Autism Awareness United has stepped up its profile since its founding 19 months ago, being named in a Washington lawmaker's resolution to celebrate April as Autism Awareness Month. It has advertised for paid fundraising reps, opened chapters in the Spokane and Tacoma areas and, starting last fall, expanded into Oregon.
"We've realized the people of Oregon, like the people of Washington, are very generous," says its president, Joe Searles.
Autism Awareness United has also triggered complaints. One has sparked an Oregon Department of Justice investigation, and a rival nonprofit filed a complaint with the attorney general in Washington state, where the charity is also registered.
The Oregon DOJ has subpoenaed Autism Awareness United bank statements and fundraising materials to investigate whether the charity violated Oregon laws on nonprofits and business practices. The DOJ's investigation was triggered by a tip that Autism Awareness United was promoting a raffle, which if involving $10,000 or more is allowed only for federal tax-exempt charities.
Autism Awareness United is not exempt. Donations to it are not tax deductible, which requires federal Internal Revenue Service approval. A charity that's not tax-exempt is unusual, said Ross Laybourn, former head of the state's charitable activities office. Potential donors should "think twice and maybe ask more questions" of non-tax-exempt charities, he says.
Legal issues
In fact, few questions are asked when a charity forms in Oregon. All that's needed is a three-person board to file forms with the DOJ and the Department of Corporations. Oregon's DOJ, which oversees 16,000 registered charities with an 18-person staff, doesn't check for criminal records, though Washington state does prohibit charity officials with criminal fundraising convictions. So Searles' criminal record wasn't a barrier to opening a charity. He pleaded guilty in 1985 to illegal gambling for running a sports betting operation in a Washington state car on work time as a state mail courier. He was sentenced to community service.
Searles' crusade for autism awareness started after a rocky end to his decade-long real estate career in the Olympia area.
He left real estate in 2008 after several lawsuits were filed accusing his businesses of fraud. Washington state also investigated and filed administrative fraud charges, leading Searles to agree to a five-year suspension of his mortgage loan originator license. "These are all fairly serious behaviors," said Deb Bortner, Washington's consumer services director.
Searles declared personal bankruptcy in 2009 and set up a short-lived fundraising business that left unpaid employees when it closed, court documents show.
In April 2010, Searles and his wife started fundraising for the Autism Society of Washington under a 12-month contract that let them keep 80 percent of what they collected.
The Autism Society, saying it received only two months worth of checks, about $14,000, sent the couple a letter Aug. 27, 2010, to "cease and desist" using its logo to raise funds, and canceled the contract.
Four days later, Searles filed papers with Washington state for a new nonprofit. In May 2011, the Autism Society of Washington complained to the state attorney general that Searles' new nonprofit may have continued to collect money under its name and logo.
Searles said he turned over all money the Autism Society was due and said, "We're totally legitimate."
Growing presence
In registering with the state, Searles stated the purpose of his charity, initially called Autism Awareness Washington: "To spread awareness about autism spectrum disorders, and to raise funds to assist low-income families in gaining access to available interventions, therapies and resources."
To that end, Searles hired two past colleagues, mortgage brokers whose licenses were suspended in the fraud investigation of Searles' real estate business.
Searles said the since-renamed Autism Awareness United has participated in numerous activities, including a Capitol Lake Walk to raise funds in Olympia, toys for a Spokane group, helping an unnamed autistic child who needed surgery, and attending Autism Night resources fair at a Mariners game. Searles declined to release financial details to The Oregonian, but his attorney, James Jameson, emailed an autism advocate last November about the charity's budget goals. Over time, he wrote, "disbursement levels should reach 30 to 35 percent."
That's lower than Better Business Bureau guidelines for charities, which call for 65 percent of budget spent on programs. The national Autism Society spends 78 percent of budget on programs, the Oregon chapter spends 68 percent, and the Washington chapter 38 percent. All also are tax-exempt.
Searles' group is one of many formed in recent years to highlight autism as its diagnosis has become more prevalent. And people are motivated to help.
Erin Pipes, manager of Ace Hardware in Portland's Woodstock neighborhood, had an autistic acquaintance in mind when he let an Autism Awareness United fundraiser set up a table outside his store in January.
"I don't recall asking too many questions," he said. "It seemed to be a good cause."
--Nick Budnick
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