This article by Steve Thompson today appeared in the Washington Post:
For years, Maya Rockeymoore Cummings ran a charity so closely intertwined with her for-profit consulting firm that they shared the same employees, the same office space and the same director — her.
The private firm carried out the charity’s mission of promoting public health and addressing racial and economic inequity under a cost-sharing agreement that gave the firm a 5 percent management fee. Rockeymoore Cummings signed a contract on behalf of both parties to set up the unusual relationship.
She disclosed the arrangement to the Internal Revenue Service initially, but in subsequent years she checked “no” on 990 tax forms asking whether the charity did business with any entities owned by its director. A “yes” answer would have required her to provide more financial details. Lawyers who specialize in nonprofits say that’s to allow scrutiny by both the … Read More ➡