Financing the Promotion and Lifestyle of Prem Rawat

Drawing in the financial support needed to underwrite the promotion of Rawat as a ‘teacher’, and to pay for the inordinate expense of his G550 Gulf Stream jet and hotel bills incurred in the course his fifty or so public appearances each year, is achieved through a multiplicity of nationally based organisations.  To date only two of these organisations have been required to publish financial statements, the US based TPRF and the UK based HDSK (formerly Elan Vital). While the bulk of the finances that underwrite Rawat’s promotion and lifestyle remain hidden, analysis of the TPRF and HDSK accounts does provide some insight into the priorities and current performance of the Rawat movement.

Annual statements by TPRF to the IRS are available from Guidestar, HDSK statements to the England and Wales Charities Commission are available online.

The Prem Rawat Foundation - TPRF

TPRF was created as a non profit entity registered with the IRS in 2002.  In 2003 TPRF began a very modest programme of funding humanitarian projects, and although never more than 39% (2007) of  annual expenditure in the years 2003 -2008 was committed to this aspect, it is the humanitarian projects that TPRF gives prominence to its online publicity and numerous press releases. The seven year running total amounts to less than 21%  (The eight year running total amounts to less than 18. 5% ) committed to humanitarian projects. Despite this imbalance between public claim to purpose and actual delivery, TPRF receives a good practice award from Charity Navigator and BBB accreditation largely because TPRF’s account presentations show limited management costs relative to total expenditure. Over its eight years of operation however 80% of TPRF’s expenditure has been geared to the holding of conferences, publishing material about Prem Rawat, operating its website and upon managing the organisation. 

TPRF Income, Expenditure and Humanitarian Aid

Contracts with other entities

TPRF has declared a number of contracts valued at over $50,000 in the years 2007,  2008 and 2009. The largest of these in both years was with Elan Vital Incorporated, the religious purpose non profit organisation, previously called Divine Light Mission, which has promoted Rawat in the US since 1971.  Listed as “Research and Development services in cost share agreement” $479,393 was paid to Elan Vital Inc. in 2007, $458,781 in 2008 a further $383,763 was paid in 2009.  Also in 2009 TPRF gave a grant of $120,000 to Elan Vital Incorporated for a purpose described as “Education”, Elan Vital was closed in the following year . Contracts to the value of  $99,978  and $378,060 were declared with Dunrite Productions, for services related to filming, event organisation and media production. Dunrite is owned by close followers of Prem Rawat, and it has been suggested by former devotees that Prem Rawat himself may have been gifted shares in the Dunrite business although no public statement to this effect has ever been made by either Dunrite or Prem Rawat. In 2008 TPRF paid  Mulberry Street Market Intelligence $310,542 for “marketing” services.

 Human Development through Self Knowledge – HDSK

HDSK is registered as an education charity with the Charity Commission for England and Wales. Created in 1991, under the name Elan Vital this entity has been an important source of financial support for both the promotion of Rawat in a number of countries and of the underwriting of Rawat’s International travels.  Between 1996 and 2009, HDSK contributed a total of £11,548,036 in grants to other Rawat supporting organisations, including almost £2 million  in just four years (2006 – 2009) to the corporations that have operated Rawat’s private planes, the Premier Trust and the Priyan Foundation.  Total income to HDSK in the years 1996 to 2009 amounted to £22,536,965 of which £6 million has potentially been contributed by the UK Government under the gift aid scheme. 

In 2009 HDSK experienced a collapse in donations with annual income falling to its lowest level since 1995/6, amounting to only 48% of the 2008 figure and just 40% of the income received in 2007. A further catastrophic fall in income was reported for 2010 with HDSK receiving just  £364,479,  equivalent to only 18% of the 2007 figure and barely half what the organisation received in 1996.  The management of HDSK has made no comment on these very significant falls in income, which  indicate a radical change in the relationship between the organisation and its erstwhile supporters. HDSK has altered its activities in relation to its changed financial state and made only £12,123 in grants to other organisations in 2010, the largest of these (£8,250) going to Words of Peace Global  [http://www.wopg.org/]. The largest single expenditure (£86,056) by HDSK in 2010 was on staffing, this was followed by £63,423 expended on satellite broadcasting of WOPG produced programming, £49,703 on equipment hire, £35,022 on venue hire with £10,447 spent on travel and motor costs completing the larger areas of expenditure. 

 Income and contributions to other Rawat supporting entities 

Contributions to other entities in 2009

The Priyan Foundation is a private corporation registered in the Netherlands which is jointly registered with Prem Rawat as being the operator of a $60 million Gulfstream 550 jet. 

Materials:

TPRF 2008 Form 990

TPRF 2007 Form 990

TPRF 2006 Form 990