College of DuPage Foundation – Bigger problems on the horizon

DuPage Co. (ECWd) –

The COD Foundation is a 501(c)(3) non profit organization.  All activities of that foundation are subject to strict rules of which violations of such rules could lead to revocation of their non profit status.

After today’s exposure that the Foundation is paying in excess of $165,000.00 for alcohol for Breuder and his Administrative staff we can only wonder how long before the feds step in and yank their non profit status as such expenditures are not authorized.   (Copy this title and Google search to view without subscription – “College of DuPage trustees, administrators bill alcohol to foundation” – or click here- might require subscription)

Susan Lang Berry-Foundation President stated: “The college is not getting the money that’s being raised,” she said. “Giving money (to the foundation) is giving money to the students.”

Oh really!  $165,000.00 in booze to Breuder and his team is not giving money to the students 

This woman must be delusional!  A recent letter to the editor she sent to the Chicago Tribune she stated the following:

“In the past year alone, the foundation — which operates separately and distinctly from COD — has seen its number of contributors double and added more than $3 million to its net assets due to donor generosity and prudent stewardship. These dollars translate to student scholarships, programmatic support and further innovations spurred by our Resource for Excellence Grant Program.”

How convenient.  She failed to mention $165,000.00 in funds spent on booze for Breuder and his team.

You would think the President of the Foundation might be a little more informed with how money is being spent, but I digress.  Considering Catherine Brod and Breuder are involved I suspect if the truth is ever known, they pulled the wool over the Foundation Board members as well.

A bigger problem for the Foundation is the fact their expenditures on booze for totally unrelated matters to their charitable cause may well bring a forfeiture of their non profit status!

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.

Buying alcohol for the President of the college and his staff is not in any fashion a qualified expenditure for a 501(c)(3) and is in fact a spending of non profit funds for an individual, and in this case numerous individuals. 

“The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.  The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.” (Click here for IRS information)

Boozing it up before board meetings on the Foundation dime is not a qualified expenditure 

I wonder if the Foundation got involved in any way in the Bond Referendum?  Wouldn’t that be special…

I suspect now is about the time the Illinois Attorney General Lisa Madigan should step in and take action.  Considering it is her office that handles the charitable organization status for these foundations she should swoop in and hold them accountable.

I digress, this is Illinois