Posted on 05/30/2018 4:29:25 AM PDT by reaganaut1
A mutual-fund manager earned nearly $5 million over eight years from a lucrative side gig. He was trustee of his business partner’s private charitable foundation.
Another charitable foundation, set up by a carpet merchant, has millions of dollars in loans outstanding to the man’s carpet company.
A third paid out more to companies owned by the foundation president’s family than it gave to charity in a recent year.
All these transactions were lawful, the foundations said in their tax filings.
A half-century ago, Congress, troubled by tales of foundation self-dealing, enacted a law to prevent insiders from taking advantage of their positions. The law prohibits most business between private foundations and their insiders—meaning their officers, directors and substantial donors. It says foundations may not engage in property deals, loans or the exchange of other goods and services with insiders.
Some foundations have grown adept at relying on a bevy of complex exemptions to their advantage. More than 1,800 foundations checked boxes on their fiscal 2016 tax filings indicating that they engaged in business activities with insiders but weren’t violating the self-dealing law, The Wall Street Journal found in a review of thousands of filings.
The law permits foundations to employ insiders for certain services provided they aren’t paid excessive compensation, which would be considered self-dealing. About 10,000 private foundations checked boxes on their fiscal 2016 returns indicating they legally compensated insiders.
It’s impossible to determine from tax data how many of the exemption claims were clearly justifiable, or whether some might stretch the definitions.
Even if legally defensible, transactions between foundations and insiders may violate the spirit of the law, said William Josephson, a former charities regulator in New York. Charitable-foundation assets are there for “serving a public purpose, and compensating you is not a public purpose,” he said.
(Excerpt) Read more at wsj.com ...
The Clinton Foundation helped Haiti by inspiring the homeless and starving folk there with pics of Chelsea’s grand wedding.
Time to google Charles Ortell and the 70+ videos online with Jason Goodman and Crowd Source the Truth.
Clinton is the mega-problem.
My goodness. I hope someone told Bent Bill and Old Hill about the laws involved with running a faux foundation. I’m sure they want to follow all rules and regulations to the tee.
Look at this 1, Televangelist lives like a king, wants 4th Jet http://www.philly.com/philly/news/nation_world/jesse-duplantis-televangelist-private-jet-falcon-7x-20180529.html
This has been SOP for most of the big faux charities, if they are run by liberals.
Thanks for posting this.
Liz and I have been warning and posting about the dangers of liberal controlled/run Faux Charities for over a decade.
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