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Follow the Money?
posted at 2007-04-05 23:45 | Last modified 2007-11-14 10:38
Three unrelated sources told me today they've heard the Legislative Black Caucus's Scholarship fund may be missing some money -- we're talking adult money, as much as 200K, by some accounts -- and that LBC chair Alma Adams has ordered an audit to figure out where it went.
Adams: "It's a rumor"
When I spoke to Adams today, she confirmed she has asked for an audit,
but says it's just a matter of "sound business practice." When
pressed, she said she didn't know whether that's standard operating
practice for the LBC, since this is her first year as chair. But Adams
says the missing money story is only a rumor, as far as she knows. She says she's heard
nothing about it from any member of the caucus, or anyone else.
Former chair Beverly Earle also said today she doesn't know anything about any
missing money, either, though she too had apparently heard about the rumor.
Here's the tough part: the Foundation is a private 501c nonprofit, so
they aren't technically required to divulge who gave what - or where it went - unless the
Caucus decides to open its books.
How it works
The Legislative Black Caucus collects money from corporate donors for
its scholarship fund, which is then handed out to Historically Black
Colleges and Universities. In 2004, it handed out 11 scholarships worth 7K each.
But $77,000 in scholarships made up less than half of the Foundation's 2004 annual operating expenses of $176,000. The rest?
$22,000 for printing and publications.
$38,000 for conferences and conventions.
$27,000 for its own annual conference.
$6,000 for travel.
$4,300 for postage
For more details, you can read its 2004 tax records here.
What's the problem?
Open-government advocates don't like private foundations, because they can be used for influence peddling under the radar of campaign finance and lobbying disclosure requirements. Politicians don't have to report the
contributions, since they weren't campaign donations. And the
corporations even get a tax break in the bargain: donations to these foundations are tax-deductible, while
PAC donations are not.
Who gave?
Lobbyists and other lawmakers say they have first-hand knowledge that LBC members have asked
special-interest groups (payday lending is one name that's come up) for
contributions to the Scholarship Fund. Even if those donations didn't
influence legislators' positions on certain issues, it's fair to say
the groups may have thought they were gaining an edge by writing a
check.
Is that legal?
A lot of folks on Jones St. say they've wondered about that. Adams says she's referred the matter to the State Ethics Commission. She says the Foundation is in a holding pattern till they find out whether they can continue to operate under the new ethics laws.
Comments? Drop me a line.
