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JREF Million Dollar Challenge
Frequently Asked Questions
Rev 1.0b: 15-Feb-2005
NOTE: This is a totally unofficial and unauthorized FAQ. This is one person's interpretation of the Challenge rules and observations of the Challenge process. Whenever this document and the official Challenge rules are in conflict, the Challenge rules win. Whenever this document and an official JREF spokesman are in conflict, the official spokesman wins. In both cases, this document will be updated to reflect the official stand as soon as possible.
Index of Questions
0. What should I do first?
1. Challenge history and trivia
1.1. What’s the history of the Challenge?
1.2. Why is there a Challenge in the first place?
1.3. How many applicants have there been for the Challenge?
1.4. How many people have passed the preliminary test?
1.5. How many people have passed the official test?
2. Questions about the wording and nature of the Challenge
2.1. What do you mean by “mutually agreed upon�
2.2. What do you mean by “paranormal�
2.3. Does (this) qualify as paranormal?
2.4. Why the limitation on things that might injure me?
2.5. Why the limitation on spiritual and religious claims?
2.6. Why is the JREF so hard-nosed about not changing the rules?
2.7. I disagree with a rule, or a rule shouldn’t apply in my case. How do I go about changing it or getting it waived?
3. Questions about the prize money
3.1. Does the prize money really exist?
3.2. That’s interesting evidence, but I still don’t believe that the money exists.
3.3. If someone wins, how will they be paid?
4. Applications and Applicants
4.1. How do I apply?
4.2. What should I do before I apply?
4.3. What should I expect during the application process?
4.4. How long does a typical application take to process?
4.5. Why isn’t there a standard test for some standard paranormal claims, like ESP or psychokinesis?
4.6. How much of my application is confidential?
4.7. Where can I find a list of all the people who have ever applied?
5. The Application Process
5.1. What happens between my submitting the application and the preliminary test?
5.2. What happens between the preliminary test and the official test?
5.3. Why is the application process so difficult?
5.4. Who pays for my expenses, and why?
5.5. Who pays for the JREF’s expenses, and why?
Questions and Answers
0. What should I do first?
Before you read any further into this FAQ, go read the actual Challenge Rules at http://www.randi.org/research/challenge.html. No, really. Go do that now. Don’t just skim through it; take 10-15 minutes (or as long as you need) to read it thoroughly. Then come back.
1.1. What’s the history of the Challenge?
The Challenge started in 1964 when James Randi put up $10,000 of his own money to the first person who could provide objective proof of the paranormal [1]. Since then, the prize money has grown to the current $1,000,000, and the rules regarding the Challenge have gotten more and more official and legal.
1.2. Why is there a Challenge in the first place?
During a radio panel discussion, James Randi was challenged by a parapsychologist to “put [his] money where [his] mouth isâ€, and Randi responded by offering to pay anyone who demonstrated a paranormal power under satisfactory observational conditions. [2]
1.3. How many applicants have there been for the Challenge?
Between 1964 and 1982, Randi declared that over 650 people had applied [3]. Between 1997 and February 1, 2005, there had been a total of 352 official, notarized, applications. Of this new batch, 298 of them have been closed, and 54 of them are still open. By April 1, 2005, another 20 of the open ones will be closed due to lack of activity or other reasons [4].
1.4. How many people have passed the preliminary test?
None since 1997, although in 1982 Randi reported that 54 people had [5].
1.5. How many people have passed the official test?
None.
2.1. What do you mean by “mutually agreed upon�
“Mutually agreed upon†means that neither side can force the other side into doing or saying something that they don’t want to, and that if no agreement can be reached, the application process is terminated, with no blame or fault on either side.
It’s easy to point fingers after a Challenge claim comes to an impasse and say that the other side was being unreasonable. This phrase is used to insure that that finger-pointing has no merit.
2.2. What do you mean by “paranormal�
This is a remarkably difficult word to define correctly.
Webster’s Online Dictionary defines it as “not scientifically explainable; supernaturalâ€, and it defines “supernatural†as “of or relating to an order of existence beyond the visible observable universe; departing from what is usual or normal especially so as to appear to transcend the laws of nature; attributed to an invisible agent (as a ghost or spirit)â€. But past JREF Challenge rulings have shown that certain events which depart from what is usual or normal aren’t always considered paranormal by the Challenge administrators.
2.3. Does (this) qualify as paranormal?
The best way to answer this is to give a list of things which people commonly apply for.
The following things have been ruled paranormal in the past:
Dowsing. ESP. Precognition. Remote viewing. Speaking with the dead. Violations of Newton’s Laws of Motion. Homeopathy. Chiropractic healing beyond back/joint problems. Faith healing. Psychic surgery.
The following things have been ruled NOT paranormal or eligible for the Challenge in the past:
UFOs. Bigfoot or other legendary creatures. Living without eating. Anything that is likely to cause injury. Cloud-busting. Religious and/or spiritual claims. Exorcism [6].
The following things have an ambiguous history regarding their paranormalcy:
Perpetual motion machines.
2.4. Why the limitation on things that might injure me?
Essentially, the JREF doesn’t want to be seen as even slightly condoning self-injury. It has partly to do with legal issues, partly to do with the image of the JREF, and partly to do with past experience with applicants. Most of the applications that are self-injurious involve living for extended periods of time without eating, and the evidence gathered over millennia is pretty strong that the human body does indeed die after a prolonged period without food.
In Randi’s own words:
‘A test of [someone who says he doesn’t need to eat] would occupy much more of my time than I'm willing to invest, and it would only feed the arsenal of those who love to accuse us of investigating only the easy cases. As soon as that test would be completed, another similar one would pop up, and we'd be off again -- “You tested him, why won't you test me?â€â€™ [7]
2.5. Why the limitation on spiritual and religious claims?
It’s not so much the claim as it is that no one who has applied has been able to come up with a proof that is verifiable under
controlled conditions [8]. It’s not enough to reason your way to the existence of something spiritual or religious; you need to be able to prove it scientifically. Most spiritual apologists go to great lengths to explain why the existence of a higher power cannot be demonstrated scientifically, and that puts such discussions out of the scope of the Challenge.
Think of it this way. The JREF doesn't so much say “God doesn’t existâ€; it’s more along the lines of “God doesn’t act in a way that is scientifically verifiable†or “God moves in mysterious ways.†Most spiritual people would actually agree with that last statement, so they and the JREF are on the same side and the Challenge therefore does not apply to them.
2.6. Why is the JREF so hard-nosed about not changing the rules?
It all comes down to the nature of a challenge. It's not a contest; there are not two parties competing for the same prize. It's a challenge. It's someone who deep down doesn't believe you can do what you say you can do daring you to do what you say you can do. It's not at all a friendly agreement. It's an adversarial arrangement. And because of that, the JREF sees no reason to change the rules for its adversaries.
It's also key to understanding the nature of this relationship to keep in mind that the JREF is the one doing the challenging. If this were a court of law, the JREF would be in the role of plaintiff and the person who applies for the Challenge is in the role of defendant.
This adversarial nature, with you as the defendant, is important to keep in mind as you go through the challenge process.
2.7. I disagree with a rule, or a rule shouldn’t apply in my case. How do I go about changing it or getting it waived?
You don't. Remember, you’re in the role of defendant, and defendants don’t usually get to choose the rules under which they are judged. You can ask to get a rule changed, but you should expect to have your request rejected.
3.1. Does the prize money really exist?
The short answer: Yes.
The medium-length answer: The money is held in the form of bonds held by Goldman Sachs, a much respected firm. Anyone can verify that the money exists by requesting the information from the JREF. They will in turn forward you a report from Goldman Sachs.
The long answer: The JREF is a tax exempt organization, so they are required by law to have a level of financial transparency. That means that the public can request things like an annual report and copies of JREF's 990 (the tax return non-profits file). Go to http://atgdata.fdncenter.org/990search/search.php to look up JREF's 990. Contained within these types of documents is enough information to verify that the organization does indeed have enough assets to cover the prize if necessary. The contract between the claimant and JREF is binding enough that JREF has to pay the prize if someone wins it. As a savvy applicant, all you need to do is verify that the organization holds enough assets to cover the prize. Also, if JREF was not able to hold up its end of the bargain the IRS would likely investigate and possibly pull JREF's tax exempt status. Rest assured the money is there [9].
Long answer, continued: The JREF prize seems to be held in a way that is similar to an endowment fund. Non-profits often create reserves of assets called endowments to build up enough money to take care of the organization in the case of bad financial times, or to save up money for a project down the road, like building a new facility or starting a large new program that would require a lot of capital. Endowment funds are held separately from the other money coming in and out of an organization. For example, The JREF prize money is being held separately from the general operating funds of the organization. This prevents JREF from accidentally spending the prize money on the light bill. It is never a good idea to just let large sums of money sit in a savings account for years and years, so most non-profits invest their endowment funds. The way they invest it is really not important. JREF invests in bonds which is fine. If they have to pay someone they will liquidate 1 million in bonds and pay the claimant. I know you are going to ask “What if the bonds cannot be easily liquidated?†Well, that would be incredibly stupid on JREF's part. No one would invest in illiquid assets if they knew they may need to get to the money quickly. If JREF did not pay a winning claimant in a reasonable amount of time they would be open to a law suit for breech of contract. Non-profits do not like getting involved in law suits so you can bet the assets can be easily liquefied. The claimant will be paid. JREF states that the funds are held in bonds so that a claimant can feel at ease about the ability of JREF to pay. That JREF will do so is going above and beyond the requirements of the law and the generally accepted practices of good responsible non-profits. It is an enormous act of good faith on JREF’s part [10].
3.2. That’s interesting evidence, but I still don’t believe that the money exists.
It's important to realize that if at this point you still doubt that the money exists, your doubt is in the entire American bond system in general and Goldman Sachs specifically, and not with the JREF. There is really not any more evidence the JREF can provide you. For concerns regarding Goldman Sachs, please inquire at their Web site, http://www.gs.com/.
3.3. If someone wins, how will they be paid?
Although the prize money is held in bonds as a way to publicly show that the money really does exist, the bonds will be converted to US dollars before being paid. The first $10,000 of the prize money will be paid by check, as stated in the Challenge rules. The usual method for paying an amount as large as the remaining $990,000 is via electronic transfer, and it is reasonable to assume that that is how this prize money will be paid as well.
4.1. How do I apply?
Fill out the application form, get it notarized, and mail it in.
A JREF employee who goes by the name of KRAMER will handle the application process. Please don’t send it straight to Randi, as he will not handle it personally and so sending it to him will only delay the process.
It is important that the application form be filled out in good, grammatical English. The people at the JREF who will be going through the application process with you are only guaranteed to be fluent in English. The hardest part of the application process will be refining your claim, and so it is vital that both sides understand each other as clearly as possible.
4.2. What should I do before I apply?
Get ready for a grueling, stress-filled process. Remember that in this situation, you and the JREF are adversaries, and they are going to do everything they can possibly think of to make you back down or make you look foolish. Remember, it's not a contest, it's a challenge. This isn't going to be like taking a test. This is going to be like going to court.
Make sure you are healthy. Get both a physical and mental check-up. Many people who claim to have paranormal powers are, sadly, under an advanced state of delusion instead. That isn't to say that you are, but it's a hypothesis which will come up during the application process. So be prepared for it in advance.
This next step is very important, because it will be the first big hurdle you will face:
Tell your physician and/or psychiatrist that you have a paranormal ability and that you plan on demonstrating your paranormal ability in front of numerous skeptics, and heed his advice.
The reason that this is a big hurdle is this: you should trust your physician/psychiatrist; he's on your side, after all. If you cannot convince him that applying for the Challenge is a good idea, you won't stand a chance against people you don't trust and who are not on your side.
After you are sure you are healthy and you have told your doctors about your intentions, make sure you can actually do the thing you will be claiming you can do in the application. If you know your ability is based on a trick or deception, stop right here and don't apply. Don't lie to yourself.
If you are sure you are not lying to yourself, find someone you know who is a reasonable, scientific sort and talk to him about your ability. Ask him to be as unfriendly and skeptical as possible. Then demonstrate it to him. This is the second big hurdle. If you can convince a brutally-honest friend that you can do something paranormal, then keep going. Otherwise, stop; you will have no chance convincing the JREF's testers.
Make sure you can reliably perform this ability. Make sure that standard things you would expect in the challenge, such as a room full of skeptics, or a physical object near or between you and the thing you want to affect, don’t affect your ability. If you can't read someone's mind when there's a skeptic nearby, or you can't see through a blindfold when there's a piece of cardboard between you and the object you are supposed to be able to see, then don't apply. These are just the sorts of things you will be subjected to during the test.
When you have done all these things:
- after you have talked to a doctor,
- after you have done a lot of soul-searching about your ability,
- after you have convinced a good friend who won't just nod and agree with everything you say, and
- after you are sure you can overcome any obstacle the testers could possibly throw at you:
then go ahead and fill out the application.
4.3. What should I expect during the application process?
You should expect a lot of (written) communication between yourself and the JREF. You should also expect to do a bit of traveling for the actual test, unless you happen to live in an area with an established skeptical group, which is uncommon.
4.4. How long does a typical application take to process?
This is a tough question, because there are not really any “typical applicationsâ€. An application made by an earnest applicant will take 1-6 months to handle, considering the refining of the application wording and the arranging of the testers for the preliminary test. Almost everything that has taken longer than that has turned out to come from an insincere applicant.
4.5. Why isn’t there a standard test for some standard paranormal claims, like ESP or psychokinesis?
In a nutshell, there's really no such thing as a “standard paranormal claimâ€. (Dowsing comes close, but testing dowsing takes an elaborate setup outside that has to be redone for every claimant anyway.) Even a test using Zener cards (the cards with wavy lines and stuff on them) isn't good for every person who believes he has ESP.
The Challenge is designed to test only what the applicant truly claims to be able to do. No two people claim to do exactly the same thing, so no two tests are going to follow the exact same process.
4.6. How much of my application is confidential?
Assume none of it is. If this bothers you, it is better that you do not apply.
4.7. Where can I find a list of all the people who have ever applied?
Since the Challenge has been going on since before the World Wide Web gained in popularity, no such list exists online. The JREF has limited resources, so most of the applications are actually just sitting in a file cabinet at the JREF headquarters in Florida. In other words, if you want a lot of details about the former applicants, you are going to have to go do your own research down at their headquarters.
5.1. What happens between my submitting the application and the preliminary test?
If all goes as expected, what happens at this point will be the hardest part of the process, and rightly so. This is where you and the JREF decide on the specifics of your test. Be prepared to take into account things you might not have thought of before.
For instance, maybe you can magically make monkeys fly out of your butt. On your application, that's what you write - “I can make monkeys fly out of my butt.†Once the JREF accepts your application, a number of things will have to be clarified.
- What kind of monkeys will fly out of your butt?
- How many?
- How long will it take?
- Where exactly will they appear to come out of?
So your simple nine-word sentence “I can make moneys fly out of my butt†will end up being the far more precise “I will produce between two and seven adult spider monkeys, weighing between three and five pounds each, over a period of not more than thirty minutes. These monkeys will appear from a region approximately six inches above my rectal opening, although there will not be a visible hole there.â€
Even after all of that, expect the testers to demand an X-ray of your midsection right before the monkey production, and for you to be weighed both before and after the monkey production to affirm that the monkeys did not come from your body weight.
5.2. What happens between the preliminary test and the official test?
Probably some more travel, and a news reporter or two on your doorstep. What you should expect, however, is for none of the agreed-upon documents to change. There will not be a renegotiation of your abilities or how they will be tested.
5.3. Why is the application process so difficult?
Well, it is for a million dollars, after all.
A lot of it has to do with the nature of previous applicants. The JREF, through much experience, has realized that most of the people who apply are either under the mistaken impression that they actually have a paranormal power, or under the mistaken impression that they can pull a fast one on the JREF and swindle them out of the prize money. While you may be neither mistaken nor a swindler, the JREF will always assume that you are one or the other. It's ugly and it's unfair, but that's how it is, and you need to prepare yourself for that reaction.
5.4. Who pays for my expenses, and why?
You do. It's spelled out in the Challenge rules. Remember that your position in the Challenge is that of defendant. But it’s also to realize that there is an important difference between this and a court of law: you are not innocent until proven guilty. Rather, you are normal until proven paranormal, and it is up to you to prove your paranormality. This means that you have to pay for travel, you have to pay to build any devices you want to demonstrate, and so forth.
5.5. Who pays for the JREF’s expenses, and why?
Again, you do, and again, it's spelled out in the Challenge rules. The reason is that the JREF doesn't see any reason for it to spend any money to help you defend yourself.
Footnotes:
[1] Randi, James. FLIM-FLAM!, chapter 13 beginning.
[2] Ibid.
[3] Ibid.
[4] The thread titled “Can we get a Challenge historical wrapup/tally?â€, http://www.randi.org/vbulletin/showthread.php?s=&threadid=52586. Look for Gr8wight’s first post.
[5] FLIM-FLAM!, chapter 13 beginning.
[6] The thread titled “Randi Gets Rude...â€, http://www.randi.org/vbulletin/showthread.php?s=&threadid=19874. Look for Randi’s two posts.
[7] Ibid.
[8] The thread titled “THE GOD THREADâ€, http://www.internationalskeptics.com/forums/showthread.php?s=&threadid=51642. See the first post in the thread, by KRAMER.
[9] The thread titled “$$$$$$$$$$$$$$$$$$$$$$$$$$$$$â€, http://www.randi.org/vbulletin/showthread.php?s=&threadid=52169. Look for Keri’s first post.
[10] Ibid.
Frequently Asked Questions
Rev 1.0b: 15-Feb-2005
NOTE: This is a totally unofficial and unauthorized FAQ. This is one person's interpretation of the Challenge rules and observations of the Challenge process. Whenever this document and the official Challenge rules are in conflict, the Challenge rules win. Whenever this document and an official JREF spokesman are in conflict, the official spokesman wins. In both cases, this document will be updated to reflect the official stand as soon as possible.
Index of Questions
0. What should I do first?
1. Challenge history and trivia
1.1. What’s the history of the Challenge?
1.2. Why is there a Challenge in the first place?
1.3. How many applicants have there been for the Challenge?
1.4. How many people have passed the preliminary test?
1.5. How many people have passed the official test?
2. Questions about the wording and nature of the Challenge
2.1. What do you mean by “mutually agreed upon�
2.2. What do you mean by “paranormal�
2.3. Does (this) qualify as paranormal?
2.4. Why the limitation on things that might injure me?
2.5. Why the limitation on spiritual and religious claims?
2.6. Why is the JREF so hard-nosed about not changing the rules?
2.7. I disagree with a rule, or a rule shouldn’t apply in my case. How do I go about changing it or getting it waived?
3. Questions about the prize money
3.1. Does the prize money really exist?
3.2. That’s interesting evidence, but I still don’t believe that the money exists.
3.3. If someone wins, how will they be paid?
4. Applications and Applicants
4.1. How do I apply?
4.2. What should I do before I apply?
4.3. What should I expect during the application process?
4.4. How long does a typical application take to process?
4.5. Why isn’t there a standard test for some standard paranormal claims, like ESP or psychokinesis?
4.6. How much of my application is confidential?
4.7. Where can I find a list of all the people who have ever applied?
5. The Application Process
5.1. What happens between my submitting the application and the preliminary test?
5.2. What happens between the preliminary test and the official test?
5.3. Why is the application process so difficult?
5.4. Who pays for my expenses, and why?
5.5. Who pays for the JREF’s expenses, and why?
Questions and Answers
0. What should I do first?
Before you read any further into this FAQ, go read the actual Challenge Rules at http://www.randi.org/research/challenge.html. No, really. Go do that now. Don’t just skim through it; take 10-15 minutes (or as long as you need) to read it thoroughly. Then come back.
1.1. What’s the history of the Challenge?
The Challenge started in 1964 when James Randi put up $10,000 of his own money to the first person who could provide objective proof of the paranormal [1]. Since then, the prize money has grown to the current $1,000,000, and the rules regarding the Challenge have gotten more and more official and legal.
1.2. Why is there a Challenge in the first place?
During a radio panel discussion, James Randi was challenged by a parapsychologist to “put [his] money where [his] mouth isâ€, and Randi responded by offering to pay anyone who demonstrated a paranormal power under satisfactory observational conditions. [2]
1.3. How many applicants have there been for the Challenge?
Between 1964 and 1982, Randi declared that over 650 people had applied [3]. Between 1997 and February 1, 2005, there had been a total of 352 official, notarized, applications. Of this new batch, 298 of them have been closed, and 54 of them are still open. By April 1, 2005, another 20 of the open ones will be closed due to lack of activity or other reasons [4].
1.4. How many people have passed the preliminary test?
None since 1997, although in 1982 Randi reported that 54 people had [5].
1.5. How many people have passed the official test?
None.
2.1. What do you mean by “mutually agreed upon�
“Mutually agreed upon†means that neither side can force the other side into doing or saying something that they don’t want to, and that if no agreement can be reached, the application process is terminated, with no blame or fault on either side.
It’s easy to point fingers after a Challenge claim comes to an impasse and say that the other side was being unreasonable. This phrase is used to insure that that finger-pointing has no merit.
2.2. What do you mean by “paranormal�
This is a remarkably difficult word to define correctly.
Webster’s Online Dictionary defines it as “not scientifically explainable; supernaturalâ€, and it defines “supernatural†as “of or relating to an order of existence beyond the visible observable universe; departing from what is usual or normal especially so as to appear to transcend the laws of nature; attributed to an invisible agent (as a ghost or spirit)â€. But past JREF Challenge rulings have shown that certain events which depart from what is usual or normal aren’t always considered paranormal by the Challenge administrators.
2.3. Does (this) qualify as paranormal?
The best way to answer this is to give a list of things which people commonly apply for.
The following things have been ruled paranormal in the past:
Dowsing. ESP. Precognition. Remote viewing. Speaking with the dead. Violations of Newton’s Laws of Motion. Homeopathy. Chiropractic healing beyond back/joint problems. Faith healing. Psychic surgery.
The following things have been ruled NOT paranormal or eligible for the Challenge in the past:
UFOs. Bigfoot or other legendary creatures. Living without eating. Anything that is likely to cause injury. Cloud-busting. Religious and/or spiritual claims. Exorcism [6].
The following things have an ambiguous history regarding their paranormalcy:
Perpetual motion machines.
2.4. Why the limitation on things that might injure me?
Essentially, the JREF doesn’t want to be seen as even slightly condoning self-injury. It has partly to do with legal issues, partly to do with the image of the JREF, and partly to do with past experience with applicants. Most of the applications that are self-injurious involve living for extended periods of time without eating, and the evidence gathered over millennia is pretty strong that the human body does indeed die after a prolonged period without food.
In Randi’s own words:
‘A test of [someone who says he doesn’t need to eat] would occupy much more of my time than I'm willing to invest, and it would only feed the arsenal of those who love to accuse us of investigating only the easy cases. As soon as that test would be completed, another similar one would pop up, and we'd be off again -- “You tested him, why won't you test me?â€â€™ [7]
2.5. Why the limitation on spiritual and religious claims?
It’s not so much the claim as it is that no one who has applied has been able to come up with a proof that is verifiable under
controlled conditions [8]. It’s not enough to reason your way to the existence of something spiritual or religious; you need to be able to prove it scientifically. Most spiritual apologists go to great lengths to explain why the existence of a higher power cannot be demonstrated scientifically, and that puts such discussions out of the scope of the Challenge.
Think of it this way. The JREF doesn't so much say “God doesn’t existâ€; it’s more along the lines of “God doesn’t act in a way that is scientifically verifiable†or “God moves in mysterious ways.†Most spiritual people would actually agree with that last statement, so they and the JREF are on the same side and the Challenge therefore does not apply to them.
2.6. Why is the JREF so hard-nosed about not changing the rules?
It all comes down to the nature of a challenge. It's not a contest; there are not two parties competing for the same prize. It's a challenge. It's someone who deep down doesn't believe you can do what you say you can do daring you to do what you say you can do. It's not at all a friendly agreement. It's an adversarial arrangement. And because of that, the JREF sees no reason to change the rules for its adversaries.
It's also key to understanding the nature of this relationship to keep in mind that the JREF is the one doing the challenging. If this were a court of law, the JREF would be in the role of plaintiff and the person who applies for the Challenge is in the role of defendant.
This adversarial nature, with you as the defendant, is important to keep in mind as you go through the challenge process.
2.7. I disagree with a rule, or a rule shouldn’t apply in my case. How do I go about changing it or getting it waived?
You don't. Remember, you’re in the role of defendant, and defendants don’t usually get to choose the rules under which they are judged. You can ask to get a rule changed, but you should expect to have your request rejected.
3.1. Does the prize money really exist?
The short answer: Yes.
The medium-length answer: The money is held in the form of bonds held by Goldman Sachs, a much respected firm. Anyone can verify that the money exists by requesting the information from the JREF. They will in turn forward you a report from Goldman Sachs.
The long answer: The JREF is a tax exempt organization, so they are required by law to have a level of financial transparency. That means that the public can request things like an annual report and copies of JREF's 990 (the tax return non-profits file). Go to http://atgdata.fdncenter.org/990search/search.php to look up JREF's 990. Contained within these types of documents is enough information to verify that the organization does indeed have enough assets to cover the prize if necessary. The contract between the claimant and JREF is binding enough that JREF has to pay the prize if someone wins it. As a savvy applicant, all you need to do is verify that the organization holds enough assets to cover the prize. Also, if JREF was not able to hold up its end of the bargain the IRS would likely investigate and possibly pull JREF's tax exempt status. Rest assured the money is there [9].
Long answer, continued: The JREF prize seems to be held in a way that is similar to an endowment fund. Non-profits often create reserves of assets called endowments to build up enough money to take care of the organization in the case of bad financial times, or to save up money for a project down the road, like building a new facility or starting a large new program that would require a lot of capital. Endowment funds are held separately from the other money coming in and out of an organization. For example, The JREF prize money is being held separately from the general operating funds of the organization. This prevents JREF from accidentally spending the prize money on the light bill. It is never a good idea to just let large sums of money sit in a savings account for years and years, so most non-profits invest their endowment funds. The way they invest it is really not important. JREF invests in bonds which is fine. If they have to pay someone they will liquidate 1 million in bonds and pay the claimant. I know you are going to ask “What if the bonds cannot be easily liquidated?†Well, that would be incredibly stupid on JREF's part. No one would invest in illiquid assets if they knew they may need to get to the money quickly. If JREF did not pay a winning claimant in a reasonable amount of time they would be open to a law suit for breech of contract. Non-profits do not like getting involved in law suits so you can bet the assets can be easily liquefied. The claimant will be paid. JREF states that the funds are held in bonds so that a claimant can feel at ease about the ability of JREF to pay. That JREF will do so is going above and beyond the requirements of the law and the generally accepted practices of good responsible non-profits. It is an enormous act of good faith on JREF’s part [10].
3.2. That’s interesting evidence, but I still don’t believe that the money exists.
It's important to realize that if at this point you still doubt that the money exists, your doubt is in the entire American bond system in general and Goldman Sachs specifically, and not with the JREF. There is really not any more evidence the JREF can provide you. For concerns regarding Goldman Sachs, please inquire at their Web site, http://www.gs.com/.
3.3. If someone wins, how will they be paid?
Although the prize money is held in bonds as a way to publicly show that the money really does exist, the bonds will be converted to US dollars before being paid. The first $10,000 of the prize money will be paid by check, as stated in the Challenge rules. The usual method for paying an amount as large as the remaining $990,000 is via electronic transfer, and it is reasonable to assume that that is how this prize money will be paid as well.
4.1. How do I apply?
Fill out the application form, get it notarized, and mail it in.
A JREF employee who goes by the name of KRAMER will handle the application process. Please don’t send it straight to Randi, as he will not handle it personally and so sending it to him will only delay the process.
It is important that the application form be filled out in good, grammatical English. The people at the JREF who will be going through the application process with you are only guaranteed to be fluent in English. The hardest part of the application process will be refining your claim, and so it is vital that both sides understand each other as clearly as possible.
4.2. What should I do before I apply?
Get ready for a grueling, stress-filled process. Remember that in this situation, you and the JREF are adversaries, and they are going to do everything they can possibly think of to make you back down or make you look foolish. Remember, it's not a contest, it's a challenge. This isn't going to be like taking a test. This is going to be like going to court.
Make sure you are healthy. Get both a physical and mental check-up. Many people who claim to have paranormal powers are, sadly, under an advanced state of delusion instead. That isn't to say that you are, but it's a hypothesis which will come up during the application process. So be prepared for it in advance.
This next step is very important, because it will be the first big hurdle you will face:
Tell your physician and/or psychiatrist that you have a paranormal ability and that you plan on demonstrating your paranormal ability in front of numerous skeptics, and heed his advice.
The reason that this is a big hurdle is this: you should trust your physician/psychiatrist; he's on your side, after all. If you cannot convince him that applying for the Challenge is a good idea, you won't stand a chance against people you don't trust and who are not on your side.
After you are sure you are healthy and you have told your doctors about your intentions, make sure you can actually do the thing you will be claiming you can do in the application. If you know your ability is based on a trick or deception, stop right here and don't apply. Don't lie to yourself.
If you are sure you are not lying to yourself, find someone you know who is a reasonable, scientific sort and talk to him about your ability. Ask him to be as unfriendly and skeptical as possible. Then demonstrate it to him. This is the second big hurdle. If you can convince a brutally-honest friend that you can do something paranormal, then keep going. Otherwise, stop; you will have no chance convincing the JREF's testers.
Make sure you can reliably perform this ability. Make sure that standard things you would expect in the challenge, such as a room full of skeptics, or a physical object near or between you and the thing you want to affect, don’t affect your ability. If you can't read someone's mind when there's a skeptic nearby, or you can't see through a blindfold when there's a piece of cardboard between you and the object you are supposed to be able to see, then don't apply. These are just the sorts of things you will be subjected to during the test.
When you have done all these things:
- after you have talked to a doctor,
- after you have done a lot of soul-searching about your ability,
- after you have convinced a good friend who won't just nod and agree with everything you say, and
- after you are sure you can overcome any obstacle the testers could possibly throw at you:
then go ahead and fill out the application.
4.3. What should I expect during the application process?
You should expect a lot of (written) communication between yourself and the JREF. You should also expect to do a bit of traveling for the actual test, unless you happen to live in an area with an established skeptical group, which is uncommon.
4.4. How long does a typical application take to process?
This is a tough question, because there are not really any “typical applicationsâ€. An application made by an earnest applicant will take 1-6 months to handle, considering the refining of the application wording and the arranging of the testers for the preliminary test. Almost everything that has taken longer than that has turned out to come from an insincere applicant.
4.5. Why isn’t there a standard test for some standard paranormal claims, like ESP or psychokinesis?
In a nutshell, there's really no such thing as a “standard paranormal claimâ€. (Dowsing comes close, but testing dowsing takes an elaborate setup outside that has to be redone for every claimant anyway.) Even a test using Zener cards (the cards with wavy lines and stuff on them) isn't good for every person who believes he has ESP.
The Challenge is designed to test only what the applicant truly claims to be able to do. No two people claim to do exactly the same thing, so no two tests are going to follow the exact same process.
4.6. How much of my application is confidential?
Assume none of it is. If this bothers you, it is better that you do not apply.
4.7. Where can I find a list of all the people who have ever applied?
Since the Challenge has been going on since before the World Wide Web gained in popularity, no such list exists online. The JREF has limited resources, so most of the applications are actually just sitting in a file cabinet at the JREF headquarters in Florida. In other words, if you want a lot of details about the former applicants, you are going to have to go do your own research down at their headquarters.
5.1. What happens between my submitting the application and the preliminary test?
If all goes as expected, what happens at this point will be the hardest part of the process, and rightly so. This is where you and the JREF decide on the specifics of your test. Be prepared to take into account things you might not have thought of before.
For instance, maybe you can magically make monkeys fly out of your butt. On your application, that's what you write - “I can make monkeys fly out of my butt.†Once the JREF accepts your application, a number of things will have to be clarified.
- What kind of monkeys will fly out of your butt?
- How many?
- How long will it take?
- Where exactly will they appear to come out of?
So your simple nine-word sentence “I can make moneys fly out of my butt†will end up being the far more precise “I will produce between two and seven adult spider monkeys, weighing between three and five pounds each, over a period of not more than thirty minutes. These monkeys will appear from a region approximately six inches above my rectal opening, although there will not be a visible hole there.â€
Even after all of that, expect the testers to demand an X-ray of your midsection right before the monkey production, and for you to be weighed both before and after the monkey production to affirm that the monkeys did not come from your body weight.
5.2. What happens between the preliminary test and the official test?
Probably some more travel, and a news reporter or two on your doorstep. What you should expect, however, is for none of the agreed-upon documents to change. There will not be a renegotiation of your abilities or how they will be tested.
5.3. Why is the application process so difficult?
Well, it is for a million dollars, after all.
A lot of it has to do with the nature of previous applicants. The JREF, through much experience, has realized that most of the people who apply are either under the mistaken impression that they actually have a paranormal power, or under the mistaken impression that they can pull a fast one on the JREF and swindle them out of the prize money. While you may be neither mistaken nor a swindler, the JREF will always assume that you are one or the other. It's ugly and it's unfair, but that's how it is, and you need to prepare yourself for that reaction.
5.4. Who pays for my expenses, and why?
You do. It's spelled out in the Challenge rules. Remember that your position in the Challenge is that of defendant. But it’s also to realize that there is an important difference between this and a court of law: you are not innocent until proven guilty. Rather, you are normal until proven paranormal, and it is up to you to prove your paranormality. This means that you have to pay for travel, you have to pay to build any devices you want to demonstrate, and so forth.
5.5. Who pays for the JREF’s expenses, and why?
Again, you do, and again, it's spelled out in the Challenge rules. The reason is that the JREF doesn't see any reason for it to spend any money to help you defend yourself.
Footnotes:
[1] Randi, James. FLIM-FLAM!, chapter 13 beginning.
[2] Ibid.
[3] Ibid.
[4] The thread titled “Can we get a Challenge historical wrapup/tally?â€, http://www.randi.org/vbulletin/showthread.php?s=&threadid=52586. Look for Gr8wight’s first post.
[5] FLIM-FLAM!, chapter 13 beginning.
[6] The thread titled “Randi Gets Rude...â€, http://www.randi.org/vbulletin/showthread.php?s=&threadid=19874. Look for Randi’s two posts.
[7] Ibid.
[8] The thread titled “THE GOD THREADâ€, http://www.internationalskeptics.com/forums/showthread.php?s=&threadid=51642. See the first post in the thread, by KRAMER.
[9] The thread titled “$$$$$$$$$$$$$$$$$$$$$$$$$$$$$â€, http://www.randi.org/vbulletin/showthread.php?s=&threadid=52169. Look for Keri’s first post.
[10] Ibid.
