Acts of Kindness Inc. sale not A-OK?
Published 12:00 am Thursday, October 3, 2013
Director to president: Explain use of $110K
Was money misappropriated following the 2012 sale of the former Coca-Cola building by the local non-profit Acts of Kindness Inc.? That’s what one board of directors member wants to know.
Wednesday, The Star-News obtained a copy of a letter to AOK Inc. President Dr. Steven Dohoney from local attorney and AOK Inc. director Allen Woodard, questioning the $110,000 profit from the building’s sale in August of 2012.
The letter was written on Sept. 9, and Woodard said Dohoney has not responded.
Woodard said he communicated multiple times previously with Dohoney about the sale.
“This matter has bothered 4me a great deal because there is no doubt in my mind the Coca-Cola Bottling Company deeded this property to a charity and for a charitable purpose,” Woodard wrote. “Instead, it appears this charitable gift has been misappropriated. However, I have no proof of this belief other than the outward appearances derived from the Covington County Probate records.”
Woodard said that probate records show Dohoney and his wife purchased a house in the Ashley Pointe subdivision on Aug. 18, 2012, for $187,900. He said AOK sold the Coca-Cola plant on Aug. 24, 2012, for $110,000.
“The records show no mortgage was filed with the Ashley Pointe sale, which suggests (Dohoney) paid cash for the house,” Woodard wrote.
Woodard said previous letters prior to the September asking for documentation showing that no AOK money was used in the home sale have gone unanswered.
“I wrote the previous letters to you with the hope you would show some documents or other paperwork reflecting no Acts of Kindness money went into this purchase, but I have been left with the impression you took the $110,000 as back pay for your efforts while running Acts of Kindness,” he wrote. “If this impression is wrong, I apologize in advance.”
The non-profit’s 2008 Form 990 tax return shows the charity paid Dohoney a $20,000 salary for acting as its president. The same form for 2009 showed a salary of $20,340 and the form for 2010 – the last tax return on file – showed he was paid a $6,000 salary.
“Applying these numbers and assuming them in a manner most advantageous to you, – and ignoring the fact Acts of Kindness was basically defunct from 2010 to 2012 – we could argue you were entitled to a salary of $20,340 for 2011 and 2012, a total of $40,680,” the letter stated. “The question then becomes: what represents the other $69,320?”
Woodard has asked Dohoney to provide complete copies of AOK bank accounts, receipts and any other records showing, “you are the proper recipient of these funds and my concerns are entirely misplaced or you will show me the $110,000 is ready and available to be spent on a charitable purpose.
“The reason I am hopeful is because I do not want to believe these funds have been used for any improper purpose, (and) I cannot believe you would ever do anything wrongful in this regard, and there must be some logical explanation,” he wrote.
Probate records show the property was purchased from AOK by Edwin McIntyre Jr. and Tim Day on Aug. 24, 2012, for $110,000. The two men in turn, sold the property to the City of Andalusia on March 8, 2013, for $145,000.
The AOK Inc. articles of incorporation state that if the charity ceases to exist, its remaining assets shall be distributed only to Open Heaven Ministries Inc., Dohoney’s church; however, at the time of the sale, it did not appear that AOK had been disbanded.
Dohoney did not return voice mail messages Wednesday specifically asking for information about the sale.