PHOTO: From left, Markus Schuh, Andrea Schmidt, Achim Heukemes and Greenwich Resident John Michelott
THE FOR PROFIT GREENWICH 9/11 FLAG
A Greenwich man who has told people that he was eager to give after the 9/11 terrorist attacks poured set up a charities to serve the victims, their families and their memories.
But a decade later, records show that this Greenwich charity has failed 9/11 victims and their families miserably.
The Flag of Honor Fund, a Greenwich charity, raised nearly $140,000 to promote a memorial flag honoring 9/11 victims. The flag, which contains the name of every person killed on Sept. 11, 2001, is on sale today at Wal-Mart and other retail stores.
But only a tiny fraction of the money from those sales goes to 9/11 charities, with most going to retail stores, the flag maker and a for-profit business — run by the Greenwich man who created the flag charity.
This Greenwich 9/11 charity fell short of it's promises and did more to help it's founder than those affected by the terrorist attacks.
At first glance, the Flag of Honor/Flag of Heroes Project looks like any other charity doing philanthropy in the name of 9/11. But people who have bought one of its flags might be surprised to learn that nearly all the proceeds have gone to the charity founder's for-profit flag company, not 9/11 victims.
IRS rules generally prohibit the resources of a nonprofit group from being used to promote a for-profit product.
John Michelotti of Greenwich, Conn., the charity's founder, has publicly said one of his goals was to give a framed copy of his flag, which bears the names of all the dead emblazoned on the Stars and Stripes to every family that lost someone in the attacks.
He also designed a "Flag of Heroes" with only the names of fallen firefighters and law enforcement personnel.
Documents filed with the state of Connecticut explain that part of the Greenwich fund's mission is to create "a national people's memorial" by urging corporations "to hang the Flag of Honor artwork prominently in all of their business locations."
In some IRS filings, the charity said its purpose was to sell the memorial flag.
The project's website lists 10 nonprofit groups as beneficiaries of the flag sales, including the Boy Scouts, a food bank in Oregon and a Manhattan church that narrowly escaped being destroyed in the attacks.
The truth is that Mr. Michelotti's for-profit business, BIE LLC, has donated no more than $15,000 to 9/11 charities.
Now Here Is How The Greedy 9/11 Scheme Worked.....
Most of the charities listed as beneficiaries were actually BIE customers that purchased flags to resell during their own fundraising efforts.
For example, Mr. Michelotti imported cheap flags from China. The Exchange Group chapter in Salem, Ore., bought about 4,000 flags from his for-profit company to use in a patriotic display for about $7 each, then sold them for $25. About $75,000 was raised for several causes, including the Oregon National Guard Emergency Relief Fund, but none of the money came out of Mr. Michelotti's cut.
Ka Ching !!!! Ka Ching !!! Ka Ching !!!!
Mr. Michelotti's charity collected $139,332 in donations and other revenue from 2003 to 2009, but it only gave away framed copies of the flag to the families of between 200 and 350 victims of the terror attacks. Framed copies Mr. Michelotti's charity basically bought from Mr. Michelotti's Business.
Tax returns filed by the group don't list any donations to 9/11 victims or the groups that serve them.
BIG BUCKS ARE BEING MADE OFF THE 9/11 VICTIMS AND THEIR FAMLIES
Today show host Hoda Kotb promoted the flag on national television in 2009, she described the project as "a contribution fund to help those that were affected."
Several 9/11 organizations have embraced his product.
The flag is sold at the National Sept. 11 Memorial and Museum, and online by Voices of Sept. 11, a leading victims' advocacy group.
Annin Flag Makers, the nation's largest and oldest flag company, also recently signed on to the project. The company said it shipped 170,000 of the flags this summer to stores nationwide, including Walmart.
Under Michelotti's deal with Annin, some money from flag sales will go to charities regularly for the first time — but it won't be much. Ten percent of the wholesale revenue will be split among the Wounded Warriors Project, the National Sept. 11 Memorial and Museum, Voices of 9/11 — and Michelotti's Flag of Honor charity, according to Annin's marketing material.
Mr.Michelotti and Annin declined to disclose how much of a licensing fee he will receive or how much retailers are paying for the flag.
But if it is close to the $7 wholesale price Michelotti charged previously, roughly 70 cents of a $20 retail purchase would go to charity.
The remaining profit would go to the flag maker, the retailer, and Michelotti's for-profit company.
The Flag of Honor Fund has shamelessly crossed the firewall between a charity and a for-profit company just to benefit one Greenwich resident.
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Please send your comments, news tips and press releases to GreenwichRoundup@gmail.com
This Greenwich 9/11 charity fell short of it's promises and did more to help it's founder than those affected by the terrorist attacks.
At first glance, the Flag of Honor/Flag of Heroes Project looks like any other charity doing philanthropy in the name of 9/11. But people who have bought one of its flags might be surprised to learn that nearly all the proceeds have gone to the charity founder's for-profit flag company, not 9/11 victims.
IRS rules generally prohibit the resources of a nonprofit group from being used to promote a for-profit product.
John Michelotti of Greenwich, Conn., the charity's founder, has publicly said one of his goals was to give a framed copy of his flag, which bears the names of all the dead emblazoned on the Stars and Stripes to every family that lost someone in the attacks.
He also designed a "Flag of Heroes" with only the names of fallen firefighters and law enforcement personnel.
Documents filed with the state of Connecticut explain that part of the Greenwich fund's mission is to create "a national people's memorial" by urging corporations "to hang the Flag of Honor artwork prominently in all of their business locations."
In some IRS filings, the charity said its purpose was to sell the memorial flag.
The project's website lists 10 nonprofit groups as beneficiaries of the flag sales, including the Boy Scouts, a food bank in Oregon and a Manhattan church that narrowly escaped being destroyed in the attacks.
The truth is that Mr. Michelotti's for-profit business, BIE LLC, has donated no more than $15,000 to 9/11 charities.
Now Here Is How The Greedy 9/11 Scheme Worked.....
Most of the charities listed as beneficiaries were actually BIE customers that purchased flags to resell during their own fundraising efforts.
For example, Mr. Michelotti imported cheap flags from China. The Exchange Group chapter in Salem, Ore., bought about 4,000 flags from his for-profit company to use in a patriotic display for about $7 each, then sold them for $25. About $75,000 was raised for several causes, including the Oregon National Guard Emergency Relief Fund, but none of the money came out of Mr. Michelotti's cut.
Ka Ching !!!! Ka Ching !!! Ka Ching !!!!
Mr. Michelotti's charity collected $139,332 in donations and other revenue from 2003 to 2009, but it only gave away framed copies of the flag to the families of between 200 and 350 victims of the terror attacks. Framed copies Mr. Michelotti's charity basically bought from Mr. Michelotti's Business.
Tax returns filed by the group don't list any donations to 9/11 victims or the groups that serve them.
BIG BUCKS ARE BEING MADE OFF THE 9/11 VICTIMS AND THEIR FAMLIES
Today show host Hoda Kotb promoted the flag on national television in 2009, she described the project as "a contribution fund to help those that were affected."
Several 9/11 organizations have embraced his product.
The flag is sold at the National Sept. 11 Memorial and Museum, and online by Voices of Sept. 11, a leading victims' advocacy group.
Annin Flag Makers, the nation's largest and oldest flag company, also recently signed on to the project. The company said it shipped 170,000 of the flags this summer to stores nationwide, including Walmart.
Under Michelotti's deal with Annin, some money from flag sales will go to charities regularly for the first time — but it won't be much. Ten percent of the wholesale revenue will be split among the Wounded Warriors Project, the National Sept. 11 Memorial and Museum, Voices of 9/11 — and Michelotti's Flag of Honor charity, according to Annin's marketing material.
Mr.Michelotti and Annin declined to disclose how much of a licensing fee he will receive or how much retailers are paying for the flag.
But if it is close to the $7 wholesale price Michelotti charged previously, roughly 70 cents of a $20 retail purchase would go to charity.
The remaining profit would go to the flag maker, the retailer, and Michelotti's for-profit company.
The Flag of Honor Fund has shamelessly crossed the firewall between a charity and a for-profit company just to benefit one Greenwich resident.
AND GUESS WHO IS JOHN MICHELTTI BIGGEST PROMOTER
YES MICHELOTTI IS IN THE GREENWICH TIME INSIDERS CLICK
THIS GUY IS ALWAYS IN THE GREENWICH TIME
THIS GUY IS ALWAYS IN THE GREENWICH TIME
Greenwich man's 9/11 flags planned for park on 10th anniversary ...
www.greenwichtime.com/.../Greenwich-man-s-9-11-flags-planned-f... - CachedJun 28, 2011 – From left, Markus Schuh, Andrea Schmidt, Achim Heukemes and John Michelotti hold a flag commemorating the Sept. 11, 2001, attacks at the ...NY park to get 3000 flags for 9/11 anniversary - GreenwichTime
www.greenwichtime.com/.../NY-park-to-get-3-000-flags-for-9-11-Jun 28, 2011 – John Michelotti, a former engineer from Greenwich, Conn., came up with the idea. He says NYC Memorial Field will be open Sept. 8-12. ...... - CachedExtreme runner's latest feat will honor 9-11 victims - GreenwichTime
www.greenwichtime.com/.../Extreme-runner-s-latest-feat-will-honor... - CachedMay 12, 2011 – From left, Markus Schuh, Andrea Schmidt, Achim Heukemes and John Michelotti hold a flag commemorating the Sept. 11 attacks at the upper ...Norma Bartol: Glenville Fire House celebrates ribbon cutting ...
www.greenwichtime.com/.../Norma-Bartol-Glenville-Fire-House-cel... - CachedJun 23, 2011 – ... with board members Jeanette Irwin, Ingrid McMenamin, Sean Murphy, Joan Caldwell, Karen Dixon, Richard Hogan and John Michelotti. ...greenwichtime.com : Extreme runner's latest feat will honor 9-11 ...
m.greenwichtime.com/gtime/db_34091/contentdetail.htm;...May 12, 2011 – The flags are the creation of Greenwich resident John Michelotti, who has distributed more than 300000 of them over the past decade through ...Deer population still an issue in Greenwich despite slight ...
www.greenwichtime.com/.../Deer-population-still-an-issue-in-Green... - CachedSep 26, 2009 – John Michelotti, a founder of the GSLA, said he felt his group's efforts to decrease the deer population had been effective. ...
ARE YOU IN THE GREENWICH TIME CLICK?
THE GREENWICH TIME EASILY IGNORES GREENWICH TAXPAYERS, GREENWICH HIGH SCHOOL PARENTS AND HOMEOWNERS WORRIED ABOUT PCBS.
YET THE GREENWICH TIME IS ALWAYS AVAILABLE TO QUOTE AND PROMOTE THEIR LITTLE CLICK OF TOWN INSIDERS.
THE GREENWICH TIME EASILY IGNORES GREENWICH TAXPAYERS, GREENWICH HIGH SCHOOL PARENTS AND HOMEOWNERS WORRIED ABOUT PCBS.
YET THE GREENWICH TIME IS ALWAYS AVAILABLE TO QUOTE AND PROMOTE THEIR LITTLE CLICK OF TOWN INSIDERS.
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Please send your comments, news tips and press releases to GreenwichRoundup@gmail.com
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