Thursday, January 19, 2012

Another Nonprofit Scandal

The Los Angeles Times and many other news outlets are reporting that Ward Connerly, a former University of California regent who led efforts to end affirmative action in California and across the country, has been caught with his hand in a nonprofit cookie jar.  Connerly is a principal of the American Civil Rights Institute, a nonprofit that works to end affirmative action.  According to various reports, he has been drawing a salary of $1.3 million from the Institute, far more than similar officials at similar organizations.  (He says that the group reduced his pay to $850,000 after the 09-10 fiscal year.)  There are dark hints of additional improper financial behavior.  This would have been a relatively run-of-the-mill nonprofit scandal, perhaps good fodder for Nonprofit Law class discussions about fiduciary duties, private inurement, intermediate sanctions and the like, were it not for the juicy fact that whistle blower was none other than Jennifer Gratz, the named plaintiff in Gratz v. Bollinger, the case that struck down U. Michigan's diversity admissions plan.


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