Charity for homeless takes as it gives

The organization, which has been recognized nationally for its employment services, relies mostly on donations and small government grants. It owns or rents 17 homes and apartments, which are shared by many of its clients. And twice each week, people can get a free meal in an otherwise empty lot on East 22nd Street near South Columbus Road.

But an Arizona Daily Star investigation found that the Giving Tree served expired and potentially unsafe food to needy kids, that it charges clients hundreds of dollars a month to live in crowded rental homes, and that at least twice it made a public display of giving kids gifts at holiday parties, only to take them back later. Many of the Giving Tree's actions violate city and state regulations, or are contrary to widely accepted standards for charities, the newspaper found.

Over three months, the Star reviewed public records from six government agencies that have some authority over the Giving Tree and interviewed more than 60 people, most of them former clients, employees and volunteers, or government officials. Among the paper's findings:

* The nonprofit Giving Tree says it serves up to 8,800 clients annually and brings in as much as $1.4 million a year. Its 2007 federal finance report, the last year available, says it accomplishes that while spending nothing on management, $12,442 on salaries and $5,807 on fundraising - something that experts in running nonprofit agencies say is all but impossible for an organization of its size.

* The organization lost federal funding for its summer meals program last year after the state Department of Education found 19 violations, including reporting false information, failing health inspections and serving expired and unsanitary food to children.

* Four former clients say they were encouraged to submit false information to the state to get more public assistance than they deserved, or they believe false information was submitted on their behalf. They say those extra benefits went to the Giving Tree.

* Former clients and volunteers say the Giving Tree takes in children without a parent or guardian at its Grace Home, even though it has twice been denied a required state license to operate a children's shelter. One denial was because of complaints, substantiated by the Department of Economic Security, of "child abuse and neglect" involving Wright; the other came after state inspectors said the home was unsanitary and unsafe.

* Former clients and volunteers said Wright appeals for donated items, then holds onto them. Former volunteers said they saw stockpiled food spoil before it could be used, homeless mothers refused diapers and children forced to give back toys they received as gifts.

* The nonprofit charges many clients $200 to $500 per month each to share a three-bedroom "transitional" home with up to 28 other people, and it collected up to $8.50 a night for a cot or space to put down a mat in its now-closed shelter. Such charges are legal, but other local shelters offer such services at no cost, and advocates for the homeless say shelter charges make it difficult for someone to get out of poverty.

* City officials believe that most, if not all, of the Giving Tree's 17 homes and apartments violate residential zoning regulations because they serve as group shelters.

Wright and her husband, Carlo Giovingo, declined repeated interview requests and instead asked for written questions, which the Star provided on Sept. 18. Wright and Giovingo did not answer the questions, which are published online.

Last week, the Star sent the Giving Tree a certified letter detailing the findings of the paper's investigation and asking again for comment. It was delivered via certified mail at 8:30 a.m. Wednesday, but the Giving Tree forwarded the letter to another location. The Star then hired a courier service to deliver the letter, which was accepted and signed for at 1:15 p.m. Thursday under the name E. Parker.

On Friday, Tucson attorney Sean E. Brearcliffe faxed a letter to the Star saying the Giving Tree would respond to the paper's "false allegations" at an "appropriate time."

"Your sources are giving you bad and clearly incomplete information," the letter said.

Conflicting reputations

Wright has two reputations: a tireless champion for the poor and someone who ignores rules she doesn't like.

Pastor Roy Tullgren, executive director of Tucson's Gospel Rescue Mission, said his experiences with Wright over the years have been positive. He said she works with people whom traditional social services have failed, or at least overlooked.

"Her heart is so big. She cares more about helping people, even if it means she has to skirt the law," he said. "Whether it's healthy or not, I don't know. She's doing the best she can with what she has."

Board Secretary Mollie Moody said that in six years with the Giving Tree, she has "never heard or seen any misconduct."

"There is nothing, I mean nothing, better than taking care of the homeless and needy children and families in our community," Moody wrote in an e-mail. "The Giving Tree does this with a very full heart and the love of Jesus."

The Giving Tree has "done more for the homeless than anyone in Tucson," said Dick Mentzer, who was recently board president. "If you had 20 people like Libby Wright, you would have a lot less problems with the homeless."

Donna Pratt has overseen the Giving Tree's job program since it started in 2006, and with funding from the U.S. Department of Labor, she said, she has placed more than 600 people in jobs. "The Giving Tree offers people hope," she said, and the chance to "get back on track."

In 2008, then-President George W. Bush praised the Giving Tree in a White House report, noting that from 2006 to 2007, it enrolled 75 participants and placed 76 percent of them in jobs. This year the Giving Tree received $40,000 from the Labor Department to run its job program.

The Giving Tree touts the help it gives to the homeless, but board members did not produce satisfied clients, despite being asked to on Oct. 22 and again on Oct. 26.

Shifting opinions

Tom Hill and Don Blascak, longtime Tucson advocates for the homeless, were initially avid supporters of Wright.

For nearly four years, Hill and his family donated money and time, and provided food for the free meal program, as part of his WORKship Methodist Church.

Hill, whose family founded Tucson's Gaslight Theatre, said he was surprised to find Wright soliciting and accepting donations for food that WORKship provided for free. Hill also said he saw Wright hoard diapers and toys. When he asked about it, Hill said, Wright would only say, "We need those for later."

After dissociating himself from the Giving Tree, he learned that Wright not only wasn't licensed to operate a children's shelter at the Grace Home, but women at his downtown meals program told him they had to pay to stay there.

"We had brought in groups to do work at the Grace Home - cleaning, planting trees and fixing stuff - all on the premise that what the Grace Home was doing was providing shelter to women and children in crisis," he said. "Now that we've heard that it's actually being run as a hotel is mind-boggling."

Paul Bennett is a former client who managed the now-closed shelter at the Giving Tree's church, Compassion Hope Center. (The city cited the Giving Tree for running an "illegal and unsafe" shelter and in August ordered it to be closed at night).

Like Hill and Blascak, Bennett was devoted to the organization at first but grew uncomfortable, especially with charging people to stay at the shelter. At that time, in 2007, it cost $6.50 to sleep on a mat inside and $1 extra for a shower, he said. If people couldn't pay, he said, they worked - for the Giving Tree.

Bennett said that as shelter manager, he had to screen clients to learn what government aid they received. Those who got Social Security or cash often would move to a Giving Tree home where they would pay rent, usually to share quarters with many others.

Homeless advocates said asking clients to work for and pay rent to a charity in exchange for help can be a barrier to independence. Monthly payments eat into already-scant incomes, making it hard to save a security deposit and rent for their own place, advocates said. Also, they said, having to work for the non-profit organization makes it hard to find time to get a job - especially for those without cars.

Cathleen Hall is one of 10 former clients who told the Star about using government aid to stay in crowded homes. Hall, 54, said she paid up to $400 a month for a bed in the Giving Tree's "Our Home." At one point, she said, 27 other people lived in the three-bedroom, two-bathroom home.

With former clients reporting rents of $200 to $500 each, and up to 28 people assigned to three-bedroom homes, that could total thousands of dollars a month per home. Similar housing is readily available in Tucson for $1,000 a month or less for those who can afford the rent and security deposit.

Ignoring the rules

Blascak, who volunteers for the American Red Cross and the Interfaith Coalition for the Homeless, said he was bothered by comments he heard that the Giving Tree exaggerated how many families it helped in an effort to get more Christmas donations. When he asked Giving Tree staffers about it, they said that was true. "They not only did not deny it but insisted that 'all agencies do that,' " Blascak said. "I assured them that was not the case."

"Working outside the system, and often outside of ethical considerations and regulation and the law, neither promotes the agency (nor) helps the client," Blascak said.

Hill said he believes Wright started out trying to help people but got off-track. He said he became disillusioned by Wright's disdain for government regulations - an attitude he said reflects badly on all social-service groups.

Although Wright would not comment for this story, in an August interview with the Star, she raised the Giving Tree's willingness to work outside rules as one of its selling points.

Discussing a new home the organization was opening in an area that is not zoned for a shelter, she said she didn't tell the city about building improvements that were under way or take out building permits to avoid interference. She said she didn't want city officials asking her "who is living there, are they related, unrelated, male or female."

"We don't want to have that kind of thing go on," she said.

Contact reporter Patty Machelor at 235-0308 or pmachelor@azstarnet.com. Contact reporter Rob O'Dell at 573-4346 or rodell@azstarnet.com.