Wednesday, December 27, 2006

Charities Probe Closed

This case reminds us of the importance of providing detailed information, on an organization’s website, as we do in our annual report, of the organization’s financial statement and, a link to the income tax return if raising more than $25,000 and required to file a return.

It protects the organization and the public who after all, provide the funding to support the good work of nonprofit organizations.

UFW charities probe is closed
Attorney general says dealings had appearance of impropriety, but no laws were broken.
By Judy Lin - Bee Capitol Bureau
Published 12:00 am PST Wednesday, December 27, 2006

Attorney General Bill Lockyer announced Tuesday that he has closed an investigation of charities related to the United Farm Workers of America after finding the organizations broke no laws.

The state, however, recommended the nonprofits make changes to avoid future appearances of impropriety.

Lockyer's office launched a probe into UFW-related nonprofits after the Los Angeles Times published a series of articles in January raising allegations of misuse and waste of charitable assets by UFW insiders.

The Times reported that the union's philanthropies enriched one another, soliciting money on behalf of each other and steering business, such as loans and radio airtime, to other UFW-related organizations. The stories said many key UFW members served on the boards of these charitable organizations.

"We found no basis to any of the allegations that we investigated under our charitable trust enforcement authority," Lockyer said in a prepared statement Tuesday.

"While we concluded none of the questioned transactions violated the law, the appearance of impropriety existed."