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Why are the Southern Poverty Pimps funneling cash to offshore tax havens?

What is the Southern Poverty Law Center hiding?

Matthew Vadum author image / /   1 Comments

The awesome Joe Schoffstall has a fantastic exposé on the truly evil Southern Poverty Law Center.

Incidentally, I was the first (at least I think I was the first) to report on the existence of the SPLC’s bank accounts in Caribbean tax havens years back but I didn’t take it further. In any event, here is a link to a 2016 FrontPageMag article I wrote years later about the group.

Schoffstall, who told Tucker Carlson on his TV show tonight, “they make all their money from the hate industry,” took his investigation of the SPLC much, much, much further.

In his WFB piece he writes:

The Southern Poverty Law Center (SPLC), a liberal, Alabama-based 501(c)(3) tax-exempt charitable organization that has gained prominence on the left for its “hate group” designations, pushes millions of dollars to offshore entities as part of its business dealings, records show.

Additionally, the nonprofit pays lucrative six-figure salaries to its top directors and key employees while spending little on legal services despite its stated intent of “fighting hate and bigotry” using litigation, education, and other forms of advocacy.

The Southern Poverty Law Center is perhaps best known for its “hate map,” a collection of organizations the nonprofit deems “domestic hate groups” that lists mainstream conservative organizations alongside racist groups such as the Ku Klux Klan and is often referenced in the media. A gunman opened fire at the Washington, D.C., offices of the conservative Family Research Council in 2012 after seeing it listed as an “anti-gay” group on SPLC’s website.

The SPLC has turned into a fundraising powerhouse, recording more than $50 million in contributions and $328 million in net assets on its 2015 Form 990, the most recently available tax form from the nonprofit. SPLC’s Form 990-T, its business income tax return, from the same year shows that they have “financial interests” in the Cayman Islands, British Virgin Islands, and Bermuda. No information is available beyond the acknowledgment of the interests at the bottom of the form.

Digging through (the usually excruciatingly dull) IRS filings, Schoffstall discovered that the group sent “hundreds of thousands to an account located in the Cayman Islands.”

Hmmmm.

He continues:

Tax experts expressed confusion when being told of the transfer.

“I’ve never known a US-based nonprofit dealing in human rights or social services to have any foreign bank accounts,” said Amy Sterling Casil, CEO of Pacific Human Capital, a California-based nonprofit consulting firm. “My impression based on prior interactions is that they have a small, modestly paid staff, and were regarded by most in the industry as frugal and reliable. I am stunned to learn of transfers of millions to offshore bank accounts. It is a huge red flag and would have been completely unacceptable to any wealthy, responsible, experienced board member who was committed to a charitable mission who I ever worked with.”

“It is unethical for any US-based charity to invest large sums of money overseas,” said Casil. “I know of no legitimate reason for any US-based nonprofit to put money in overseas, unregulated bank accounts.”

“It seems extremely unusual for a ‘501(c)(3)’ concentrating upon reducing poverty in the American South to have multiple bank accounts in tax haven nations,” Charles Ortel, a former Wall Street analyst and financial advisor who helped uncover a 2009 financial scandal at General Electric, told the Free Beacon.

Read the whole thing here.

The Author

Matthew Vadum

The author of Subversion Inc.: How Obama’s ACORN Red Shirts are Still Terrorizing and Ripping Off American Taxpayers (WND Books, 2011), Vadum writes and speaks widely on ACORN and other…

Comments

  • edable1

    Right out of the Clinton playbook