Shane Warne's charitable foundation under legal scanner

From 2011 to 2013 Warne’s foundation donated a very small amount of the fund raised

Legal troubles are brewing for spin-whiz Shane Warne as his charitable foundation, The Shane Warne Foundation (TSWF) is under investigation for its financial practices. An investigation conducted by The Sunday Age has revealed that from 2011 to 2013 though TSWF raised $1.8 million, average of only 16 cents of every dollar was donated to the needy.

The investigation report also states that the foundation spends more on celebrity events than it donates to institutions that look after sick and underprivileged children. The spin star’s brother received a salary of nearly $80,000 per annum, while TSWF donated only $54, 600 to its beneficiaries.

The mission of this foundation is to "raise funds to help enrich the lives of seriously ill and underprivileged children and teenagers in Australia". Apart from helping individual families, they also extend monetary help to organisations such as the Starlight Foundation and Clown Doctors.

The foundation spent more on star-studded events

At a time, Warne’s foundation was facing huge financial losses. According to the documents acquired, even during this loss, more than $300, 000 was spent on catering, alcohol, merchandise and prizes for events. The Australian Charities and Not-for-profits Commission has strict rules for public disclosure. However, this foundation is not listed with the national regulator and does not release its financial records.

The Sunday Age got hold of TSWF’s records for 2011-13 under a provision of Victoria’s Fundraising Act. The foundation’s financial records for later years were either missing or not available. The documents that were obtained revealed that though $1.8 million was raised over these years, the amount donated was only $281, 000 while expenses were more than $1.2 million.

The cricketer’s foundation suffered loss for two consecutive years and the amount of donation dropped nearly 70 percent from $177,000 in 2011 to $54,600 in 2012. In 2013, TSWF saw a little improvement with $494, 345 as the bottom line but that year too, they donated only $50, 000 to charities.

Shane Warne’s brother Jason served as the foundation’s general manager from 2011 to 2013. During his tenure, he was paid more than $210, 000 and his annual salary was more than the amount distributed to charitable institutions. In 2014 Emma Coleman became the general manager and according to her the Consumer Affairs were satisfied with this foundation.

Current general manager denies any ongoing investigation

The Sunday Age had applied in September under the Fundraising Act to obtain the financial report of 2014-15. In late October, TSWF had asked the newspaper to give them three weeks to prepare the report. However, later the foundation released a statement to Herald Sun saying that the regulators are happy with the foundation. Coleman said, “They (Consumer Affairs) were satisfied with the explanation and with steps we had taken to address the issues and went on to grant the licence.”

A spokeswoman from Consumer Affairs Victoria told The Sunday Age that the body is conducting an investigation of the foundation. However, Coleman has denied any such development. Warne was unavailable for comment.

Australia’s charity sector is already experiencing a setback. The Australian Charities and Not-for-profits Commission is looking at groups that don’t file annual financial reports. More than 8000 charities have been threatened that their registration will be revoked if norms are not followed.