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That’s not how it works! Tom Brady’s non-profit company pays money to his for profit company

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Buccaneers quarterback Tom Brady has allegedly been paying his own for-profit company from his non-profit company. Brady’s TB12 Inc, a sports wellness company that sells supplements and “sports therapy” sessions, has reportedly received more than $1.6 million from TB12 Foundation, Brady’s charitable organization founded to help athletes to avoid injuries, improve longevity, and stay healthy, according to an exclusive report from the Daily Beast.

According to the Daily Beast:

Brady, who earned $350 million during his two decades with the New England Patriots, has given a small fraction of his riches to his own charity, with little over $200,000 in donations, according to the TB12 Foundation’s tax filings.

The quarterback’s for-profit company TB12, Inc. is the sole provider of ‘sports therapy’ sessions for the TB12 Foundation. Since it launched in 2015, the foundation has paid Brady’s firm a total of more than $1.6 million for its services, and it’s the only company listed as an ‘independent contractor’ for such treatments.

The Daily Beast drummed up tax records and found “the TB12 Foundation paid $113,786 to TB12 Inc in 2016. For the next two years, the foundation gave more than $600,000 to Brady’s for-profit company. And in 2019, the foundation paid out another $424,921 to TB12 Inc.”

Laurie Styron, executive director of independent nonprofit monitor CharityWatch, says the situation is quite fishy. “I can say that I haven’t come across this type of arrangement too often in my 19 years of nonprofit financial analysis in a watchdog role,” Styron told the Daily Beast.

“A charity’s board members have a fiduciary duty to act in the best interest of the charity at all times,” Styron continued.

“Doing so becomes more complicated when there are competing interests between nonprofit and for-profit legal entities, particularly when the two organizations share key staff who have to balance their fiduciary duties between the two. It has the potential to get tricky if there aren’t adequate safeguards in place.”

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