Subject: Pallotta defenders make big $$$ as AID$ Industrialists
From: [email-masked]
Date: Mon, 9 Jun 1997 16:13:44 -0400 (EDT)

ACT UP Washington Media Advisory
contact 202.547.0854 for more information
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Ride Promoter's Profits Defended by members of AIDS Industrial Complex
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 Officials with two DC AIDS agencies defended a business deal with the
California company that owns and produces the Tangueray AIDS Rides, Dan
Pallota's Teamworks, Inc., despite reports of scandlously high administrative
costs and low returns for AIDS services in the Washington Post and US News
and World Report.  Previous rides, such the one in Florida, netted as little
as 18 cents out of every dollar for AIDS charities, causing Florida AIDS
groups to fire Pallota.  The Whitman Walker Clinic and Food & Friends are the
two beneficiary organizations of the next Tangueray AIDS Ride scheduled June
19 from North Carolina to DC.  

 AIDS activists have long demanded accountability from Pallotta Teamworks, a
for-profit corporation not subject to public disclosure of non-profit
charities.  "These riders think they're raising money for people with AIDS,
but they're financing the salaries and expenses of the AIDS Industrial
Complex." states ACT UP Washington spokesperson Steve Michael.  

 Activists' concerns were echoed in an editorial published last month in the
Fort Lauderdale Sun-Sentinel, "People who might willingly contribute to the
fight against AIDS will be less likely to do so if they suspect that most of
the money they donate is destined to wind up in a promoter's pocket."

 Food & Friends executive director Craig Shniderman claimed today in an
article in the Washington Post that proceeds from last year's ride resulted
in a 25% increase in its income, and 150,000 additional meals served.
 Activists dispute this claim, noting that AIDS programs cited are paid for
by federal Ryan White dollars with tight restrictions.  In order to receive
the revenue from last year's ride, in addition to the promoter's fees and
operating costs for the pledge office, Food & Friends had to pay $200,000 up
front for a second ride.  
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Trickle Down AIDSenomics fails to deliver--- 
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Activists say problems with the AIDS Rides finances point to larger concerns
in which funding for a bloated AIDS industry rarely trickles down to benefit
people with AIDS.  "The AIDS Ride has high overhead.  The AIDS agencies have
high overhead.  Is any of this money actually going to directly benefit
people with AIDS?" asks Michael.  
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Making make more than Governors, Senators and Mayors

 "The only major increase at Food & Friends was for Craig Shniderman's
salary." states ACT UP's Wayne Turner.  Schniderman, who was paid $101,000 in
FY1996, according to Food and Friends 990 tax forms, has reportedly received
a 35% raise--to over $136,000 a year.  Whitman Walker's executive director,
Jim Graham, earned $138,000 in FY 1996 while waiting lists grow for services
including housing, emergency drug assistance, and medical appointments.  "To
put these salaries in perspective, United States Senators earn $133,600 a
year, the Mayor of the District of Columbia earns $90,200 a year, Maryland
Governor Parris Glendening garners a salary of $120,000 and Virginia Governor
George Allen collects $110,000.." notes Michael.  US News and World Report
listed Pallotta's annual salary and bonuses of about $270,000.

Dan Pallotta                              $270,000
President Bill Clinton                    $200,000
Graham of Whitman-Walker                  $138,000*
Schniderman of Food & Friends             $137,000*
United States Senators                    $133,600
Glendening (Maryland Gov)                 $120,000
Allen (Virginia Governor)                 $110,000
Barry (Mayor of DC)                       $ 90,200

*source IRS 990 forms, financial statements and board meeting minutes

 During last year's Philadelphia to DC AIDS Ride, Pallotta announced to
participants that 60% of the proceeds would be going to the beneficiary
organizations.  Agencies in Philadelphia wound up receiving only 28% of the
net generated.  An investigation by the Pennsylvania Attorney General's
office resulted in $110,000 fine against Pallota.  States Mary Beth O'Hara
Osborne of the Attorney General's office, "Riders felt deceived."

 ACT UP Washington continues to demand full disclosure from Pallota and the
recipient organizations on the allocation of funds generated from AIDS Ride,
and have been pressuring Tangueray Gin, the chief corporate sponsor.  "There
are too many unanswered questions.  The Tangueray AIDS Ride is turning into
Pallotta-gate." adds Michael