Homeless man says couple who raised $400k for him is mishandling the money

[testcase]

If he gets more than a thousand dollars or so at once, he'll OD and die within a week. As little as a couple of hundred could easily lead to his demise.

[Bill in NC]

Hire a lawyer to setup a spendthrift trust with the trust department of a local bank, etc. to run it.

It can be arranged so that the beneficiary literally has no access to cash.

[pRICE cUBE]

I understand some of the causes of homelessness and the man may be on a path of self destruction. The issue here is the money was donated to help him get into a situation where he could be helped. It appears the couple remained overseers for the money without any solid plan or accountability. They were in over their heads. This is why professional even have a difficult time with homeless and addicts. If even professionals can't guarantee results, how can this untrained couple who suddenly oversee $400,000? If friendship were enough to sure homelessness and addiction, these problems would not exist.

In another story I read, the couple has been on multiple vacations, bought a new BMW, and used some of the funds as a loan they claim they paid back. The looks of this, even if properly accounted for, don't look good. They never should have borrowed the funds. Maybe they tried to help him but without a solid paper trail or true fiduciary responsibilities, the situation doesn't look good for all involved. I don't have a feeling this will end well. They should have set up some kind of trust for him.

[M A V I C]

Sad.

This is why the "housing first" strategy doesn't work in many places. It's also why money isn't the answer to homelessness.

He needs a plan provided to him, starting with getting off drugs.

[rjmacs]

M A V I C wrote:
Sad.

This is why the "housing first" strategy doesn't work in many places. It's also why money isn't the answer to homelessness.

He needs a plan provided to him, starting with getting off drugs.

Thanks - do you have a lot of experience helping folks without homes get back on their feet?

I'm trying to figure out what qualifies the fundraisers in this story to offer an opinion on what the beneficiary 'needs,' other than that they are white and have more money than he does.

[M A V I C]

rjmacs wrote:
[quote=M A V I C]
Sad.

This is why the "housing first" strategy doesn't work in many places. It's also why money isn't the answer to homelessness.

He needs a plan provided to him, starting with getting off drugs.

Thanks - do you have a lot of experience helping folks without homes get back on their feet?

I'm trying to figure out what qualifies the fundraisers in this story to offer an opinion on what the beneficiary 'needs,' other than that they are white and have more money than he does.
I've worked with several organizations that do and talked with a lot of organizations that are funded to do that but aren't producing results.

[RAMd®d]

Wow. That is some white bullhockey right there.

other than that they are white

No good deed goes unpunished.


What is it with your making this about race? It's ok to be a racist because the couple is white?

I do agree with pRICE, in that the couple should have never used one cent of those funds for personal use. And while the money was raised for him, there is no doubt that without structure and support, that money would be gone in a heartbeat.

I would say that the money is being mishandled by not legally establishing some trust fund. The down side is that it will eat up the money. There's no getting around that.

John boy may never be capable of handling that money. Handing $400,000 over to anybody itself is a matter of trust, a leap of faith, and no guarantee any organization won't help themselves to 'administrative costs', justified or otherwise. And it's no guarantee they will put Johnny's sobriety before all else. Without that, he has no chance to turn his life around. Staying sober isn't for the weak.

But handing over the money will do one good thing— it will get idiots off the backs of the couple. It should have been done right away before fools had a chance to vilify the couple for trying to help out.

Just as there was a popular outcry from idiots for Amy Winehouse's dad to leave her the hell alone, this couple is feeling similar slings and arrows. IF it turns out there's evidence that they promoted a fraud to get themselves some cash, then I'll retract my benefit of doubt.

They could just put the money in a bank, give him the account and walk away. And expose themselves to likely some of the same idiots, and donators, who would then say 'You may as well have given him a loaded gun!'

No good deed will go unpunished. Someone will always find a way.

[SteveG]

If you raise 400K for me I promise to use it wisely. If necessary, I will even add meth to my buffet of addictions.

[JPK]

Give an addict a $hit ton of money? Brilliant idea.

JPK

[JPK]

I remember a guy who used to ride the "L" train in chicago at night. He was very disfigured due to burns and would beg for money. He seemed clearly in need and was one of the few panhandlers I gave money to.

Years later the Chicago Reader (weekly tabloid) did a story about the guy. Turns out the burns were from a crack pipe explosion and all the money he earned fed his crack habit until he died from a drug overdose.

His Mom was interviewed and said all the people who thought they were doing a good thing were actually enabling him more and led to his eventual death.

It was kind of a milestone moment for me.

Now I only give to organizations - not individuals.

JPK