Yesterday, I noted that AARP’s main ‘business’ is renting its name to insurance companies selling policies to senior citizens. It’s a robust business that has grown rapidly over the last few years. In 2002, AARP collected around $240 million renting its name. By 2009, that figure had almost tripled to $657 million a year. (Nice work if you can get it.)
At least, AARP, Inc., who sells the naming rights could use this windfall to further their important charitable work, right?
Um, not so much.
As the above chart, from yesterday’s House Ways and Means Committee report, shows, while AARP Inc.’s royalty income from insurance companies was exploding, the money it committed to its charitable activities essentially flat-lined.
AARP Inc.’s contributions to the AARP Foundation grew by only $3.1 million between 2002-2008, a meager 11% increase. Its contributions to AARP’s Legal Counsel for the Elderly actually contracted by $300,000, representing a 9% decline.
So, AARP, Inc. has collected billions of dollar in royalty fees from insurance companies, but has put a net couple million extra dollars into its charitable activities. Where did the rest of the money go?
If only we had reporters who would actually ask these questions.
Update: Red47 poses a good question in the comments. An issue I should have addressed in the post. AARP, Inc. is not a for-profit business. It is a tax-exempt 501 (c) 4 non-profit charitable organization. So, how it spends its revenue is a concern for all taxpayers.
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