Wednesday, June 26, 2024
Studies in Possible Governance Failures: America's Future Inc. and Project Veritas
Recent news stories document in detail possible governance failures at two 501(c)(3) nonprofit organizations. One is America's Future Inc., now associated with retired general Michael Flynn. The other is Project Veritas, founded by James O'Keefe and led by him until he was forced to resign by its board.
The N.Y. Times reports that America's Future Inc. had been founded in the 1940s but was largely dormant in recent years. That changed in 2021, when its entire board resigned and Flynn became chairman of the organization, that then had approximately $3 million in assets. It is unclear what led to mass resignation, or how the board decided this change was in the charity's interest. In the wake of this governance transformation, the group began compensating not only Flynn as its chairman ($40,000 in 2021, increased to $60,000 in 2022) but also his brother as its Treasurer ($50,00 in 2021), his sister as its executive director ($148,000), and his sister-in-law for various services ($1,050).
Rolling Stone reports on the history of Project Veritas. The alleged improper transactions that eventually led to organization's board forcing out its founder have been detailed previously in this space and in numerous news reports. But the Rolling Stone article provides an in-depth consideration of the group's rise and fall, including how the founder maintained control for as long as he did.
Lloyd Mayer
https://lawprofessors.typepad.com/nonprofit/2024/06/studies-in-alleged-governance-failures-americas-future-inc-and-project-veritas.html