Where Most Needed

On Thursday, the Senate Indian Affairs Committee released a package of documents relating to the abuse of nonprofit organizations by Jack Abramoff to obscure the source of lobbying funds.  The Washington Post offers a feature story on Sunday that tells the story of how Mr. Abramoff worked with

• the National Center for Public Policy Research (EIN 52-1226614 Form 990), a 501(c)(3) organization run by Amy Ridenour and
• Americans for Tax Reform (EIN 52-1403587 Form 990), a 501(c)(4) civic organization run by Grover Norquist

The complete Senate documents are on the large side.  The committee report is 373 pages (about 1Mb), and the document package is 112 pages of scanned images (nearly 3Mb). 

The Form 990s provide some insight about how these organizations could be used as pass-throughs.  Americans for Tax Reform has a listed income of nearly $5 million (including $1 million in "contract services" income listed incorrectly as a "negative expense" item) and a staff of 16.  It lists just three directors, Mr. Norquist, Peter Balkin, and Karen Kerrigan.  Mr. Norquist is listed as "President/Treasurer" with a salary of $167,308 plus $25,000 in "retroactive pay."  No other officer is paid and the total "management and general" salaries (other than officers) are listed as $84,535.  So here is a $5 million operation with a three-person board, where the board president is the chief paid staff member and also writes the checks. 

NCPPR has income of $8.7 million, but a staff of just five. Practically its entire program expense is direct mail costs.  There are six directors, Ms. Ridnour ($165,428) as President, David Ridnour ($108,312) as Vice President, and four other unpaid directors, none listed as Treasurer.  In addition, David Almasi is listed without title at $72,001, but the organization's web site describes him as "Executive Director" with a degree in political science.  (I guess he directs the two other staff who apparently earn $50,000 between them.)  As with ATR, NCPPR has paid staff who are also the chief board executives, with no financial staff in sight. 

Without even rudimentary fiscal control in place for pretty substantial operations (for nonprofits), it is not surprising that these organizations could be diverted to purposes inconsistent with their mission. 

With the transmittal of these documents to the Senate Finance Committee (click on the image above), no doubt both organizations can expect to receive pointed letters from Sen. Charles Grassley critiquing their lax governance practices, similar the ones he has sent to American University and the Smithsonian.