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A group of Republican senators (including Chuck Grassley) want Boys & Girls Clubs of America executives to answer for such egregious non-profit sins as high executive salaries, fat retirement plans, and lobbying expenses. You see, Chuck Grassley is a sharp guy (wild statements about executive suicide notwithstanding) and as ranking member of the Senate Finance Committee, he’s the one keeping an eye on the sort of action non-profits get from Congress. So when an $85 million a year initiative to provide blanket funding to the non-profit group slipped by the committee, the red flags went up.
Iowa’s Grassley is joined by Tom Coburn, R-OK; Jon Kyl , R.-AZ.; and John Cornyn, R-TX in questioning a multitude of sins including CEO Roxanne Spillett’s $1 million a year compensation package, half a million dollars a year in lobbying and $4.3 million in “travel expenses.” Not really a problem if the funds are unrestricted and coming from donors who know their donations may go to, say, trips and renting a Senator here and there. Nah. After reviewing the org’s 2008 tax return, the senators concluded that 40% of Boys and Girls Club funding comes from the federal government.
The new Senate bill, S.2924, changes the original intent of a 1998 bill that granted $20 million a year to provide “seed money” for 1,000 new Boys & Girls Clubs from 1997 – 2001. Grassley argues that this new legislation essentially turns money that should go to keeping low income at-risk youth off the streets, into a vague piggy bank for the organization. Naturally, Chuck & Co. have a problem with that.
The Boys & Girls Clubs of America posted a $13 million loss in 2008. In 2009, it cut 10% of its full-time workers, instituted 26 furlough days a year, and closed chapters in DC, Florida, Georgia, Virginia, and others.
Though the organization hasn’t had time to personally respond to Grassley’s nice letter last Thursday, they told the Journal they’d be complying with the investigation and not at all afraid of what the committee may find, insisting they are no more poorly-managed than any other non-profit nor do they spend more on lobbying than anyone else either.
Sounds like an excellent defense; I don’t see how it could go wrong.
Senators Demand Accounting from Boys & Girls Clubs [WebCPA]
Sens Try To Block Funding To Boys & Girls Clubs of America [WSJ]