Southern Poverty Law Center ($PLC) Handling Its Loot Even More Strangely
H/T Pic The Dustin Inman Society
Back in 2009 I pointed out in Good News: SPLC loses $50 Million. Bad news: $PLC can afford it that the Southern Poverty Law Center was investing a substantial proportion of its astonishingly large pool of financial assets not in low-risk instruments as one might expect but in aggressive and illiquid partnerships and Hedge Funds.
In 2010 in Will The Southern Poverty Law (And Investing) Center Return Its Madoff Money? I noted the process had gone further and that furthermore it had acquired a bank account in the Cayman Islands.
Why a tax exempt entity like the $PLC needs a bank relationship in a tax haven is a mystery. Even quite small Hedge Funds groups have on- and offshore funds with the same strategy: any suggestion that it was necessary to go offshore for a particular management style is implausible.
In 2011 in Is The Southern Poverty Law Center ($PLC) The Next Financial Bubble? I followed up by noting the Center had made its liquid resources
…illiquid and non-transparent, by moving them into “alternative investments”—investment partnerships of various types. In 2009 75.4% of the investment portfolio was so deployed, up from 49% in 2008—by 2010 the proportion was up to 87% —i.e. substantially all of it.
The Cayman Islands account remained.
Despite much pressure from Peter Brimelow I have not followed up on these studies. It is just a bore documenting how much richer an enemy has become.
But now along comes Joe Schoffstall in the Washington Free Beacon who has done valuable further digging: Southern Poverty Law Center Transfers Millions in Cash to Offshore Entities August 31, 2017
The SPLC has turned into a fundraising powerhouse, recording more than $50 million in contributions and $328 million in net assets on its 2015 Form 990, the most recently available tax form from the nonprofit. SPLC’s Form 990-T, its business income tax return, from the same year shows that they have “financial interests” in the Cayman Islands, British Virgin Islands, and Bermuda…
The SPLC’s Form 8865, a Return of U.S. Persons With Respect to Certain Foreign Partnerships, from 2014 shows that the nonprofit transferred hundreds of thousands to an account located in the Cayman Islands
(Actually the amount transferred overseas is in the millions. Read the article.)
Schoffstall also harvested some Money quotes:
I’ve never known a US-based nonprofit dealing in human rights or social services to have any foreign bank accounts,” said Amy Sterling Casil, CEO of Pacific Human Capital, a California-based nonprofit consulting firm… I am stunned to learn of transfers of millions to offshore bank accounts. It is a huge red flag and would have been completely unacceptable to any wealthy, responsible, experienced board member who was committed to a charitable mission who I ever worked with.”
“It is unethical for any US-based charity to invest large sums of money overseas,” said Casil. “I know of no legitimate reason for any US-based nonprofit to put money in overseas, unregulated bank accounts.”
I am confident that VDARE.com was the first to draw attention to the $PLC’s tax haven account, and indeed to their bizarre investment strategy overall. The $PLC is in effect a modest public interest law firm and fundraising operation, linked to a very large, wildly aggressive investment pool.
There have been numerous references to the Cayman Islands account, including by aggrieved and starving Progressive tax-exempts. (The $PLC never helps other Foundations.) Not one has ever mentioned VDARE.com. Just how valuable the MSM taboo on VDARE.com references is to the racketeers of the Left is demonstrated by the pathetic ignorance of Amy Casil, supposedly a professional in the area:
My impression based on prior interactions is that they have a small, modestly paid staff, and were regarded by most in the industry as frugal and reliable.