« The Porta-Pup 2000 | Main | »
26 juni 2006
Examining Elvisfest
A KIND READER WRITES:
"Just perused the July Depot Town Rag. The front page states a claim that "All profits from the festival are donated to charity." Elvisfest is a nonprofit, and as such is not supposed to have "profits". However, to give the impression that they actually support charaties with the money they generate, the Depot Town Association listed, bullet by bullet, where the dough goes:
"The first two bullet points were transitional housing and summer camps for poor children: The reality is that Michigan Elvisfest has to purchase a $5000 license from Elvis Presley Enterprises (EPE) to conduct the festival using Elvis' name, likeness, and catch phrases ("thank you very much", etc). EPE, in turn, directs a portion of proceeds from the license revenue to a cause called "Presley Place", a transitional home for kids that also operates summer camps. In short, Michigan Elvisfest is not donating to Presley Place, they are buying a license to make money.
"The next three bullets have to do with playgrounds, city park improvements and public projects. In reality, that is the money Elvisfest pays the City of Ypsi for the use of Riverside park, the public utilities, police protection, etc. Though the city is in bad financial shape, it is still not a bonafide charity.
"The last two bullet points, FAN donation of stuffed toys, phone cards and miscellaneous items to Mott Childrens Hospital and the Salvation Army, has absolutely nothing to do with any monetary donation from Michigan Elvisfest, and as such, should not even be included in the list. The FANS donate these items.
"In summary, All of this begs the question... What does the DTA and Elvisfest do with the six-figure profits they receive from the gate, beer sales, concession sales and now.... gambling profits? Now I said profits, not gross, but net.
"Anybody out there know? You really should care, as somebody might be pocketing a ton of money out of this, and cheating the government out of its due, which cheats all of us."
Posted by ypsidixit at 26 juni 2006 08:38
Comments
Presley Place is pretty cool:
"Presley Place provides homeless families a up to one year of rent-free housing, child day care, career and financial counseling, family management guidance and other tools to help them break the cycle of poverty and regain self-esteem and independence."
Posted by: Laura at 26 juni 2006 10:43
That list of places where the money goes does seem fishy, now that you mention it. I know it's a hugely profitable festival, especially since they jacked the price way up in the past few years.
A question worth asking. Are a non-profit's books open to the public?
Posted by: Laura at 26 juni 2006 10:45
Yeah it is cool... I've driven by it on a trip to Memphis. It is an oasis in the middle of an actual ghetto.
But Elvisfest doesn't support it... EPE does. Elvisfest gets a license to make money, that they wouldn't have if they didn't pay the $5K, no matter what EPE did with the money.
Posted by: In the Know! at 26 juni 2006 10:47
You can look at their tax returns and supporting documentation for the last 3 years. that won't tell you much if they "cook the books".
Posted by: In the Know! at 26 juni 2006 10:49
I like to think, with some degree of self-delusion, that most people are of reasonable good will. So, in the phrase "if they cook the books" the operative word is "if."
The fact remains that this fest rakes in a LOT of money, and it's not clear to me where it's going. Who's running it?
Posted by: Laura at 26 juni 2006 10:53
The depot town association are the financial backers. A nice elderly lady named Mary Decker is the director, however she takes her direction from a fellow named Gerry French, who is Bill French's (Cadys & Aubree's) brother.
true, the opreative word is "if"... however I've seen the budget which gives me a bit more insight.
Posted by: In the Know! at 26 juni 2006 11:47
It would be quite interesting to see the budget. The more I ponder the bullet points you mentioned, the more suspect this seems.
Posted by: Laura at 26 juni 2006 11:50
The budget was based on a total attendance of about 6,000 fans. After all expenses, they predicted a net profit of around $56,000. However, that was before the inclusion of their gambling tent, which they will receive 50% of the proceeds. Additionally, their press release states Elvisfest expects attendance of around 10,000. The additional 4,000 fans would put their net profits past $100,000, with no additional expenses.
Posted by: In the Know! at 26 juni 2006 11:57
Back to your "if" statement... "if" they were on the up and up, why wouldn't Elvisfest mention the actual charaties to which they donate monies? Why would they make such "smoke screen" statements about what they do claim to support?
Posted by: In the Know! at 26 juni 2006 12:08
Elvisfest and the Ypsilanti area seem like a perfect match. When the event was first proposed to the Depot Town Association, it was for start up funding. Unfortunatly, it's appeal and subsequent success effectively pulled the plug out of other worthy events which had always struggled with finding sponsors i.e. a dead rock star has much more public appeal than a long dead president, so the Ypsilanti Civil War Muster demise was partially the result of Elvisfest. The bottom line is: If the event can make money for the sponsors, then the sponsors will pony up the support. The Civil War Muster was never designed to "make" money, and in that aspect, it was hugely successful!
Posted by: J Delcamp at 26 juni 2006 13:10
I have attended the Muster and miss it. But in my dim way I must say I don't see the connection between the startup of Elvisfest and the sad demise of the Muster.
Posted by: Laura at 26 juni 2006 13:14
"Non-profit" does not have to mean "taking in no money." "Non-profit" means "no investors making money."
* A non-profit can pay employees. It can pay them as much as it wants, really.
* A non-profit can hold "staff training" in Aruba.
* A non-profit can have funding reserves against hard times.
* A non-profit can make donations to other non-profits.
Just because Elvisfest has "proceeds" (which I suspect is what they mean, technically, when they say "profits") doesn't mean they're scamming the Feds. Your kind reader, in my opinion, needs to either provide evidence (or at least reasonable suspicion) of wrongdoing, rather than just finding ways to make everything sound bad, which seems to me what's presented above.
Posted by: Anon. at 26 juni 2006 13:40
You are right. Hearsay is just hearsay and in all fairness statements about Elvisfest should be based on fact.
Anyways, I know that Elvisfest does give money to Food Gatherers, to offer one fact.
Posted by: Laura at 26 juni 2006 13:43
Anon's statement (two comments up) is exactly what i was going to say myself. A non-profit organization is simply one that doesn't have a financial structure in which they reward dividends to stock holders or investors, in the classic definition of those terms.
They can make huge profits, millions in the case of the largest organizations, and that is as much their goal as it is to fulfill whatever mission statement they've adopted. If this wasn't allowed, everything from the Red Cross all the way down to the Ypsilanti Historical Society simply wouldn't exist. If you just 'break even', you will never be able to enhance your services or facilities. If you don't have specific plans for the funds, that's where your "endowment" comes into play, which you try to build and, in a perfect world, keep untouched and use the interest of to fund your operating expenses. I'm going to be registering as a non-profit, and have worked with many of the same, and while there are loopholes in the system to allow some exploitation, overall it's a fairly sound and generally honest framework.
That having been said, I should clarify that I agree with J Delcamp's observation above, as I personally think there's zero local meaning to an ElvisFest, and that it detracts from (or in some cases eliminates) other more valuable summer events.
Posted by: brett* at 26 juni 2006 14:01
There is indeed zero local meaning in Elvisfest.
A sadder truth is that there is zero local meaning in Heritage Fest.
Posted by: Laura at 26 juni 2006 14:03
OK, fair enough... I filly understand the meaning of a nonprofit, being a lawyer. However, they did use both terms, profits and proceeds, and the stuff they stated where the money goes is a bit smokey. Also, as sad as the heritage fest has become, at least they don't charge admission to our own park for the event.
All i ask is that E-fest pony up and tell us which specific charities they DO support. And if they can't or won't, WHY?
Posted by: In the Know!! at 26 juni 2006 14:11
Their PR says:
-transitional housing for children
-summer camp for underprovileged children
-physical improvement to city parks
-construction of park playgrounds
-other public projects
-Mott Children's Hospital: collection of new stuffed toys & phone cards
-Food Gatherers: collection of non-perishable foods
-VFW C. Robert Arvin post 2408: collection of toiletries and other items
-door prizes will be given out for these "special" donations.
It's worth noting that in addition to the now-pricey admission price, plus charging for food and drink, Elvisfest *also* has a long list of sponsors who have ponied up wads of cash, including:
Four "Kings" at $5,000 and up (including City of Ypsilanti)
Four "Teddy Bears" at $2,000-$4,999
Eleven "Hound Dogs" at $1,000-$1,999
Nine "Blue Suede Shoes" at $500-$999
Four "Rock-a-Hula Babies" for an unknown amount
Eight "Little Darlins" for an unknown amount.
So even if we take the low end of each spectrum and ignore the last 2 categories, we're still talkin' $43,000 right there.
Posted by: Laura at 26 juni 2006 14:26
Um, instead of the city paying Elvisfest and then Elvisfest proceeds providing "physical improvement to city parks," wouldn't it be more...direct...if the CITY just improved its own parks with that money?
And what does "other public projects" mean?
Anyone recall seeing a plaque in a playground around town that says "Made possible by Elvisfest"?
Me neither.
Posted by: Laura at 26 juni 2006 14:31
Food gatherers... That's what they do... gather food. No money is donated to them. Fans bring canned items to the festival. Also, companies donate the door prizes. All Elvisfest does is collect.
\Is it starting to make sense? Their own PR is tattling on them. You just have to read between the lines with your eyes open.
Posted by: In the Know!! at 26 juni 2006 14:35
So, let's look hard at this.
The first two items on the list, above, of where the money goes seem to pertain to the Presley Place in Memphis.
The last item in the bullet list is not one of the places where the money goes; it's unclear why this is included in the list.
The remaining items are:
-physical improvement to city parks
-construction of park playgrounds
-other public projects
Like what?
Posted by: Laura at 26 juni 2006 14:35
Dont forget, the money paid to EPE is for a license to operate and use Elvis' likeness, etc. Not a charitable donation to Presley Place.
It is perfectly clear to me why the list is so padded... just for that reason. No substance.
These last bullets are monies paid to the city for use of the park, police protection, etc. The city diverts the money to wherever. Incidently, the Elvisfest committee was totally against the building of a playground in Riverside park because it would detract from the festival. Like what? Who knows. Doesn't matter... a city is not a charity.
Posted by: In The Know!! at 26 juni 2006 14:49
From the Elvisfest website,
"If you have additional questions that have not been answered by our website, please call 734-480-3974 X 2."
In The Know, I'm curious to hear your full report on where the money is going.
Posted by: Anon. at 26 juni 2006 16:36
Wow, it sounds like the Elvisfest people have been a little short on honesty about all this. I don't like to make accusations, but it appears the in the know person has a number of good points.
Posted by: Frank at 26 juni 2006 16:38
Anon... I don't have a clue where the money is going. That's what I believe the question is here. You, from the Elvisfest Website, should be able to tell us. The weak excuse for an explanation in the Depot Town Rag makes folks even more wary of the DTA's motive for running this event as a nonprofit. Most other Elvis shows across the fruited plain are organized as "for profit" ventures.
Anon... instead of me having to call, let's hear it from you where the money is going.
Posted by: In the Know at 26 juni 2006 16:47
but it appears the in the know person has a number of good points.
not to mention a pseudonym starting with an F.
Posted by: Twinkletoes at 26 juni 2006 16:48
F? I've been known as a lot of things but never an F.
I do however present a lot of good points on this topic that maybe Mary Decker, the e-fest director, can answer. I know she contributes to this blog from time to time. Maybe Mary can enlighten us.
Posted by: In the Know at 26 juni 2006 17:11
Or someone else connected with the Fest. I'd like to know, too.
Posted by: Laura at 26 juni 2006 17:13
The ElvisFest folks have been generous over the past several years, donating money to specific park improvements, for example, that the City did not have the money for. Starting this year, they will work on building up their cash reserves, as fees and licensing costs are going up.
Posted by: Brian Filipiak at 26 juni 2006 18:39
Brian: That's cool about the parks. But I'm afraid I still don't quite grasp, in my fogheaded way, why the city would give money to E-fest instead of spending it directly on parks improvements.
Posted by: Laura at 26 juni 2006 19:43
In the know: Food gatherers... That's what they do... gather food. No money is donated to them. Fans bring canned items to the festival. Also, companies donate the door prizes. All Elvisfest does is collect.
Oopsie, I missed this comment of yours earlier. I didn't realize E-fest did NOT donate money to them, just the cans that fans bring. It's cool that they serve as a venue for food collection. But it does involve minimal effort, and having a bin for fan-donated cans is a tad different than giving $43,000 to the cash-strapped Food Gatherers.
I was talking to someone at FG the other day. She told me their gasoline costs for their five food collection vehicles has gone up since about a year ago from $250 to $400 a week. She also said that that is one cost they can't cover with grants, &c.; they just have to find their own way to somehow pay it.
Posted by: Laura at 26 juni 2006 19:51
Brian: What park improvements? I haven't seen any. Can you be specific?
Posted by: In The Know at 26 juni 2006 20:10
Yes, one does become curious. What, pray, are these fabled improvements?
The asphalt path in what is arguably Ypsilanti's most-used park, Riverside Park, is mighty crumbly.
Posted by: Laura at 26 juni 2006 22:44
"Anon... instead of me having to call, let's hear it from you where the money is going."
How the heck am *I* supposed to know where the money goes? I am in no way related to Elvis-fest, have never even attended one, and will be out of town the weekend it appears to be taking place this year.
You seem to have some serious concerns about Elvisfest, but the manner in which you're presenting them could be better classified as "wild accusations". Since you seem about 20 times more concerned than I am at the moment, I'd be interested to see you present enough information (rather than just spreading fear, uncertainty, and doubt) to raise my concern level to something approximating yours. The point of my comment was that you seem to have something worth investigating, so - investigate.
Posted by: Anon. at 27 juni 2006 09:20
For all we know it could be perfectly legit because we're just missing some info. Yes, to echo Anon., some cold hard facts are needed here.
Posted by: Laura at 27 juni 2006 12:36
As Brian said, they're building cash reserves, and as both Anon. and I said, that's a perfectly legitimate and legal thing for non-profits to do.
They're putting their profits in a bank account. That's it. End of conspiracy theory.
I love conspiracy theories, I love discovering corruption at work in non-profits, I don't like ElvisFest, and most importantly, I really, REALLY don't like Elvis, but despite all that, these particular accusations of InTheKnow seem groundless.
They're just Takin' Care of Business. Literally.
Posted by: brett* at 27 juni 2006 15:07
I'm glad we sorted that out.
I don't like Elvis's music, but I'm fascinated by his biography. I have no fewer than three different ones and enjoy reading about him for reasons unknown even to me.
Posted by: Laura at 27 juni 2006 15:09
Ok, so I will investigate further. First on the agenda is a request of their nonprofit tax returns and supporting documentation for the last three years. This, as a nonprofit, they are bound by law to supply. All I need to pay for is a nominal fee for photocopying and postage.
It's not sorted out yet, but soon will be, as they have to honor the request within 30 days of its receipt.
I, too, am TCB.
Posted by: In the know!! at 27 juni 2006 17:06
Hi,
I am the secretary of the Depot Town Association who is responsible for putting Elvisfest on. Your blog was forwarded to us.
I understand your concerns and we are more than willing to sit down and explain who we are and what we do. You are misinformed in many areas and we would like to clarify what ever we can for you. We believe in being transparent so we would like to offer to meet with Laura and "In the Know" to answer questions and concerns you have. You are also welcome to attend any Depot Town Association meeting, which is held the third Wednesday of the month, 6:30, at Standard Printing (we're off the month of August) to ask questions or gain information.
I guarantee we are good guys and give back to the community in many, many ways. We definitly aren't takers! We'll provide our 990's for you if you still request them. If you'd like to email me, I'll also give you Gerry French's and Mary Decker's cell phone numbers so you can speak to the director directly. (By the way, Mary might have gray hair, but she is definitely NOT elderly :>)
Hey, if you have concerns....go to the festival organizers. We're happy to welcome you into our association...the DTA that is....
Sandee French
Posted by: Sandee French at 28 juni 2006 15:28
Sandee,
That's nice of you to stop by. Thanks. This isn't really a concern of mine, really, but of In the Know, whomever that may be. I hope In the Know obtains the info they seek.
Posted by: Laura at 28 juni 2006 15:32
In the know thinks there is something we're trying to hide, which couldn't be further from the truth. The conspiracy theory is really funny! The DTA is one of the longest running community groups in the state and we would never do anything to spoil our reputation. We have been in existance for over 30 years...non-stop.
I hope you and In the know and will take the time to meet with us, ask questions, and spread the word. If you want to TCB, let's talk. There are WAY too many inaccuracies to correct in a blog.
By the way, I'm not an Elvis fan either but the festival has put Ypsi on the map, at least as far as REAL Elvis fans go. Call the Marriott and ask how many rooms they have available that weekend...or the Parish House...or the Comfort Inn...It is good for Ypsi because it helps our economy and is a great way for new people to be introduced to Ypsi.
Posted by: Sandee French at 28 juni 2006 17:30
Conspiracy? Who said anything about a conspiracy?
All I asked was about the charities Elvisfest donates all of their profits and/or proceeds to as stated in the Depot Town Rag. This fundamental question has yet to be answered.
Sandee, you mention all the business Elvisfest brings Ypsi. Is that what's meant by charity? You say your organization is transparent, yet you didn't answer any of the questions.
No one would care about your 990's if you would just tell us in this blog which charities Elvisfest directly supports with money. We shouldn't have to go to a DTA meeting for that information.
Please, just answer the question it here. We'll be sure to "spread the word".
Posted by: In the Know! at 29 juni 2006 00:40
I gotta tell you...I'm just not a blogger but the offer to meet still stands. I can be reached at Aubree's during the day 483-1870 and you're welcome to call. I'll give you the phone numbers of the directors and you can either chat on the phone with them or have a meet and greet.
I wish you well and I hope you'll stop by next weekend. Whether you're an Elvis fan or not, it's a great time!
Elvis has left the building............
Posted by: Sandee French at 29 juni 2006 07:28
Sandee...
Elvis has left the building??? You aren't a blogger? You're doing just fine!
Again, Please, just answer the question here.
We'll be sure to "spread the word", and this whole thing will all go away. Come on Sandee, tell us.
What are the charities the DTA donates Elvisfest proceeds to?
Posted by: In the Know at 29 juni 2006 23:06
"Conspiracy? Who said anything about a conspiracy?"
I think you did. Repeatedly.
Conspiracy (noun):
1- a secret agreement between two or more people to perform an unlawful act
2- a plot to carry out some harmful or illegal act (especially a political plot)
3- a group of conspirators banded together to achieve some harmful or illegal purpose
"You aren't a blogger?"
No, she isn't. Note the way she's leaving a comment, as opposed to writing the post itself. It may seem like a subtle difference, but I would strongly advise you, "In the Know," to register with blogspot or livejournal, and start your own weblog, and after a while you will probably begin to note that it's a bit more complicated than just leaving comments, and not the same thing at all.
I've said it before, but as I've already written this much I may as well say it again: There is nothing suspicious, illegal, or immoral about ElvisFest saying their profits or proceeds fund charities, which they clearly do, and at the same time taking some of that money and using it to maintain or expand their programming. If you are honestly saying that this is suspect, then you are similarly indicting all non-profits everywhere, as it's the way all of them operate.
Posted by: brett* at 30 juni 2006 12:09
Ok Brett. I am not indicting anybody, including Elvisfest or any nonprofit.
Seems as if some are trying to make me out as the bad person for asking a question.
Again, I'm merely asking a question. What charities do the DTA directly support with Elvisfest money. I'm sorry, but what seems clear to you is awfully confusing to me.
Elvisfest made the statement regarding their proceeds, profits, whatever.
Maybe you can answer the question since no one else has...
Otherwise my curiosity will be sufficently peaked to request their 990s.
Just somebody tell us here.
Posted by: In the Know! at 30 juni 2006 21:44
Ok Brett. I am not indicting anybody, including Elvisfest or any nonprofit.(Your're certainly accusing Elvisfest of questionable behavior, and doing so in a public forum.)
Seems as if some are trying to make me out as the bad person for asking a question. (To be clear, the irritation results from your asking the question repeatedly, after you've already been given an answer several times)
Again, I'm merely asking a question. What charities do the DTA directly support with Elvisfest money. I'm sorry, but what seems clear to you is awfully confusing to me.(-transitional housing for children,-summer camp for underprivileged children,-physical improvement to city parks,-construction of park playgrounds,-other public projects,-Mott Children's Hospital: collection of new stuffed toys & phone cards,-Food Gatherers: collection of non-perishable foods. Most of these are "Donations" in a sense you don't seem to appreciate, namely, Elvisfest organizes the activity to occur, thus they spend money and energy enabling the situation to transpire in which cans of food, for example, can be collected. )
Elvisfest made the statement regarding their proceeds, profits, whatever. (Yes, they did, and you've had two different representatives offer to meet in person and show you the details of such.)
Maybe you can answer the question since no one else has...(I can only answer general questions about non-profits, and know nothing about Elvisfest, although this conversation is turning everyone that reads it into an expert on the subject.)
Otherwise my curiosity will be sufficently peaked to request their 990s.(I thought your curiousity had reached that level when you first brought the matter up. Request them, read them, share your findings with the world, but don't expect people to be interested in a repeated statement of intent.)
Just somebody tell us here.(I'm not sure who "US" is. This blog is run by a lone individual, and the commentors seem fairly united in their rejection of your assertions.)
You have now repeated most of your assertions a dozen times, and I've wasted enough effort in trying to reply to them. I'll be very interested to hear about your findings, but I'm not going to answer the same questions again, and until you provide some new information, I suspect this is the last response you'll be getting from anyone.
Good luck.
Posted by: brett* at 01 juli 2006 13:12
Fair enough.
Posted by: In the Know! at 01 juli 2006 16:19