We are all for charity

Charity has to be clearly defined - what does this ‘Charity’ Softball Game mean?

The Transit Workers Appreciation Day is on June 4th 2011 with a presumption of violating the IRS code in three instances. We cannot ignore, overlook or sweep it under the rug. Thus the following:

TWU LOCAL 100 HAITI RELIEF FUND

TWU Local 100 Haiti Relief Fund (the "Haiti Fund") was a segregated bank account set up by the Local in 2010 that was funded by a $50,000 donation from 80 Weth Corp (the "Building Fund") as well as donations from active and retired members for approximately $46,000. The purpose of the Haiti Fund was to make donations to organizations that provided relief to victims of the 2010 earthquake that affected Haiti.

As a result of the application of the procedures described above, we found the following:

1) There was a $50,000 donation made by Building Fund to the Haiti Fund. We could not

find evidence in the minutes of the meetings held by the Executive Board during the

Relevant Period that the Executive Board approved this donation despite the fact that the

minutes of the Executive Board meeting held on January 25,2010 requires prior approval

of the Executive Board for spending moneys from the Building Fund for operating

purposes. In this regard, Mr. Samuelsen told us that notwithstanding the fact that the

minutes do not reflect the Executive Board's approval, all members of the Executive

Board were poled for their approval and that they unanimously approved the donation.

2) The Local made a donation from the Haiti Fund of $77,983.28 on November 5, 2010 to Batay Ouvriye, a labor organization (rather than a charity) that is located in Haiti and that according to its website "www.batayouvriye.org," claimed to have been performing some relief efforts in Haiti. In this regard, we were not able to find this organization in IRS Publication 78, Cumulative List of Organizations described in Section 170(c) of the

Internal Revenue Code of 1986, which lists organizations eligible to receive tax deductible charitable contributions.

Mr. Samuelsen explained to us that he observed a speaker from Batay Ouvriye at a Labor

Notes Convention in Detroit in April 2010 and that he was very impressed with the

speaker's description of the relief work/labor organizing model which the speaker

described at length. Mr. Samuelsen stated that when it came time to make a final decision

as to where to donate the monies left in the Haiti Fund, he decided to have them donated

to Batay Ouvriye. Mr. Samuelsen told us that he did some research on them online and

became convinced that the Local's donation was well placed with this organization. We

were not able to corroborate Mr. Samuelsen's explanation.

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Salibello fit Broder LLP

Certified Public Accountants

In addition, the wire transfer to Batay Ouvriye was signed only by John Samuelsen.

According to TWU of America's constitution, Article XVI, Sections I and IV, and the

Local's by-laws, Articles III and VI, the president can only countersign checks and all

checks must be signed by the Local's Secretary Treasurer. Because of the fact that Israel

Rivera was removed from office before the wire transfer was issued, the wire transfer

carried only the signature of John Samuelsen; however, Mr. Samuelsen did not wait

before authorizing the wire transfer until the Executive Board had appointed a new

Secretary-Treasurer (see Article IX (a) of Local's by-laws) that could have signed the

wire transfer as well.

3) The Local made a donation from the Haiti Fund of $6,000 on April 9, 2010, to

IFCOlPastors for Peace, which according to its website "www.pastorsforpeace.org," is an

ecumenical agency whose mission is to help forward the struggles of oppressed peoples

for justice and self-determination. In this regard, we were not able to find this

organization in IRS Publication 78, Cumulative List of Organizations described in

Section 170(c) of the Internal Revenue Code of 1986, which lists organizations eligible to

receive tax-deductible charitable contributions.

With regard to this donation, Mr. Samuelsen told us that a member of the Local traveled

to Haiti and verified that the relief container was received. We were not able to

corroborate Mr. Samuelsen's explanation.

4) The Local made a donation from the Haiti Fund of $1,500 on April 29, 2010, to an

organization named "Project: Overflow", through a check made to Galapagos at DUMBO

Inc, to cover the costs of rental fees for the Galapagos Art Space for a fundraising event

termed "Haiti + love" organized by Project: Overflow. The fundraising event was

supposed to be a fashion show that would have raised moneys for Haiti. In this regard, we

were not able to find this organization in IRS Publication 78, Cumulative List of

Organizations described in Section 170(c) of the Internal Revenue Code of 1986, which

lists organizations eligible to receive tax-deductible charitable contributions.