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Non-profits investigated over loans to employees

Jack42
Broadway Star
joined:9/9/03
Broadway Star
joined:
9/9/03
From AM-NY:

The charity money-go-round may grind to a halt. amNewYork has learned that the state Attorney General’s office is investigating at least 150 non-profit foundations that may have given loans to their officers and key employees, in violation of state law.

Included among them are:
•Actors Theatre Workshop ($27,400 loan to Kathleen DeFouw and
$26,586 loan to Scott Thurman)

•Philharmonic Symphony Society of New York

•New York City Ballet ($200,000 cash loan on June 27, 2002 to Ballet Master-in-Chief Peter Martins and principal dancer Darci Kistler)

Here's a link to the story - front page - and continues on page 4. You have to have acrobat reader to see it.
Non-profit investigation
The two most common elements in the universe are hydrogen and stupidity -- Harlan Ellison.
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Craig
Broadway Legend
joined:5/20/03
Broadway Legend
joined:
5/20/03
Looks like non-profits are under the gun this week in general. Just caught this article linked on our site...


Backstage Article
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Menken Fan
Broadway Star
joined:6/2/03
Broadway Star
joined:
6/2/03
Loans to officers, employees and board members of not-for-profits are a huge no-no these days. The states and the public don't like when you use charitable funds to provide low or no-interest loans to insiders.

I do financial and operational consulting for not-for-profit organizaions, and the rules that Eliot Spitzer is proposing in NY are sure to be enacted in some form and spread to other states. Theaters are sure to feel the impact in the next year or two.