Brady Barrows

P.O. Box 999

Pahala, Hawaii 96777

December 27, 2005

 

Director, Exempt Organizations

Internal Revenue Service

Department of Treasury

P.O. Box 2508

Cincinnati, Ohio 45201

 

Dear Sir:

 

It is come to my attention that a non profit organization has some unusual items listed on Form 990 which I have been examining for some years now.  The non profit organization is:

 

National Rosacea Society

800 S. Northwest Highway #200

Barrinton, IL 60010

 

The list of officers and directors have for years received no compensation, contributions,  expense account or other reimbursement.  However this organization has received for the past seven years, from 1998 through 2004, $5,569,108.00 in donations of which $3,368,592.00 was spent on one private contractor, Glendale Communications Group, Inc., which is owned by Samuel Huff, Director of the National Rosacea Society. This means that over 60% of all donations are spent on one private contractor. 

 

Since Samuel Huff is the director of the NRS and on the board of directors of this non profit and also owns Glendale Communications Group, Inc., and receives no listed compensation as a director, while at the same time directs that 60% of the funding of the NRS goes to his own private corporation, there may be a conflict of interest or possibly some violation of the IRS exempt tax code. 

 

I would urge you to investigate an audit of all the expenses and receipts for this non profit organization, as well as the activities of Glendale Communicaitons Group, Inc., to see if everything going on with these two entities are legal. 

 

Sincerely,

 

 

Brady Barrows