A Snapshot of Six Arizona Charities in the Federal Government’s Annual Drive

June 14, 2007 | Read Time: 8 minutes

Several health organizations in Arizona have taken a controversial approach to seeking contributions through the federal government’s annual charity drive. Over the years, their key officials have worked together to form or operate six independent charities that seek donations through the Combined Federal Campaign without making it clear to donors that the organizations have anything in common.

The officials say one reason they have set up or run so many organizations is to gain more opportunities to attract the attention of federal workers who look through the annual catalog of more than 1,900 charities that seek donations nationally.

Shown above are the 25-word descriptions that each of the six Arizona organizations used in the 2005 drive to explain their missions to federal workers considering making gifts. The government allows each charity to draft such a description and place it in the annual catalog of eligible groups.

The federal government’s charity drive takes place each year from September 1 through December 15. Each charity’s fiscal year begins October 1.

Figures provided here were drawn from federal informational tax returns filed by the Arizona charities. The 2005 federal informational tax return for the Breast Cancer Research and Assistance Fund has not yet been made public.

Organization: Breast Cancer Research and Assistance Fund
NOTE: All data for this organization is for fiscal years 2003 through 2004 only.

Description provided to federal workers: “Provides research grants, medical equipment and supplies to hospitals; provides cancer support groups, educational materials for patients and families. Curing begins with our compassionate care.”

Pledges from federal government’s annual charity drive (fall 2003 to 2005): Not available

Total cash contributions (fiscal 2003 to 2005): $582,141

Contributions of donated goods (fiscal 2003 to 2005): One recipient:

$758,071, or 100 percent, in assorted medicines and medical supplies to Missionaries of the Poor Sisters, Naga City, Philippines.

Contributions of cash: $112,300 in 15 grants to 11 recipients, including:

$25,000, or 22 percent, in grants to two Arizona organizations with which it shares an overall mission.
$25,000, or 22 percent, to Mexican Medical Inc. (Mexican Medical Ministries), Chula Vista, Calif.
$23,000, or 20 percent, to the Oasis of Hope Hospital, Tijuana, Mexico.
$20,000, or 18 percent, to the AIDS Research and Assistance Institute, Mansfield, Tex. (Formerly called the AIDS Awareness/Assistance Fund, Imperial, Mo.)

Top paid officials:

Joy MacKay, president: $71,600 in 2004 for 40+ hours per week.
Colin Aldridge, vice president: $36,151 over two years, 40+ hours per week.

Charity address: House of Joy and Larry MacKay

Organization: Cancer Aid and Research Fund

Description provided to federal workers: “Awards scientific research grants, provides medical supplies and equipment to alternative therapy programs and cancer support groups, and distributes information about effective new therapies. Curing begins with Caring!”

Pledges from federal government’s annual charity drive (fall 2003 to 2005): $1,768,364

Total cash contributions (fiscal 2003 to 2005): $1,796,207

Contributions of donated goods (fiscal 2003 to 2005): $7.2-million to four recipients:

$3,784,897, or 52 percent, in medical supplies and nutrition supplements to Missionaries of the Poor Sisters, Naga City, Philippines.
$3,072,883, or 42 percent, in medical supplies and nutrition supplements to Ministerio Esperanza de Vida, Guatemala.
$399,500, or 5.5 percent, in flax hull lignans to support an unidentified program in Piet Retief, South Africa.
$1,500, or less than 1 percent, for a painting provided to a program identified as Wings of Faith.

Contributions of cash: $1,010,488 in more than 43 grants to more than 25 recipients, including:

$621,200, or 61 percent, to six Arizona organizations with which it shares an overall mission.
$204,000, or 20 percent, to the Oasis of Hope Hospital, Tijuana, Mexico.
$67,000, or 7 percent, to the Alternative Cancer Research Fund, Phoenix.
$21,600, or 2 percent, to Coming Alive in the Spirit, Phoenix.

Top paid officials:

Larry MacKay, president: $301,071 over three years, 20 or 20+ hours per week.
George Zaksek, secretary/treasurer or employee, $295,530 over three years, 20 or 20+ hours per week.

Charity address: House of Joy and Larry MacKay

Organization: Children’s Cancer Aid and Research Institute

Description provided to federal workers: “Provides childhood cancer research grants. Assists children with cancer and their families. Provides summer camp sponsorships and support groups. ‘Together we are their hope!’”

Pledges from federal government’s annual charity drive (fall 2003 to 2005): $921,503

Total cash contributions (fiscal 2003 to 2005): $721,983

Contributions of donated goods (fiscal 2003 to 2005): One recipient:

$1.2-million, or 100 percent, in assorted medicines, medical and nutritional supplies, and pre-natal vitamins to Ministerio Esperanza da Vida, Guatemala.

Contributions of cash: $229,440 in more than 29 grants to more than 16 recipients, including:

$98,500, or 43 percent, to four Arizona organizations with which it shares an overall mission.
$49,300, or 21 percent, to the Oasis of Hope Hospital, Tijuana, Mexico.
$22,000, or 10 percent, to the Children’s Corrective Surgery Society (also known as COAD International Field Programs), Escondido, Calif.
$20,500, or 9 percent, to the AIDS Research and Assistance Institute, Mansfield, Tex. (Formerly called the AIDS Awareness/Assistance Fund, Imperial, Mo.)

Top paid officials:

Michael MacKay, president: $135,210 over three years, 40+ hours per week.
Danny Dozier, vice president: $24,865 over three years, 20+ hours per week.

Charity address: House of Joy and Larry MacKay

Organization: Diabetes Aid and Research Fund

Description provided to federal workers: “Awards scientific research grants. Children’s camp sponsorships, support groups for patients and families. Diabetes information, educational, nutrition and self-management programs. Together achieving a healthier Lifestyle.”

Pledges from federal government’s annual charity drive (fall 2003 to 2005): $2,438,866

Total cash contributions (fiscal 2003 to 2005): $2,071,449

Contributions of donated goods (fiscal 2003 to 2005): $11.1-million to five recipients:

$4,872,411, or 44 percent, in medical and surgical supplies and nutritional supplements to Missionaries of the Poor Sisters, Naga City, Philippines.
$3,164,110, or 28 percent, in food and supplies and educational material and books to an unidentified “Native American Reservation Program.”
$2,151,631, or 19 percent, in medical and surgical supplies and nutritional supplements to Ministerio Esperanza de Vida, Guatemala.
$925,000, or 8 percent, in medical equipment to Oasis of Hope Hospital, Tijuana, Mexico.
$64,150, or less than 1 percent, in medical and surgical supplies and nutritional supplements to Children’s Feeding Network, Mansfield, Tex.

Contributions of cash: $1,284,170 in more than 75 grants to more than 40 recipients, including:

$667,650, or 52 percent, to 10 Arizona organizations with which it shares an overall mission.
$101,000, or 8 percent, to the Family Diabetes Assistance Fund, Calexico, Calif.
$84,50, or 6.6 percent, to the American Indian Children’s Hunger Fund, Laveen, Ariz.
$56,000, or 4 percent, to the Alternative Cancer Research Fund, Phoenix.

Top paid officials:

Carol Zaksek, president: $395,789 over three years, 40+ hours per week.
Joy MacKay, vice president: $111,833 over two years, 40+ hours per week.

Charity address: House of Carol and George Zaksek

Organization: Childhood Diabetes Research Institute

Description provided to federal workers: “Provides sponsorships for children’s diabetes camps. Nutrition information, support groups, and health fairs. Research grants for diabetes and degenerative diseases. ‘Together making their miracle happen.’” (In 2005 the charity was listed in the category for international groups in the federal catalog.)

Pledges from federal government’s annual charity drive (fall 2003 to 2005): Not available

Total cash contributions (fiscal 2003 to 2005): $625,728

Contributions of donated goods (fiscal 2003 to 2005): $1.2-million to three recipients:

$476,246, or 39 percent, in medicines and nutritional supplements to Ministerio Esperanza de Vida, Guatemala.
$401,572, or 32 percent, in unidentified goods to Children’s Relief Mission, Owensville, Mo.
$359,847, or 29 percent, in medical supplies to Church of the Nazarene, Phnom Penh, Cambodia.

Contributions of cash: $405,950 in 36 grants to 22 recipients, including:

$134,000, or 33 percent, to four Arizona organizations with which it shares an overall mission.
$122,500, or 30 percent, AIDS Research and Assistance Institute, Mansfield Tex. (formerly called the AIDS Awareness/Assistance Fund, Imperial, Mo.)
$45,500, or 11 percent, to the Children’s Corrective Surgery Society (also known as COAD International Field Programs), Escondido, Calif.
$22,300, or 5 percent, to the American Indian Children’s Hunger Fund, Laveen, Ariz.

Top paid officials:

George Zaksek, president: $37,000 in 2005, 20+ hours per week.
Rhonda Key, president: $46,100 in 2003 and 2004, 20+ hours per week.
Matthew Zaksek, employee: $10,005 in 2005, 20+ hours per week.

Charity address: House of George Zaksek

Organization: Childhood Leukemia Research and Assistance Fund

Description provided to federal workers: “Provides medical research grants and medical supplies to hospitals and clinics seeking a cure for childhood leukemia and other terminal diseases. ‘Caring finds a cure.’”

Pledges from federal government’s annual charity drive (fall 2003 to 2005): Not available

Total cash contributions (fiscal 2003 to 2005): $383,385

Contributions of donated goods (fiscal 2003 to 2005): One recipient:

$935,183, or 100 percent, in medical supplies to Missionaries of the Poor Sisters, Naga City, Philippines.

Contributions of cash: $216,000 in 24 grants to 14 recipients, including:

$72,500, or 34 percent, to two of the 12 Arizona organizations with which it shares an overall mission.
$32,500, or 15 percent, to American Indian Children’s Hunger Fund, Laveen, Ariz.
$31,500, or 14 percent, to the AIDS Research and Assistance Institute, Mansfield, Tex. (Formerly called the AIDS Awareness/Assistance Fund, Imperial, Mo.).
$19,100, or 9 percent, to Christian World Relief, St. Louis, Mo.

Top paid officials:

Louise White, president: $56,926 over three years, 20+ hours per week.

Charity address: House of Louise White (located at the house of George Zaksek, in 2001 and 2002)

ABOUT THIS TABLE

Most of the charitable work of the six organizations involves obtaining donated goods and providing those goods to charities and projects in the United States and in other countries. The charities reported contributing goods worth a total of $22.5-million to other organizations over the past three years. About $17.2-million, or 76 percent, of the gifts were medical, surgical, and nutritional supplies and supplements that the charities said they provided to two organizations: Missionaries of the Poor Sisters, in the Philippines, and Ministerio Esperanza de Vida, or Hope of Life Ministry, in Guatemala.

The largest share of the $3.2-million in total cash gifts that the six Arizona organizations reported making over the past three years–$1.6-million, or 50 percent–went to each other or to several other Arizona charities.

Two longtime officials (George Zaksek and Larry MacKay) of the Don Stewart Association–a religious organization in Phoenix–and their wives (Carol Zaksek and Joy MacKay) and sons (Matthew Zaksek and Michael MacKay) have been compensated for their work in recent years by several of the Arizona charities.

All six charities have used the home address either of the Zakseks or MacKays, according to the organizations’ federal informational returns or filings with the Arizona Corporation Commission.