Mont. AG Launches Inquiry Into ‘Three Cups of Tea’ Author‘s Charity After ’60 Minutes’ Special
- Posted on April 20, 2011 at 7:19am by
Jonathon M. Seidl
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HELENA, Mont. (The Blaze/AP) — Montana’s attorney general is scrutinizing the charity run by “Three Cups of Tea” co-author Greg Mortenson after reports questioned whether Mortenson benefited from money donated to build schools in Pakistan and Afghanistan.
Attorney General Steve Bullock’s announcement Tuesday follows investigations by “60 Minutes” and author Jon Krakauer into inaccuracies in the book and spending by the Bozeman, Mont.-based Central Asia Institute.
Bullock oversees nonprofit corporations operating in the state. He has been in contact with attorneys for the agency, and they have pledged their full cooperation, he said in a statement to The Associated Press.
“While looking into this issue, my office will not jump to any conclusions — but we have a responsibility to make sure charitable assets are used for their intended purposes,” he said in the statement.
“Three Cups of Tea” was released in 2006 and sold more than 3 million copies. That notoriety helped Mortenson grow the Central Asia Institute by generating more than $50 million in donations, Krakauer said.
According to the charity’s website, it has “successfully established over 170 schools” and helped educate over 68,000 students, with an emphasis on girls’ education.
Krakauer, author of “Into the Wild,” cast doubt on Mortenson’s story of being lost in 1993 while mountain climbing in rural Pakistan and stumbling upon the village of Korphe, where the residents helped him recuperate and he promised to build a school. Krakauer called it a “myth.”
“Mortenson has lied about the noble deeds he has done, the risks he has taken, the people he has met, the number of schools he has built,“ Krakauer wrote in the recently published ”Three Cups of Deceit.”
Krakauer reported that millions of dollars donated to the Central Asia Institute were spent on chartered jets, equipment and advertising for Mortenson’s books, even though the charity doesn’t receive any royalties for them. One former board member told Krakauer that Mortenson “regards CAI as his personal ATM.”
Mortenson and officials with the charity did not return calls and emails for comment from the AP. Charity officials told the Bozeman Daily Chronicle on Tuesday that Mortenson was being treated at a Bozeman hospital for a heart ailment.
Anne Beyersdorfer, who was named temporary director of the Central Asia Institute, told the newspaper that doctors will repair a hole in Mortenson’s aortic ventricular wall next week. She says he has low oxygen levels in his blood and has canceled appearances for two weeks.
Beyersdorfer, who described herself as a family friend, said Mortenson plans to set the record straight.
Bullock spokesman Kevin O‘Brien said the attorney general’s inquiry has not reached the level of a full-scale investigation and it was not immediately clear exactly what Bullock was seeking.
“Those are the things that are going to have to come out in the coming days,” O’Brien said.
Tax information filed with the Internal Revenue Service for the fiscal year ending Sept. 30, 2009, the most recent available, put the charity’s expenses at $9.7 million. Of that, $3.9 million — about 41 percent — was spent on building materials, teacher salaries, scholarships and other expenses related to school building.
A larger amount, $4.6 million, was spent on what was described in the tax documents as “domestic outreach and education” and “lectures and guest appearances across the United States.” Mortenson, who is the Central Asia Institute’s executive director and a board member, received $180,747 in compensation that year.
More than $1.5 million of the charity‘s expenses went to advertising and marketing Mortenson’s books.
In a recent interview with Outside magazine, Mortenson said he had done nothing wrong and that much of that money goes toward educating people in the U.S. about the need for the schools.
“Our education mission includes both educating young people in Pakistan and Afghanistan — especially girls — and educating the American public about how promoting education in these countries contributes to peace,” he told the magazine.
But, Mortenson added, the Central Asia Institute’s law firm produced an internal memo that he might be found in violation of IRS regulations regarding excess benefits if the Central Asia Institute were audited.
Mortenson hired an outside law firm in January to conduct an independent analysis of the charity. The firm concluded he had done nothing wrong, but recommended there be specific changes to separate Mortenson in some respects from the charity, he said.
Mortenson said he has been paying for all of his own travel since January, and the charter flights allowed him to pack more speaking engagements in.
The New Yorker reports that Barack Obama has donated $100,000 to the charity. The book is also required reading for U.S. soldiers in Afghanistan.




















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IX-XI
Posted on April 21, 2011 at 10:08amAnother lying lib. Bottom story of the day.
Want your charitable contributions to do good? If you trust your church, donate there. You will actually see the good your contributions do.
If you don’t trust your church, first, find one you can trust. While doing that, donate to the Salvation Army. That outfit is the best there is at helping the poor and those down on their luck. It staffs with a large number of volunteers and overhead is ridiculously low. Nobody‘s making a profit off Sally’s.
If I were down on my luck, no family or church support structure to help, I’d seek out the Salvation Army.
Report Post »Junter
Posted on April 20, 2011 at 10:02pm“The book is also required reading for U.S. soldiers in Afghanistan.”
What a waste of tax payer dollars. I’m sure the US gov can find better ways to program soldiers.
Report Post »Jon Weideman
Posted on April 20, 2011 at 6:53pmI’ve read the book and Mr. Mortenson’s adventures and achievements are very inspiring and noble
Report Post »pat
Posted on April 22, 2011 at 11:37amat least they would be if they were try. it would have sold as fiction as well and the ideas would still have been out there
Report Post »HD Veteran
Posted on April 20, 2011 at 5:19pmWow, I’m shocked the Lib Progressive author has a problem with honesty. NOT!
Report Post »EdBoo
Posted on April 20, 2011 at 1:22pmWhich is yet another good reason to remind us that real charity begins at home. These “do-gooders” crafting charities to line pockets are far to prevalent. I foolishly helped one get started years ago that turned in that direction and regret it to this day.
Helping out in the ghettos and barios here does not play as well as a third-world country at a charitable fund raising event. Not enough panache the sponsors. Also, professional developers worth their salt are the ones who can consistently raise money for causes year after year by communication genuine need while explaining and justifying expenditures.
Giving money to a 501(c)3 for spending in a another country and getting tax deduction for it makes no sense to me. Too many of these “charities” are no or low stress jobs for under achievers. The only stress they experience is not having enough revenue coming in the door to keep their jobs.
Too many “charities” spend way to much sending staff to conferences to see what other groups have done that the not-for-profit community in general deems successful. Too many of these are boondoggles for staff or ego preening for the presenters. My thought is read about it and then implement if you think it is worth implementation in your organization. Gotta’ question? Pick up the phone or send an email. It’s faster and a heck of a lot cheaper.
Not-for-profit staff have to deal with issues and horrific stories all day and they will do just about anything to get away from it for a few days. Hence all the “conferences” and a chance to have someone else pay your expenses. The latter is a big hang-up for them. They are never paid “enough” for what they do and with that in mind the free stuff takes on new meaning.
These days we give to the Salvation Army and the USO. I know there my money goes to people who need help and not to keep organizational staff employed. There are other very good causes and organizations on our list which we support but these two get the bulk of our donations.
I also give to a fund at work that helps our fellow employees truly in need. The governing board is made up of employees at all levels. The first thing they ask applicants for assistance is what have you done to help yourself – and prove it. Best operating decision they ever made. They help out a lot and I am very proud of that program.
Report Post »reckless
Posted on April 20, 2011 at 1:07pmIf I am not mistaken, a non-profit organization cannot show a “profit” or any surplus income at the end of their fiscal year.
Report Post »So, they must spend any and all money in some fashion. There are many non-profits that will find a suitable charity or set up some type of trust fund related to their endeavors. There are some less reputable non-profits that simply take any funds above and beyond their operating and charitable requirements and spend it as “bouses” for its directors and executives.
Far too many charities are set up with a minimal charitable goal and end up being an easy way for its directors to get rich off of other peoples well intended donations.
benrush
Posted on April 20, 2011 at 12:26pmMeanwhile, if y’all will make a contribution to my school with real students who are learning the Christian origins of America, go right ahead:
http://www.heartsofthechildren.com
Report Post »HD Veteran
Posted on April 20, 2011 at 5:21pmdamn good advice.
Report Post »Paul_ Revere
Posted on April 20, 2011 at 12:20pmcannot post
Report Post »TehFreedomist
Posted on April 20, 2011 at 11:42amRequired reading for our soldiers? When did the armed forces trade “The Art of War” for “Three Cups of Tea”? You know – I’m beginning to worry that our military has been infiltrated by the PC bureaucrats to the point of no return. No self respecting warrior thinks or cares about the “hearts and minds” campaign in any country. Nation building is a failing option as these people don’t want us interfering, largely. The one’s who would want us there should just move their families out of there so we can wipe the moonbats out OR they need to organize their own revolutions. We shouldn’t continue to force western, enlightened societal values on people who are CLEARLY unwilling/unable to embrace them. Their cultures and religion are Totalitarian by nature. They simply won’t be able to come to accept our way of life unless they do on their own terms. Kind of like “learning the hard way”. We all know how that works. They do not. They’re are content to brutalize each other and turn a blind eye to the most outrageous things. I believe in altruism to a certain degree but there is a line to be drawn on what is realistic and what is not. The long term goal in the middle east is clearly not a realistic goal.
Report Post »Jim in Houston
Posted on April 20, 2011 at 2:51pmIt is probably better than the GI toilet paper. Hope there are enough pages to last a soldier’s tour.
Report Post »defunditall
Posted on April 20, 2011 at 9:53amThe impact of Mortenson’s (alleged) lies will be felt most heavily here in Montana, where the good folks who wholeheartedly believed in his mission have contributed millions. The circle of disenchantment is already beginning to spread here. Local groups are cancelling fundraisers for Mortenson like wildfire. The good people Mortenson employs will be out of jobs.
On the other hand, he is a champion of Bozeman liberals, and it’s nice to watch one of their white ivory pillars crumble.
Report Post »hempstead1944
Posted on April 20, 2011 at 9:15amThe only fools in this are the poor suckers who actually donated to the charity….
Report Post »PaBowHunter
Posted on April 20, 2011 at 9:10amLiberalsarealiens….I agree Sir. It will take at least a complete generation to remove the radical Islamic indoctrination which has been occurring for many generations. Although I believe there are certain percentage of the population which could immediately accept our type of freedom, I also believe that a much larger percentage of the current population has been indoctrinated far too long to accept our freedoms.
Report Post »Slobaphobe
Posted on April 20, 2011 at 9:10amI’ve written a book. It’s called “Three Years of Obama”. The best part is when I got lost in the unemployment line.
Report Post »Jim in Houston
Posted on April 20, 2011 at 2:49pmIt must be a horror story.
Report Post »Shrugged
Posted on April 20, 2011 at 6:23pmnonfiction novel
Report Post »MaggieRose
Posted on April 20, 2011 at 8:27amHA! I know what my kiddo will do with that “required reading” material over in Afghanistan. Also, Krakauer will get to the bottom of this. His other investigative books have been excellent.
Report Post »liberalsarealiens
Posted on April 20, 2011 at 7:37amLegitiment or not the endevor would be a complete waist of time and money! These people do not want that kind of change. They are too entrenched in their ways!
Report Post »MaggieRose
Posted on April 20, 2011 at 8:15amhmmm… have to disagree with you there, liberalsarealiens. I believe all people are born wanting freedom, a God-given inalienable right. Don’t believe me? Just try holding a 15-month old baby of any tribe, color, or background when they want to be someplace else doing something else. I believe “these people” have just not had the same opportunities we have had in the USA. Given half the chance, they would grow, create, and expand their lives exponentially.
Report Post »liberalsarealiens
Posted on April 20, 2011 at 8:42amMaggie,
Respectfully, I think your forgeting the centuries of religious indoctrination. Radical religious indoctrination. They may not want the Taliban style, some do, but our kind of freedom will never exist in Afghanistan. Having traveled all over the world I have seen many different types of people.and cultures and these are some of the worst I’ve seen. With the radical movement in the Islamic world you will see very little if any real movement toward our type of freedom. Western logic is very different from their way of thinking.
Report Post »mill
Posted on April 20, 2011 at 9:40amEducation is important. However, it will take more than learning to read to change any of these people. They are entrenched in their religion, which is their way of life, which is their religion, which is…..
It would take a miracle to have these children realize there is a world out here..in which case, seeing how the world is..it might be better to stay entrenched where they are.
Besides we have bigger problems here..after all, who the heck is going to decide what Charlie Sheen is up to, where his kids are going and if his wife is hocking things..I mean i understand the news and their scrutiny of this situation…it’s far more important ..?
Report Post »bandi9
Posted on April 20, 2011 at 9:47ambeing unable to got into detail, my son was there. he said what these people want is to be left alone
Report Post »PA PATRIOT
Posted on April 20, 2011 at 7:37amMore 501-c3 Corporate Theft by leftest libs.
Report Post »DimmuBorgir
Posted on April 20, 2011 at 7:45amThe title “Three Cups of Tea” sounds soooooooooooooo gay
take that wanda sykes
Report Post »SpankDaMonkey
Posted on April 20, 2011 at 9:04am.
Report Post »more like three cups of koolaid……………
MyFreedomIsn'tForSale
Posted on April 20, 2011 at 9:38amRequired reading for our soldiers in Afghanistan? can you say BRAINWASH, i guess no longer counting their votes isn’t enugh. to bad for them there’s no atheists in a fox hole
Report Post »MontanaRob
Posted on April 20, 2011 at 9:52amI know Steve. He is a really nice guy with a great family. This he will go after, probably a worthy goal, but when it came to filing a lawsuit about the unconstitutionality of Obamacare, NO!!!!
Report Post »He is a democrapt and he will stick to the party line with all the sh!# that’s going down. This is one thing that just doesn‘t really matter much at all and he’s all over it.
I feel this is just a distraction, fiddling while Rome burns.
GEW
Posted on April 20, 2011 at 11:34amYou know what they say about setting up a charity, its the way to make a lot of money without paying taxes, then have your kids run it. They can name their own salaries and give a tad to the charity. A way to keep the wealth and, those who donate to it, all in the “family”.
Report Post »restorehope
Posted on April 20, 2011 at 3:20pmGo after this guy and look at every charity’s books. Too many shady things have been done in the name of charity and good works, mainly because the human factor of greed is there no matter how righteous you say you are. If Obama had $100,000 to donate to this charity, how about someone reminding him that charity begins at home? We have millions of needy right here in America.
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