The Redevelopment Agency’s two nonprofit arms, the Southeastern Economic Development Corp. and the Centre City Development Corp., have both failed to file their tax returns with the state Attorney General’s Office.
The AG’s Office sent CCDC officials this delinquency notice on July 1, warning them that they have to file the forms with the AG post-haste or risk getting a fine.
In the course of investigating SEDC’s clandestine system of bonuses and extra compensation, I called the AG’s office, which is responsible for overseeing nonprofits in California, in early June and asked a staff member to send me copies of SEDC’s Form 990s for the last few years.
The Form 990s are crucial documents because they list how much officials at an agency were actually paid over the course of a year. By comparing what the 990s say and what the agency’s budget says about the officials’ compensation, I was able to write this story about SEDC’s hidden bonuses and extra compensation.
On June 16, a staffer from the AG’s office sent me the Form 990s for SEDC for fiscal years 2003-2004, 2004-2005 and 2005-2006.
But now, as Union-Tribune just reported, the AG has sent SEDC a delinquency notice for not filing forms that someone at the AG’s office sent me a month ago. Weird.
Well, it turns out that the AG staffer got the Form 990s from GuideStar, a nonprofit research organization, then just forwarded them to me..
It’s important to note that both SEDC and CCDC did evidently file their tax returns with the Internal Revenue Service. They didn’t, however, apparently file the paperwork with the Attorney General’s Office, which regulates nonprofits statewide.
The letters state that the organizations could lose their tax-exempt status and their officials could be liable for additional penalties.