In August, we told you about allegations of corruption against Tyrone Freeman, then head the largest Service Employees International Union (SEIU) affiliate in California. Over the weekend, the Los Angeles Times published new allegations against Freeman and his union.
In 2004, Freeman’s local launched what they called a "charity" to develop affordable housing for its members. The charity’s board is mostly comprised of union officials, and the charity shares office space with the union.
The problem? In at least two years of operation, the "charity" failed to spend a single cent on its charitable mission.
The charity, launched by a scandal-ridden Los Angeles chapter of the Service Employees International Union, had total expenses of about $165,000 for 2005 and 2006, and all of the money went to consulting fees, insurance costs and other overhead, according to its Internal Revenue Service filings.
Charity watchdogs say that nonprofits should never have zero program expenses in two successive years and that well-performing charities direct at least 70% of their annual spending to their charitable purpose.
"Of the 5,000-plus charities we’ve looked at, I don’t think we’ve ever seen one that didn’t spend anything on its charitable programs," said Sandra Miniutti, vice president of Charity Navigator, an online rating service.
Running a union-affiliated charity that doesn’t actually do any charity — sounds a bit like the kind of job Rob Blagojevich was asking the SEIU to set up for him.