justinmclachlan.com/08/46/california-family-council-money -> justinmclachlan.com/08/46/california-family-council-money/
California Family Council's charitable mission, instead, most of it went into the pockets of the organization's employees. But, according to its federal tax returns, little more than $500,000 of that money has gone to "program services," or expenses directly related to that charitable work. The CFC's other employees earned a total of $900,000 in compensation -- bringing the total spent on employees at the Council to about $2 million since it began in 2003.
Better Business Bureau's Wise Giving Alliance say at least 65 percent of a tax-exempt organization's expenses, or most of the money it spends, should go to program services. The CFC's tax returns, however, show the opposite: the Council's employees have received about 70 percent of the money the organization has spent over the last four years and only about 18 percent has gone to program services.
William Crookston, an expert in business management and nonprofit organizations at USC, said in an email. He noted that the six figure salaries that Mr Prentice and Mr Henderson draw are high for the amount of money the CFC has received, particularly for an organization that's just a few years old.
At the CFC, he now earns an average of $60,000 to $70,000 more than his former bosses at Focus -- an organization that received $144 million in donations in 2007.
In the article, he warns that "n organization that engages in an inurement transaction (such as paying an unreasonable compensation to an insider) may face revocation of its exempt status" and that nonprofits have to show that they are working to benefit public interests, not private ones. Mr Prentice didn't respond to questions about the CFC's finances nor did he acknowledge a request for the organization's audited financial statements. Questions about the organization's governing board, which appears from its tax returns to be made up of only Mr Prentice and Mr Henderson, also went unanswered.
Evangelical Council for Financial Accountability say a tax-exempt organization's governing board should be comprised mostly of unpaid volunteers to avoid a conflict of interest. And though tax-exempt organizations are required to disclose the names of their board members to the public even if they aren't paid, the CFC only lists Mr Prentice and sometimes Mr Henderson, its highest paid employees, in the sections for officers, directors and trustees on its tax returns. Again, questions about the makeup of the CFC's governing board went unanswered, but if its tax returns are accurate and complete, that would place Mr Prentice and Mr Henderson in complete control of the CFC, indicating that they likely set their own, six-figure salaries.
com is a ballot measure committee supporting proposition 8, a constitutional amendment that would take away the right of gay and lesbian couples to marry in California.
Andrew Pugno, California Renewal's attorney, said he doesn't feel clearing the suspension is a high priority and insisted that California Renewal is tax exempt and doesn't owe the state any money. "I hope you understand I am extremely busy and don't have much time to deal with this other than wait for the (franchise tax board) to contact me to let me know if anything else is required to revive," Pugno said in an email. He also promised to provide documentation of California Renewal's tax exempt status, but failed to do so.
the California Family Alliance, another nonprofit run by Ron Prentice that has also been suspended. According to the Secretary of State's office, the California Family Alliance, formerly known as the Committee on Moral Concerns and listed on the CFC's tax returns as an asset worth about $20,000, failed to file an annual information return for tax exempt organizations. Mr Pugno said he doesn't know what the California Family Alliance does but that all required forms have since been filed with the secretary of state. He blamed the suspension on a clerical error and a mix-up with the Post Office that he says has now been corrected. The secretary of state's office, said however, that if the proper forms were filed the suspension would've been lifted immediately. com, raising legal questions that experts don't have answers to. "There's nothing within the political reform act that would address that issue," Roman Porter, executive director of the Fair Political Practices Commission, said. Still, even though state law is silent on the issue, Daniel Lowenstein, a UCLA law professor who helped write the political reform act and was the first chairman of the FPPC, said he didn't believe the state could stop an organization like California Renewal from running a ballot measure committee--even if its corporate rights and powers have been suspended. You've got a committee being sponsored by a business that's involved in what amounts to a pretty shady situation, not paying its taxes." Mr Pugno said they believe they've done everything they're supposed to to keep Mr Prentice's nonprofits compliant with the law, but, again, doesn't think the supensions are a high priority. The state sees things differently, though, according to John Barrett, a spokesman for the tax board. "Their number one job right now should be setting things right with the state of California," he said.
Reply Sadly, this kind of stuff will be allowed to continue and the Christian conservatives who support Prentice and his anti-gay life's work won't care. I'm amazed, though, to see a blogger do such thorough, professional work.
Reply I have to say that this is one of the most thorough, detailed and well researched blog posts I've ever seen. I also have to say that the IRS and the CA Attorney general should be investigating this.
California Family Council spends most of the public's contributions on employees, not programs The money was supposed to go to support the California Family Council's charitable mission, instead, most of it went into the pockets of the organization's...
California Family Council spends most of the public's contributions on employees, not programs * I'm not supposed to have an opinion (and I don't) but your Web site made even me laugh.
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