4CA - Queensland's Home for Fake News

4CA - Queensland's Home for Fake News
4CA - Queensland's Home for Fake News Led by John "Cueball" Mackenzie

28 July 2013

IS CAIRNS COUNCIL UNWITTING ACCOMPLICE IN "COLOR RUN" - SO CALLED "CHARITY" EVENT - CALLED BY ONE NEWSPAPER "THE BEST LEGAL BUSINESS SCAM SINCE THE PET ROCK"

MONDAY UPDATE 
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The so-called "Swisse Color Run" is today.  Some 7,000 Cairns residents have registered to run 5km in the Cairns CBD while people throw coloured corn starch at them.  "Fun and healthy", say the organisers.  And a big fund raiser for local charities.  

There are no local organisers of the event.  They are a "crew" going from town to town across Australia, like a carnival of gypsies.  Inherent in the word "gypsy" is the word "gyp".  Is Cairns about to get defrauded by these blow-ins? 

The Color Run is a commercial enterprise.  While Cairns Council Staff told us yesterday that the organisers represented themselves to Cairns nonRegional Council staff as a "charitable corporation", they are NOT.  Color Run Pty
Ltd (ACN159331496) was registered in Australia less than a year ago, and the Color Run websites and marketing events do not have ANY disclosures on them.  Color Run looks to be at least partially owned by X-Tri Australia Pty. Ltd., a for-profit NSW company. 

And of course, no one at Cairns Council bothered to do even a cursory check on this event.  Where is the due diligence in committing time and ratepayer money to an event that shuts down the Esplanade?  An event that is raising serious questions about where all the money is going.

Cairns Council has committed to tens of thousands of dollars in support to this event, with Council staff working overtime, and city facilities handed over.  Roads closed, requiring police overtime.  However the charity advertised to benefit,  the FNQ Hospital Foundation, is likely to see $15,000 or less based on this company's record in other cities.  Council would have saved money by giving the FNQ Hospital Foundation the $15K directly!  The Color Run claims that their Charity Partner is "The Celebrate Life Foundation", founded by Swisse (the vitamin company).  But
the Celebrate Life Foundation (which sounds like it should be a charity) is also a for-profit company, with unknown owners.

Complaints are starting to pile up across Australia, and indeed in America, where the program was first started.  The US has much stricter reporting for charitable contributions, and The Charity Navigator can confirm NO money going to any charity from the Color Run there! 

One newspaper called it "the best legal business scam since The Pet Rock" 

With over 250,000 participating in the Australian Color Run so far, over $12 million is unaccounted for. And questions have started to mount about the event in Australia, as the "charity" component (used to secure free venues, free council services, volunteers to stage the event, free publicity and other suckers) seems to be virtually non-existent.

Is Swisse aware of what's going on?  Or are they financing this "marketing device" and using the charitable component as a front?

And did Cairns Council get duped into spending ratepayer money to support this wholly commercial event?

Want to donate $50 to the FNQ Hospital Foundation?  Write them a cheque.  Want to run and stay healthy?  Why pay Color Run $50 to do it?  

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COLOR RUN COMPLAINTS MOUNT UP


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36 comments:

Johnno Nixon said...

Well stuff me, both my daughter and daughter-in-law paid $55 ech, to enter thinking it all went to local charity etc,. They will freak out when they get this. Those council wankers want a good boot up the butt.

Vi L. Schumm said...

Thanks HBW. Where else would we get this news. If you can do the research, why can't Council?

Anonymous said...

Sounds like Mayor Quimbi from Springfield in the "Simpsons" and getting duped into building a Mono Rail.

Ivor said...

Is it really spelt color?

Anonymous said...

Why are we being continually morally blackmailed into providing funding for the Public Hospital. We pay rates and taxes for this. And now the Council chucks our money at scam merchants as well. If giant edifices to the LNP gov weren't being built in Brisvegas and all that back pay that keeps mounting up while they work out what to do with it was allocated to hospitals we could direct our efforts of fund raising to needy organisations that aren't under the obligation of government funding.

CBD Warrior said...

Ivor, it's actually spelt "color" - apparently the trademark being owned by the Yanks.

https://www.facebook.com/TheColorRunAustralia/posts/474168406003041

Did the hospital board and Bob Norman approve this association? Another lazy arsehole that's blown into an LNP mates job.

Anonymous said...

Anyone with a ounce of intelligence could see the money that was going to be made by the Color Con Artists. What is more concerning is the Hospital Foundation continuing to rape the community of much needed moneys. Its all about their egos and has been for a long time. Cairns and far north Queensland has been on its knees for a long time. The city and region functions off the back of small business owners and it could be generalised that most people live here for the lifestyle, environment, and other ease upon which live can be lived. Yet moneys that are generated from these fundraising scams should go back to promoting and building the economic potential of the city and region for all peoples benefit and not for the minority that use the hospital. The Hospital Foundation board and staff are selfish. Cairns and the region suffers and yet they continue to take.

Anonymous said...

I was there, and many of my friends and I wait with bated breath to see if little gem of information gets a mention in The Cairns Post or 7 Local News. Seven thousand very angry people will want to know where their money went. Thanks for this HBW.
And anonymous 11:46 is spot on: the more the community raises with such events, the less government will fund what is rightly their responsibility.

Tony Hillier said...

Once again HBW shows up the total inadequacy and impotency of our flaccid Murdoch-owned organ — not to mention the Cairns Regional Council and the LNP-stacked Hospital Foundation board.

Farkin Elle said...

This article is being shared around my Farcebook page by so many non-usual Hillbilly readers! Would love to see the spike in readership from today! Well one HBW on getting the stories out there. Strange thing was I went to register before I saw how much it was going to cost and was asked the best media outlet in town- I entered your details!

Anonymous said...

This is why I don't give to people at shopping centres supposedly collectly for charity. Why I don't give to World Vision because by the time the admin get their cut the real people don't get much. As HBW said if you want to donate to the hospital write them a cheque and if you want to do a 5km run don't pay anyone, especially $50 to do it!

Anonymous said...

We're already on a budget...wish we'd known this beforehand and saved our $$$ and energy...not happy!

Bazza said...

Who is paying for the clean up of this mess, ratepayers?
Who is suppling the marquees etc for this, I guess events NQ.

Anonymous said...

I'm sure the Hospital Foundation will appreciate any money that they get donated. Isn't 8000 people running 5km on a Sunday morning the best thing to help our hospital system anyway???? Good on the Color Run for encouraging movement!

Anonymous said...

To Anon 20:39
Are you employed by The Color Run P/Ltd ?
8000 entrants @ $55.00 is $440000.00.
We, already over-charged ratepayers cough up for the clean up, so that should leave about $400000.00 for the Hospital Foundation.
I bet the fuck it doesn't get a tenth of that!

Anonymous said...

Events NQ profiteering

Anonymous said...

By my estimate $2 out of $50-$55 it cost to enter goes to the hospital. I guess it is up to the participants to work out whether going for a 5km run and getting coloured cornflour sprayed over them was value for money while a private company giving the impression it was a charity takes the remaining $48-$53.

Johnno Nixon. said...

Well Mr, Mackenzie has the story now, I sent it to him. Wonder if it gets a mention on the LNP Radio Show!!!!!.

Anonymous said...

I'm sure other companies that have supported this event like Telstra and Sony would be very interested to discover the truth about the color run and its organisers. I can only hope that the color run organisers can come forth to defend themselves and account for the entrants fees that they assumed was going to charity rather than covering costs.

Anonymous said...

If donations were made directly to the Charities they would be classed as a tax deduction for each individual , but these are not! These registration fees are simply lining The Color Run's pockets. Wake up people!

Anonymous said...

Thanks for sharing this info and keeping the public aware. i nearly joined this but im in Melbourne that time and my son nearly joined but is rostered to work that day. To ORGANIZERS...PLEASE EXPLAIN! This is open is open for you to comment and explain the FACTS and FIGURES. To the PUBLIC share this info so others will be AWARE or shall I say BEWARE!!!

Anonymous said...

I am completely disgusted!! Paid all that money thinking that sick kids would benefit, not scamming scumbags!!

Jethro said...

A good point made above. Why is the community being asked to raise more and more funds for our public hospital? Yes, we know the Newman Government is slashing funding like all hell, but isn't it the JOB of a government to provide adequate health services? Isn't this why we elect a government? Instead we get "fund raisers" like this one where the private company gives themselves a bloody good bite of the profits, then hands over a certain amount to the hospital. This isn't right.
I often wonder as well what happens to the millions of dollar s raised each year at the "Relay for Life". We never hear of where that money goes to, do we?

Anonymous said...

How much have you dontaed to the Hospital foundation lately? I'm assuming nothing close to 15k.....

The Color run wasn't purely for charity. It brought over 8000 people together from Cairns and neighbouring regional areas for an excellent family day while keeping the promotion of an active lifestyle consistent.

My only criticism in agreeance with your annoying rant is the Color Run "running" the risk of using charity donationals as an unethical marketing ploy for the event. However at the end of the day, $15,000 is still $15,000 that the Hospital Foundation wouldn't have had without the event.

My question to you is - If they event had no association with a charity what-so-ever, would you still be jumping up and down like the president of a student union club?

Now - go home, make some "colored corn starch, throw it around in your back yard, have some fun. Cheer up mate ;)

Demonised Ghoul of Oak Beach said...

Outrageous!

Cairns Council goes out of its way to harm The Haunting of Oak Beach a Halloween Experience for the kids of the region http://www.hauntingofoakbeach.com

If the above is true the Council and ratepayers have been duped.

Anonymous said...

This is why real charities delivering real community outcomes struggle to get real charitable donations. No doubt it was a great event and fun had by all, however the local organisers should have clarified what % would go to the charity. There is nothing wrong with profit based companies running charity events it should be made very clear however how much of the ticket price was going to the charity. Most real charities can not afford to run these events as they spend their money on their objects, there are many charities (legit) that make more profits and provide more reward for CEO and senior Management than many companies profit! The whole system needs review. If you research HBW you will find there are a few charities/NFP in Cairns that have registered companies of the same name where funds are directed to. Look at the new restaurant in town for example.

Anonymous said...

Cairns folk were ripped off, but spare a thought for Anchorage Alaska.

"The Color Run is the best legal business scam since The Pet Rock."

Anchorage Alaska 23 June 2013

Estimated gross receipts from entry fees equal $525,000, minimum.

Anchorage costs -- $34,000 rental for the Delaney Park Strip, $14,916 in fees for off-duty Anchorage police officers to police, and $8,000 for portable toilet rentals -- equal $56,916.

Anchorage charitable contributions equal $10,000, maximum.

So let's see, $525,000 minus $66,916 equals $458,084."

"The Color Run™ is not a charity or non-profit organization. The Color Run, LLC is a 'for profit' event company."

Anonymous said...

And also quite recently:-

Ypsilanti Michigan 9th May 2013

So, here’s the math as I figure it… The last official count that I heard was that 17,500 had registered for today’s run. According to their site, registration, depending on how big of a team you to have, runs from $45 to $55. For the purposes of this exercise, we’ll be conservative, and assume $45. 17,500 people, paying $45 a piece, would yield a whopping $787,500. Assuming my source was right, and our local charities received $13,000, that means they received considerably less than 2% of the total take. And, for that $13,000, the corporate entity behind the Color Run not only got a lot of free publicity, but they also got a great deal of free labor… Not a bad business model, huh?

Tony Hillier said...

The Compost and the Council will no doubt remain steadfastly silent, in the hope that criticism of this rort of a charity run will fade away.

Skid said...

Dont get me wrong , I love the cairns ironman event and intend to compete next year, but how many locals volunteer to help and how much does USM donate to cairns local charities. I can tell you also that the registration is a hell of a lot more than a lousy 50 bucks! I say good on color run for donating any money to the hospital foundation no matter what the amount. I participated in the color run and it was an awesome event. Everyone was upbeat and positive which created a great atmosphere. It got a lot of people off their butts and into the community. GO COLOR RUN!

KitchenSlut said...

The new format is very blue?

Anonymous said...

Smartest thing I've seen in ages, come on people don't be jealous. $400,000 for a weekend not bad at all.

Events NQ said...

Just to correct comments above, Events NQ did not supply any of the equipment on the day. Colour Run supplied their own branded tents which they tour with nationally. If any of the local hire equipment, fencing, toilet or A/V companies made money out of the Colour Run then that's just another local business who benefited out of the event coming to Cairns. Hiring out equipment is what local hire companies do.

ellie said...

Yes, in America...

Anonymous said...

MINORITY??!! that use the hospital! Are you stupid or just apathetic & ignorant?

Anonymous said...

There is an old saying "you can fool all of the people some of the time & some of the people all of the time" Ill leave you to work out what applies here