Elected Officials: Perhaps Not the Best Founders for A Non-Profit

With the many recent investigations and court cases relating to fraudulent non-profits and electedofficials, perhaps it is time to legislate to prevent those in control of tax-payerdollars from starting tax-exempt organizations. This was Glyn Vincent’s suggestion in response to a recent incident inNew York involving Councilman Miguel Martinez pleading guilty to three federalcharges of kick-backs and an additional charge of stealing $40,000 from a now shuttered non-profit,the Upper Manhattan Council Assisting Neighbors. 

In hisarticle, Vincent reports having spoken with his Councilwoman, Gale A. Brewer, priorto her learning Martinez pled guilty.  Brewer indicated that she didn’t think there was anything wrong with a Councilman having a sisteron the board of a non-profit, but added that Martinez had clearly acted illegallyin siphoning off funds.  In discussingwhat has been dubbed the slush-fund scandal, she said there are plenty of rulesand regulations governing Councilmens’ ethical parameters that are wellunderstood and easy to obey.  Simply put, you alwayshave to declare what you’re getting and giving.

Despite the slushfund scandal and the ongoing investigation into the relationship between multipleofficials and non-profits, Brewer did not think the Council needed moreoversight or regulation.  Recentlyenacted Council ethical guidelines regulate even small gifts given by neighborhoodgroups and lobbyists.  Brewer mentioned, however, that perhaps elected officials should not organize or start new non-profits while they are in office.

Vincent, commenting on the wisdom of Brewer’s proposition, suggested that it should be the law.  Given that the numberof cases of elected officials tied to fraudulent non-profits is rising, it maynot be long before a bill creating such restrictions materializes.  

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