Very poor
This charity's score is 49%, earning it a Zero-Star rating.
This overall score is calculated from multiple beacon scores, weighted as follows: 90% Accountability & Finance, 10% Leadership & Adaptability. https://www.charitynavigator.org/ein/208233098
They were a for profit music store from Colorado. They closed their store to focus only on selling in schools around the country. Here are links about that.
https://www.denverpost.com/2019/12/16/rockley-music-center-closing-lakewood-location/
Prior to closing their store they had a 3.3 star out of 5 Yelp rating. Here is that link, https://www.yelp.com/biz/rockley-music-center-lakewood
They have since opened a new store in CO that is open by appointment.
This link was wiped from the web but involved a lawsuit filed by Jacobs Music in Philadelphia.
I am yet another victim of their fraud, an egregious one in which they sold me a defectively rebuilt 85-key vintage Steinway Model A from 1886, supposedly rebuilt in accordance with Steinway specifications. 40k was only the amount they took from me at the sale. My time and sanity is what they took from me since then, going after the "local dealer" and then Tobin Rockley, for many months, after spending a year and thousands just trying to understand the extent of the problems with the piano.
Unlike most folks on Piano World, I am not a piano expert but am a lawyer with decades of experience in financial and tax fraud!
I am preparing a private lawsuit and a NY attorney general complaint against them - NY clearly provides for not only civil but criminal penalties for their fraud and lack of compliance with charitable solicitation rules.
I am aware and famiilar with the Jacobs Music Stores' Federal action against them, but it also seems they (Rockley Family Foundation) have done some work "scrubbing" the web of negative publicity.
We understand per their history with other cases the Rockley Family Foundaion settled this, but the issues that this attorney raised are still valid.
Definition of fair market value from the IRS:
IRS Publication 561 - Determining the Value of Donated Property: "Fair market value. Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. If you put a restriction on the use of property you donate, the FMV must reflect that restriction."
Treas. Reg. 20.2031-1(b)- Valuation of property in general: "The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts." This is in the estate context, but is generally the definition used for tax purposes.
Info related to charitable donations in connection with receipt of goods / services:
Treas. Reg. 1.170A-1(h) Payment in exchange for consideration—
(1) Burden on taxpayer to show that all or part of payment is a charitable contribution or gift. No part of a payment that a taxpayer makes to or for the use of an organization described in section 170(c) that is in consideration for (as defined in § 1.170A-13(f)(6)) goods or services (as defined in § 1.170A-13(f)(5)) is a contribution or gift within the meaning of section 170(c) unless the taxpayer—
(i) Intends to make a payment in an amount that exceeds the fair market value of the goods or services; and (ii) Makes a payment in an amount that exceeds the fair market value of the goods or services.
IRS Publication 526 - Charitable Contributions: "If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. For the excess amount to qualify, you must pay it with the intent to make a charitable contribution."
General info from IRS Website - Charity Auctions: "Donors who purchase items at a charity auction may claim a charitable contribution deduction for the excess of the purchase price paid for an item over its fair market value. The donor must be able to show, however, that he or she knew that the value of the item was less than the amount paid. For example, a charity may publish a catalog, given to each person who attends an auction, providing a good faith estimate of items that will be available for bidding. Assuming the donor has no reason to doubt the accuracy of the published estimate, if he or she pays more than the published value, the difference between the amount paid and the published value may constitute a charitable contribution deduction."http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Charity-Auctions
According to the IRS you can only deduct an amount greater than the actual retail selling price as a donation. Claiming you can donate 45% off a heavily discounted price is outright fraudulent according to IRS tax law. But, here is the owner of the charitable foundation making that very claim on TV.
https://www.krqe.com/news/like-new-musical-instruments-for-sale-to-benefit-rio-rancho-schools/
