CA: Union-founded nonprofit spent zero on its charitable purpose in two years (SEIU, Tyrone Freeman)

LA Times ^ | 12/12/08 | Paul Pringle

[NormsRevenge]

A nonprofit organization founded by California's largest union local reported spending nothing on its charitable purpose -- to develop housing for low-income workers -- during at least two of the four years it has been operating, federal records show.

The charity, launched by a scandal-ridden Los Angeles chapter of the Service Employees International Union, had total expenses of about $165,000 for 2005 and 2006, and all of the money went to consulting fees, insurance costs and other overhead, according to its Internal Revenue Service filings.

Charity watchdogs say that nonprofits should never have zero program expenses in two successive years and that well-performing charities direct at least 70% of their annual spending to their charitable purpose.

"Of the 5,000-plus charities we've looked at, I don't think we've ever seen one that didn't spend anything on its charitable programs," said Sandra Miniutti, vice president of Charity Navigator, an online rating service.

Last year, the nonprofit reported spending $513,000 in connection with a Compton housing development, and $59,200 in consulting fees for its charitable programs, which together accounted for about 88% of its total outlays.

The primary mission of the charity -- the Long Term Care Housing Corp. -- is to provide affordable homes for the local's members, most of whom earn about $9 an hour caring for the elderly and infirm. But SEIU officials declined to discuss the charity, saying it is a separate legal entity from the union, even though its board is dominated by officials from the local. The charity is located at the local's headquarters.

Tyrone Freeman, then president of the 160,000-member United Long-Term Care Workers, helped start the charity in 2004. Freeman and the local are the subjects of a federal criminal probe and a congressional inquiry because of his spending practices. ...

[sportutegrl]

Is this the charity that was supposed to give a job to Ill Gov. Blogavich?

[NormsRevenge]

Records show no recent aid to two charities from union golf event

The SEIU local calls the annual tournament a fundraiser for the nonprofits, whose financial reports show no specific income from the event since 2004.

http://www.latimes.com/news/local/la-me-golf13-2008dec13,0,4391879.story?track=rss

[Bullish]

Hey Tyrone, how much of that money went to Ho’s, car rims and crack?

[NormsRevenge]

I believe it is,, the union has tentacles like
ACORN,, they are all over the place.,

[Psycho_Bunny]

These people are pure clowns. I watched them protest Group Health across the street from my apartment one day and I've got to say, they were the biggest bunch of mindless, prattling automatons I've ever seen.

I honestly don't know which was more existential an experience: seeing them or watching the Pride Parade a month or two later, a block over from my place.

Frankly, I think they're cut from the same clothe of simple-minded, self-important morons. They just have different agendas.

[KC Burke]

Bump

[Grampa Dave]

Non profits are the quasilegal but really illegal big piggy banks with gold No Limit ATM cards for the elite in charge of the phoney non profit.

[Liz]

No wonder this is the union job Gov “Pay-Me” Blago set his greedy sights on....he figured on plundering the union and its members......without oversight.

[Publius6961]

In any other context, this would be clearly fraud.

No trial necessary.

Jail time.