Business

Montana AG opens inquiry into ‘Three Cups’ charity

admin Contributor
Font Size:

HELENA, Mont. (AP) — Montana’s attorney general is scrutinizing the charity run by “Three Cups of Tea” co-author Greg Mortenson after reports questioned whether Mortenson benefited from money donated to build schools in Pakistan and Afghanistan.

Attorney General Steve Bullock’s announcement Tuesday follows investigations by “60 Minutes” and author Jon Krakauer into inaccuracies in the book and spending by the Bozeman, Mont.-based Central Asia Institute.

Bullock oversees nonprofit corporations operating in the state. He has been in contact with attorneys for the agency, and they have pledged their full cooperation, he said in a statement to The Associated Press.

“While looking into this issue, my office will not jump to any conclusions — but we have a responsibility to make sure charitable assets are used for their intended purposes,” he said in the statement.

“Three Cups of Tea” was released in 2006 and sold more than 3 million copies. That notoriety helped Mortenson grow the Central Asia Institute by generating more than $50 million in donations, Krakauer said.

According to the charity’s website, it has “successfully established over 170 schools” and helped educate over 68,000 students, with an emphasis on girls’ education.

Krakauer, author of “Into the Wild,” cast doubt on Mortenson’s story of being lost in 1993 while mountain climbing in rural Pakistan and stumbling upon the village of Korphe, where the residents helped him recuperate and he promised to build a school. Krakauer called it a “myth.”

“Mortenson has lied about the noble deeds he has done, the risks he has taken, the people he has met, the number of schools he has built,” Krakauer wrote in the recently published “Three Cups of Deceit.”

Krakauer reported that millions of dollars donated to the Central Asia Institute were spent on chartered jets, equipment and advertising for Mortenson’s books, even though the charity doesn’t receive any royalties for them. One former board member told Krakauer that Mortenson “regards CAI as his personal ATM.”

Mortenson and officials with the charity did not return calls and emails for comment from the AP. Charity officials told the Bozeman Daily Chronicle on Tuesday that Mortenson was being treated at a Bozeman hospital for a heart ailment.

Anne Beyersdorfer, who was named temporary director of the Central Asia Institute, told the newspaper that doctors will repair a hole in Mortenson’s aortic ventricular wall next week. She says he has low oxygen levels in his blood and has canceled appearances for two weeks.

Beyersdorfer, who described herself as a family friend, said Mortenson plans to set the record straight.

Bullock spokesman Kevin O’Brien said the attorney general’s inquiry has not reached the level of a full-scale investigation and it was not immediately clear exactly what Bullock was seeking.

“Those are the things that are going to have to come out in the coming days,” O’Brien said.

Tax information filed with the Internal Revenue Service for the fiscal year ending Sept. 30, 2009, the most recent available, put the charity’s expenses at $9.7 million. Of that, $3.9 million — about 41 percent — was spent on building materials, teacher salaries, scholarships and other expenses related to school building.

A larger amount, $4.6 million, was spent on what was described in the tax documents as “domestic outreach and education” and “lectures and guest appearances across the United States.” Mortenson, who is the Central Asia Institute’s executive director and a board member, received $180,747 in compensation that year.

More than $1.5 million of the charity’s expenses went to advertising and marketing Mortenson’s books.

In a recent interview with Outside magazine, Mortenson said he had done nothing wrong and that much of that money goes toward educating people in the U.S. about the need for the schools.

“Our education mission includes both educating young people in Pakistan and Afghanistan — especially girls — and educating the American public about how promoting education in these countries contributes to peace,” he told the magazine.

But, Mortenson added, the Central Asia Institute’s law firm produced an internal memo that he might be found in violation of IRS regulations regarding excess benefits if the Central Asia Institute were audited.

Mortenson hired an outside law firm in January to conduct an independent analysis of the charity. The firm concluded he had done nothing wrong, but recommended there be specific changes to separate Mortenson in some respects from the charity, he said.

Mortenson said he has been paying for all of his own travel since January, and the charter flights allowed him to pack more speaking engagements in.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel