Doug Luffborough parted ways with the Turning the Hearts Center this past May. He was the executive director who signed tax forms.
The organization now holds board meetings.
Local Nonprofit Made Up Board
An organization that
evaluates charities across the United States said falsely listing the
board members was unethical and not consistent with good governance of
nonprofits
Wendy Fry
NBC 7
Jul 7, 2014
A South Bay nonprofit serving at-risk
youth falsely listed board members on documents with the Internal
Revenue Service, which two nonprofit experts say may raise questions
about the organization’s integrity.
Three of the people falsely listed as board members for the “Turning the Hearts Center” since 2010
said they had no knowledge they were documented on tax forms as being
involved with the organization. Some weren’t aware they were listed
until they were informed by NBC7.
“I think a decision was made to ask
people to be on the board and it never came to fruition,” said Sergio De
La Mora, the organization’s co-founder and board chairman.
The Chula Vista-based nonprofit provides parenting classes, food banks, graffiti removal and gang counseling.
De La Mora says he didn’t know, until
about mid-May, that several people were incorrectly listed as board
members on the organization’s IRS Form 990’s - documents meant to
provide transparency over how tax-exempt funds are managed.
“I sent (those people) a letter of
apology, explained to them that their names would be removed from any
literature or forms, of course the 990’s, that they would be changed and
rectified,” De La Mora said. “And since we’ve done so.”
The names, including NBC7’s Diana Guevara and the ACLU’s Norma Chavez, are listed in IRS forms dating back to 2010.
Guevara and Chavez both said they declined invitations to serve on the “Turning the Hearts Center” board.
“I was shocked, surprised and disappointed,” Chavez said.
Showing posts with label naughty non-profits. Show all posts
Showing posts with label naughty non-profits. Show all posts
Saturday, July 12, 2014
Organization led by CVESD trustee Doug Luffborough fabricated its list of board members
Attorney Richard Arroyo, listed as a
board member, said he agreed to serve on the board, about five years
ago, but he never realized that decision became official because he was
never asked to attend a board meeting or take a single vote.
“Well, I don’t know if it makes me
angry, it makes me question the administration and the integrity of the
organization, because if they’re going to do something like this, who
knows what they might be doing with the money, which is what I think is
more of a concern,” Arroyo said.
An organization that evaluates
charities across the United States said falsely listing the board
members was unethical and not consistent with good governance of
nonprofits.
“It’s deceptive and not at all transparent,” said Sandra Miniutti, the Vice-President and CFO of Charity Navigator.
Board members traditionally provide
oversight over how tax-exempt funds are spent; and how state and federal
grants are administered. In 2013, ‘Turning the Hearts’ received about
$561,000 in grants and contributions, according to their amended Form
990.
A spokeswoman for the San Diego
Workforce Partnership, which distributes federal grants to local
nonprofits, said Turning the Hearts Center received $346,456 in federal
Workforce Investment Act funds in 2013.
A nonprofit expert at University of
San Diego said the public should be concerned about issues like this
because all taxpayers support nonprofit organizations in that the funds
collected are tax-exempt.
“If the public loses confidence in
nonprofits, people will not volunteer their time or donate funds to a
wide variety of causes,” said Pat Libby, Director of the Institute for
Nonprofit Education and Research at University of San Diego.
De La Mora told NBC7 Investigates
that he was unaware of the improper paperwork because it was not his
role to sign the forms, but rather the job of the Executive Director
Doug Luffborough, who parted ways with the organization in about mid-May
2014.
“You entrust people to run an
organization and they do a wonderful job. It’s a growing organization – a
lot of details. I’m not part of every detail,” De La Mora said.
Luffborough, also a Chula Vista
Elementary School District trustee, briefly returned a phone call
request for an interview but said he could not answer any questions
about the organization because he was no longer involved in it. He
declined an on-camera interview about the discrepancy in the board
member’s names and stated he needed to consult with an attorney before
speaking further with NBC7.
According to the previous and the
corrected forms, Luffborough was paid $100,000 a year for his work as
Executive Director for “Turning the Hearts.” Chula Vista Elementary
School District spokesman Anthony Millican said Luffborough, as a CVESD
trustee, was not required to disclose his “Turning the Hearts” salary
because the nonprofit does not do business with the school district or
meet any other triggers that would require disclosure.
After NBC7 Investigates began asking questions about the board, De La Mora sent people previously listed on the 990’s amended copies of the IRS tax forms.
He also provided NBC7 a copy of those amended forms.
The only two people who were listed on both the original and the corrected IRS documents from 2010- 2012 are the cofounders De La Mora and Doug Luffborough. The amended forms also add two additional names to the charity’s list of board members for 2010-2013: Luffborough’s wife and De La Mora’s wife, for a total of four board members between 2010 – 2013, according to the amended forms.
Charity Navigator's Sandra Miniutti said it is not a good governance practice to run a nonprofit organization with less than five independent board members, and especially not when those board members are related.
“They would lose 15 points in our rating system right there for that and that is the most an organization can lose,” Miniutti said. In California, state law allows for nonprofits to run with only one board member.
IRS Form 990’s ask an organization to identify whether or not board members, officers, directors and trustees have a family or business relationship with each other. On each of the corrected forms, the organization indicates “no,” that none of the directors or trustees are related, despite the fact that the board was apparently comprised of two married couples.
NBC7 Investigates reached 3 of the 5 people listed on the original tax forms. A fourth person declined to comment, and messages left at a fifth person’s work place were not returned.
De La Mora said he realizes the falsely listed board members was a serious oversight and that’s why he acted so quickly to correct the forms as soon as he learned of the discrepancy.
He said his organization, which serves more than 17,000 people annually, is ready to move past this growing pain.
“I feel really confident that the community can drive by Turning the Hearts Center and say, ‘There is an organization that is not perfect, but they are willing to be perfected,’” De La Mora said.
Since NBC7 Investigates began examining the Turning the Hearts nonprofit, De La Mora says the organization has made many other changes, including instituting a conflict-of-interest policy, holding board meetings and keeping minutes of those board meetings, and having a board vote on the new executive director’s pay.
After NBC7 Investigates began asking questions about the board, De La Mora sent people previously listed on the 990’s amended copies of the IRS tax forms.
He also provided NBC7 a copy of those amended forms.
The only two people who were listed on both the original and the corrected IRS documents from 2010- 2012 are the cofounders De La Mora and Doug Luffborough. The amended forms also add two additional names to the charity’s list of board members for 2010-2013: Luffborough’s wife and De La Mora’s wife, for a total of four board members between 2010 – 2013, according to the amended forms.
Charity Navigator's Sandra Miniutti said it is not a good governance practice to run a nonprofit organization with less than five independent board members, and especially not when those board members are related.
“They would lose 15 points in our rating system right there for that and that is the most an organization can lose,” Miniutti said. In California, state law allows for nonprofits to run with only one board member.
IRS Form 990’s ask an organization to identify whether or not board members, officers, directors and trustees have a family or business relationship with each other. On each of the corrected forms, the organization indicates “no,” that none of the directors or trustees are related, despite the fact that the board was apparently comprised of two married couples.
NBC7 Investigates reached 3 of the 5 people listed on the original tax forms. A fourth person declined to comment, and messages left at a fifth person’s work place were not returned.
De La Mora said he realizes the falsely listed board members was a serious oversight and that’s why he acted so quickly to correct the forms as soon as he learned of the discrepancy.
He said his organization, which serves more than 17,000 people annually, is ready to move past this growing pain.
“I feel really confident that the community can drive by Turning the Hearts Center and say, ‘There is an organization that is not perfect, but they are willing to be perfected,’” De La Mora said.
Since NBC7 Investigates began examining the Turning the Hearts nonprofit, De La Mora says the organization has made many other changes, including instituting a conflict-of-interest policy, holding board meetings and keeping minutes of those board meetings, and having a board vote on the new executive director’s pay.
Friday, May 20, 2011
Nonprofit chairman billed Sweetwater taxpayers for his work
Nonprofit chairman billed Sweetwater taxpayers for his work
Head of scholarship foundation says board members aren’t supposed to be paid
By Wendy Fry and Ashly McGlone
SDUT
May 19, 2011
Charges to the district by public-relations consultant Scott Alevy involving his unpaid work as chairman of the Sweetwater Education Foundation:
June 23: Extensive discussion with Ed Lopez, Sweetwater Education Foundation, on potential and methods of community outreach using Compact for Success and foundation scholarships for more positive community and student perception: $187.50
June 24: Discussion with (district lawyer) Bonny Garcia on Compact/Foundation discussion and impacts of budget and issues on other districts in region: $125
June 30: Discussion with several district parents about perceptions of district, administration, curriculum, Compact for Success and facilities: $437.50
July 20: Discussion with Bonny Garcia on public perceptions, issues and potential for additional outreach with SDSU and the Compact for Success to highlight a more positive community and student perception: $187.50
July 24: Discussion with several current and former district teachers and administrators and parents about perceptions of district, including thoughts on the administration, curriculum, Compact for Success and facilities: $437.50
Oct. 12: Discussions with Ed Lopez/Sweetwater Education Foundation and Jeff Marston on scripting and issues for foundation dinner. Discussion with Juan Garcia/Chevron about district issues and support for projects: $250
Oct. 20: Sweetwater Education Foundation annual dinner. Discussions with district leadership and board plus educators and business leaders about district issues. Public presentation to 300 as chair of event: $750
Jan. 31: Lunch meeting with Ed Lopez, Executive Director of the Sweetwater Education foundation. Discussed Compact for Success scholarship levels, responses from contacts for funding on perceptions of the district and strategic input: $375
Total: $2,750
Source: Alevy’s invoices
Previously
Sweetwater P.R. bills don’t match memories
Sweetwater president seeks P.R. audit
Sweetwater hires former U.S. attorney for probe
Two golfers offer views on P.R. contract
Journalism that upholds the public trust, regularly
SEND TIPS
Call 619-293-2275. Fax 619-260-5094.
E-mail watchdog@uniontrib.com.
Follow on Twitter @sdutWatchdog
Visit on Facebook
Back to Watchdog index
LATEST POSTS
* Nonprofit chairman billed Sweetwater taxpayers for his work
* Sweetwater hires former U.S. attorney for probe
* Company Issa founded underpaid tariffs
* Schools miss out on field fees, report says
* Savings on sea urchin committee may be elusive
CHULA VISTA — When 300 people attended the fifth annual Sweetwater Education Foundation gala in October at the San Diego Hilton Bayfront, they ate a steak dinner and heard a performance by Bonita Vista High’s show choir.
The host was Scott Alevy, a former Chula Vista councilman who serves as chairman of the foundation.
What most people in attendance didn’t know was this: While they each paid $250 to attend in support of scholarships, Alevy charged the school district for his attendance. The bill? $750 (plus $18.70 for mileage).
Alevy is a public-relations person for the Sweetwater Union High School District’s contracted law firm, but that role was not well-known. Although his hourly rate of $250 is paid by district taxpayers, the arrangement was not approved at a public school board meeting.
The stated purpose of his P.R. work is to support labor negotiations, which is not part of the mission of the nonprofit foundation he chairs.
When Alevy was originally interviewed April 11 about his P.R. work, he said, “This doesn’t have anything to do with my work on the Sweetwater Education Foundation. My work for the district is completely separate.”
The Watchdog has since obtained documents showing the foundation work on his district invoices. Alevy billed the district for six line items involving foundation issues and discussions, totaling $2,750...
Head of scholarship foundation says board members aren’t supposed to be paid
By Wendy Fry and Ashly McGlone
SDUT
May 19, 2011
Charges to the district by public-relations consultant Scott Alevy involving his unpaid work as chairman of the Sweetwater Education Foundation:
June 23: Extensive discussion with Ed Lopez, Sweetwater Education Foundation, on potential and methods of community outreach using Compact for Success and foundation scholarships for more positive community and student perception: $187.50
June 24: Discussion with (district lawyer) Bonny Garcia on Compact/Foundation discussion and impacts of budget and issues on other districts in region: $125
June 30: Discussion with several district parents about perceptions of district, administration, curriculum, Compact for Success and facilities: $437.50
July 20: Discussion with Bonny Garcia on public perceptions, issues and potential for additional outreach with SDSU and the Compact for Success to highlight a more positive community and student perception: $187.50
July 24: Discussion with several current and former district teachers and administrators and parents about perceptions of district, including thoughts on the administration, curriculum, Compact for Success and facilities: $437.50
Oct. 12: Discussions with Ed Lopez/Sweetwater Education Foundation and Jeff Marston on scripting and issues for foundation dinner. Discussion with Juan Garcia/Chevron about district issues and support for projects: $250
Oct. 20: Sweetwater Education Foundation annual dinner. Discussions with district leadership and board plus educators and business leaders about district issues. Public presentation to 300 as chair of event: $750
Jan. 31: Lunch meeting with Ed Lopez, Executive Director of the Sweetwater Education foundation. Discussed Compact for Success scholarship levels, responses from contacts for funding on perceptions of the district and strategic input: $375
Total: $2,750
Source: Alevy’s invoices
Previously
Sweetwater P.R. bills don’t match memories
Sweetwater president seeks P.R. audit
Sweetwater hires former U.S. attorney for probe
Two golfers offer views on P.R. contract
Journalism that upholds the public trust, regularly
SEND TIPS
Call 619-293-2275. Fax 619-260-5094.
E-mail watchdog@uniontrib.com.
Follow on Twitter @sdutWatchdog
Visit on Facebook
Back to Watchdog index
LATEST POSTS
* Nonprofit chairman billed Sweetwater taxpayers for his work
* Sweetwater hires former U.S. attorney for probe
* Company Issa founded underpaid tariffs
* Schools miss out on field fees, report says
* Savings on sea urchin committee may be elusive
CHULA VISTA — When 300 people attended the fifth annual Sweetwater Education Foundation gala in October at the San Diego Hilton Bayfront, they ate a steak dinner and heard a performance by Bonita Vista High’s show choir.
The host was Scott Alevy, a former Chula Vista councilman who serves as chairman of the foundation.
What most people in attendance didn’t know was this: While they each paid $250 to attend in support of scholarships, Alevy charged the school district for his attendance. The bill? $750 (plus $18.70 for mileage).
Alevy is a public-relations person for the Sweetwater Union High School District’s contracted law firm, but that role was not well-known. Although his hourly rate of $250 is paid by district taxpayers, the arrangement was not approved at a public school board meeting.
The stated purpose of his P.R. work is to support labor negotiations, which is not part of the mission of the nonprofit foundation he chairs.
When Alevy was originally interviewed April 11 about his P.R. work, he said, “This doesn’t have anything to do with my work on the Sweetwater Education Foundation. My work for the district is completely separate.”
The Watchdog has since obtained documents showing the foundation work on his district invoices. Alevy billed the district for six line items involving foundation issues and discussions, totaling $2,750...
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