Grassley, Baucus Expand Charities Review to Statue of Liberty Foundation
WASHINGTON – Sen. Chuck Grassley, chairman of the Committee on Finance, and Sen. Max Baucus, ranking member, today expanded their ongoing review of charities’ governance to include the Statue of Liberty-Ellis Island Foundation. Their action came after media reports described the lack of movement from the foundation and the National Park Service to improve the statue and offer adequate public access after the Sept. 11, 2001, tragedy.
“For months, the Finance Committee has been reviewing the financial practices andaccountability to donors of charities and private foundations,” Grassley said. “We’ve seen a patternof these groups sitting on huge endowments, paying executives six-figure salaries, and spendingrelative pennies on their stated missions. Some of these foundations seem to exist only to perpetuatethemselves. Unfortunately, it looks like the Statue of Liberty-Ellis Island Foundation might be inthat category.
“Emma Lazarus wrote that the statue lifts her lamp beside the golden door to America. Thesefoundation executives seem to have blown out the lamp and created a golden opportunity for theirown career perpetuity. To be fair, the National Park Service isn’t blameless here. The agency mighthave given too much control of a prized national asset to a private foundation. We need to figureout the relationship between the federal agency and the private foundation so this kind of standstilldoesn’t happen again. While the agency and foundation waste time, millions of Americans andaspiring Americans are denied decent access to our greatest beacon of freedom.”
Baucus said, “The Statue of Liberty is a defining landmark of freedom to all who visit NewYork, just as the Capitol and Washington Monument are landmarks to democracy in Washington,D.C. Both the Capitol and Washington Monument, as well as a number of other monuments, havebeen reopened since September 11, 2001, with additional security precautions in place.
“But the Statue of Liberty has not. I'm very concerned by reports that are surfacing that itwas the Foundations fiscal mismanagement, rather than overarching security concerns, that havecaused the delay. I’m further concerned that the National Park Service did not step forward and askCongress for help once it became apparent to them that the Foundation was failing its mission. If wefind that the reports of the Foundation turn out to be true, serious action will need to be takenregarding private entities having virtual control over the public’s property.”
The senators are working to advance reforms of vehicle and intellectual property donationsthrough their foreign sales corporation/extraterritorial income act bill, which is pending before thefull Senate. They plan to develop additional legislative reform proposals on charitable giving andaccountability as needed.
The text of the senators’ letters today to the Statue of Liberty-Ellis Island Foundation Inc.,Interior Secretary Gale Norton, and Interior Department Inspector General Earl Devaney follow.
April 5, 2004
Mr. William May, Chairman
Statue of Liberty Ellis-Island Foundation Inc
292 Madison Ave. 14
New York NY 10017
Dear Mr. May:
We are writing to you regarding the Statue of Liberty-Ellis Island Foundation (the“Foundation”). The Finance Committee has been engaged in an ongoing review of charitableorganizations. The news reports of the Statue of Liberty-Ellis Island Foundation (the “Foundation”)raise serious questions on a number of fronts, including whether the Foundation’s actions have beenin keeping with the letter and spirit of the tax law.
Our investigation into non-profit organizations has given particular focus to problems ofgovernance. In reading news accounts of the Foundation there are several issues that are raised aboutgovernance. To assist the Finance Committee in its oversight work, we ask that you provide thematerial below. Please provide a listing of all board members for the past five years. Please providecopies of all minutes of all board meetings (or any subset of the board) for the past five years. Pleaseprovide copies of all material provided to board members (or any subset of the board) for the pastfive years.
In responding to this request, we would ask that particular attention be paid to all boarddecisions regarding salaries and awarding of grants and contracts. Please explain in detail any solesource grants or contracts that were awarded valued at over $100,000. Please provide copies of anyopinions of attorneys that the Foundation has received in the last five years on any issue. Pleaseprovide a detailed accounting for all expenses, grants and contracts of the Foundation for the pastfive years.
Please provide copies of all Form 990s and any other material submitted to the InternalRevenue Service for the past five years. Please provide copies of all internal and external auditsperformed for the past five years. Please provide copies of all articles of incorporation, current andpast. Please provide the analysis and all material related to support the salaries of all individualsmaking over $100,000 for any of the past five years. Please also provide how the salaries areapproved, all material supporting the salaries and any other information that shows compliance withthe tax code in regards to salaries at a charitable organization.
Thank you for your time and assistance. We ask that this material be provided in thirty days.
Cordially yours,
Charles E. Grassley
Chairman
Max Baucus
Ranking Member
April 5, 2004
The Honorable Gale A. Norton
Secretary of the Interior
1849 C Street, N.W.
Washington, D.C. 20240
Dear Secretary Norton:
We are writing to you regarding the Statue of Liberty-Ellis Island Foundation (the“Foundation”). The Finance Committee has been engaged in an ongoing review of charitableorganizations. The news reports of the Statue of Liberty-Ellis Island Foundation (the “Foundation”)raise serious questions on a number of fronts, including whether the Foundation’s actions have beenin keeping with the letter and spirit of the tax law.
Our investigation into non-profit organizations has given particular focus to problems ofgovernance. In reading news accounts of the Foundation there are several issues that are raised aboutgovernance. It is our understanding that the Department of Interior in a series of Memorandums ofUnderstanding (MOUs) established a relationship with the Foundation and that the Department ofInterior has a significant role in the governance of the Foundation.
We would ask that you please provide a copy of all MOUs between the Foundation and theDepartment of Interior. Please provide copies of all correspondence between the Foundation and theDepartment of Interior for the past five years. In addition, please state who has been appointed orrecommended by the Department of Interior to serve on the Foundation’s board for the past fiveyears. Please detail the involvement of these individuals in terms of management of the Foundation,including attendance at meetings, copies of correspondence, all material provided to board members,etc.
Finally, we would ask whether you believe that the Foundation and its current managementhas been in the best interest of the taxpayer and is in keeping with the intent and spirit of the MOUand the organization’s charter.
Thank you for your time and assistance. We would ask for this material in thirty days.
Cordially yours,
Charles E. Grassley
Chairman
Max Baucus
Ranking Member
April 5, 2004
The Honorable Earl Devaney
Inspector General
Department of Interior
Washington, D.C.
Dear Mr. Devaney:
We are writing to you regarding the investigation by your office into the Statue of Liberty-Ellis Island Foundation.
The Finance Committee has been engaged in an ongoing review of charitable organizations.The news reports of the Statue of Liberty-Ellis Island Foundation (the “Foundation”) raise serious questions on a number of fronts, including whether the Foundation’s actions have been in keeping with the letter and spirit of the tax law.
We ask that you please keep the Finance Committee fully informed of the progress you are making in this investigation as well as a copy of the final report. Thank you for your time and assistance.
Cordially yours,
Charles E. Grassley
Chairman
Max Baucus
Ranking Member
-30-
Next Article Previous Article