Saturday, December 15, 2007

IRS Revokes Exemption - 3 Years After AG Dissolves Charity

Although the wheels of justice may grind slowly, sometimes justice does prevail.  In 2004 the California Attorney General discovered that money from the San Francisco Neighbors Resource Center was being used for a political campaign.  The charity had received a state grant of $492, 500 in 2001 to build a community center.  The SRFRC never built the center and instead funneled significant amounts of money to the campaign of California Secretary of State Kevin Shelley.  The AG determined that various amounts had been paid to several different people for "project management," consultant services," and "development fees."  The people who received the money had performed no services and within a short time before or after receiving the money, made donations in comparable amounts to Shelley's campaign.  After the AG began to investigate, the board agreed to dissolve, but even then the AG needed to push the board.  That push happened in 2004 (see petition by AG for court supervision of winding up and dissolution of SFNRC).  The IRS finally announced its revocation of the organizations's exempt status on November 30, 2007 (reported by Peter Panepento writing in Philanthropy.com).

sng

http://lawprofessors.typepad.com/nonprofit/2007/12/irs-revokes-exe.html

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Comments

just another example of the collusion and coruption that exists in the us gov. today.

Posted by: va | Feb 10, 2008 1:54:36 PM

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