

$0

fundraising

wages & payroll taxes

$1,154,295

$1,154,295

$881,454

$881,454

$272,841

$272,841

prizes

$3,457,720

$3,457,720

$3,457,720

$3,457,720

0

$0

rent

$132,127

$132,127

$0

$0

printing

$76,414

$76,414

$76,414

$76,414

other fundraising

$107,298

$107,298

$107,298

$107,298

specific assistance to people

$1,375,024

$1,375,024

$1,375,024

$1,375,024

$0

$0

legal fees

$601,164

$582,470

$120,174

$108,599

$480,990

$473,871

printing

$1,215,430

$1,215,430

$1,215,430

$1,215,430

$0

$0

food

$1,995,741

$1,995,741

$1,995,741

$1,995,741

$0

$0

insurance

$375,108

$355,410

$166,701

$159,905

$208,407

$195,505

outside services

service contracts

$113,038

$113,038

$113,038

$113,038

$0

$0

medical services

$314,095

$314,095

$314,095

$314,095

$0

$0

outside services

$2,315,975

$2,315,975

$2,286,094

$2,286,094

$29,881

$29,881

miscellaneous

$1,345,463

$1,345,463

$1,321,050

$1,321,050

$24,413

$24,413

other

$8,289,055

$7,954,067

$7,912,528

$7,821,417

$376,527

$132,650

-------------------

-------------------

-------------------

-------------------

-------------------

-------------------

Total Expenses 1983 - 1995

$86,123,732

$82,054,048

$84,484,312

$84,374,830

$9,274,967

$8,396,571

Note:  Total expenses for the period 1983 to 1995 is shown to be $86,123,732   but this does not include expenses for Straight, Inc. for the tax year 1992.  Based on prior years  a figure of $2.5 million is probably a good estimate.   This assumption would lead to a deficit of  (1,598,549) [$87,025,183 -  ($86,123,732 + $2,500,000)].   Thus a reasonable estimate would show that Straight would claim that it had raised $87 million from  1983 to 1995,  but its expenses had been $88.5 million producing a net loss of $1.5 million.   [An assumed additional loss of another $50 - $60K for expenses from Straight Foundation, Inc. for expenses in 1992 and 1994 is not included.]

 
Table 3: Straight, Inc. 1983 - 1995 (below) gives a detailed breakdown of incomes and expenses for Straight, Inc. by year from 1983 to 1993, plus two total columns. One total is for the years 1983 - 1991 because it is a complete spread sheet. The other total is for the years 1983 - 1993 realizing that the expense-only part of 1992 is not included. The bottom-line shows that according to its records, Straight, Inc. claims to have taken-in $87 million from 1983 - 1993 but had expenses of $84 million (not including expenses for 1992). Thus a net excess of $3 million. However, based on prior tax reportings, it would be reasonable to assume Straight, Inc.’s expenses for 1992 to be $2.5 million. Thus a truer figure for Straight, Inc.’s net excess/deficit for the period 1983 - 1993 is probably an excess of about $675,000. 

Table 3.  Income & Expenses for Straight, Inc. 1983 - 1993

INCOME

Tot 83 - 93

Tot 83 - 91

1993

1992

1991

1990

1989

1988

1987

INCOME

1986

1985

1984

1983

donations & grants

donations & grants

    from Straight Foundation

$3,280,747

$2,724,249

556,498

0

0

150,000

534,817

0

242,421

    from Straight Foundation

541,292

1,255,719

0

0

    from direct public support

$15,759,256

$15,208,118

102,355

448,783

626,393

1,844,988

2,304,625

2,301,025

1,787,316

    from direct public support

2,084,371

958,791

1,774,268

1,526,341

revenues

$67,159,675

$66,621,078

4,742

533,855

4,743,445

7,075,872

11,640,923

10,670,961

9,977,538

revenues

10,000,495

5,962,099

3,885,385

2,664,360

interest

$350,858

$350,858

0

0

1,436

6,698

31,611

70,819

35,529

interest

11,525

28,179

84,764

80,297

forgiveness of bad debt

$1,104,691

$0

0

1,104,691

0

0

0

0

0

forgiveness of bad debt

0

0

0

0

other

$3,182

$3,182

0

0

0

0

0

3,182

0

other

0

0

0

0

---------------

---------------

---------------

---------------

---------------

---------------

---------------

---------------

---------------

 

---------------

---------------

---------------

---------------

TOTAL INCOME

$87,658,409

$84,907,485

$663,595

$2,087,329

$5,371,274

$9,077,558

$14,511,976

$13,045,987

$12,042,804

TOTAL INCOME

$12,637,683

$8,204,788

$5,744,417

$4,270,998

EXPENSES

Tot 83 - 93

Tot 83 - 91

1993

1992

1991

1990

1989

1988

1987

EXPENSES

1986

1985

1984

1983

wages, taxes, benefits

wages, taxes, benefits

     program services

$36,204,377

$36,204,377

0

2,128,599

4,295,660

7,221,529

5,733,770

4,432,078

     program services

5,137,503

3,570,505

2,148,208

1,536,525

     management

$6,450,409

$6,450,409

0

638,018

1,192,287

1,180,478

1,135,454

761,640

     management

543,816

482,807

319,120

196,789

     officers & directors

$231,169

$231,169

0

0

0

0

0

0

     officers & directors

0

67,131

83,413

80,625

fundraising

fundraising

     wages & taxes

$881,454

$881,454

0

167,359

178,986

275,561

178,171

0

     wages & taxes

0

36,933

27,276

17,168

     rent

$132,127

$132,127

0

6,784

12,702

25,890

22,980

19,950

     rent

24,405

830

18,586

0

     bingo prizes

$289,717

$289,717

0

0

0

0

0

0

     bingo prizes

0

289,717

0

0

     prizes and awards

$1,916,665

$1,916,665

0

72,885

525,058

734,471

584,251

0

     prizes and awards

0

0

0

0

     miscellaneous (prizes?)

$1,251,338

$1,251,338

0

0

4126

11,757

8,246

535,235

     miscellaneous (prizes?)

505,167

0

184,422

2,385