FoxNews Occupy Wall Street' Protesters Debate How to Deal With $500,000 in Donations
A few weeks ago, the Alliance for Global Justice, a Washington-based nonprofit, agreed to sponsor Occupy Wall Street and lend it its tax-exempt status, so donors could write off contributions. That means the Alliance for Global Justice's board has final say on spending, though it says it's not involved in decisions and will only step in if the protesters want to spend money on something that might violate their tax-exempt status.
FoxNews Occupy Wall Street' Protesters Debate How to Deal With $500,000 in Donations
At the moment, Occupy Wall Street protesters say they don't have leaders. The only way big decisions can be made and money can be spent is if the General Assembly—a daily meeting at which everyone who shows up has equal standing—reaches a consensus.
Where the group's money goes isn't entirely up to the General Assembly, either. As far as the Internal Revenue Service is concerned, Occupy Wall Street does not exist.
Alliance for Global Justice Occupy Wall Street, Fiscal Sponsorships & the Alliance for Global Justice.
So what does the Alliance for Global Justice do for Occupy Wall Street (OWS)? Essentially we collect and process their donations and pass the money on to them as a project of the AfGJ. In IRS parlance we take “responsibility for all financial and programmatic matters” of OWS. We are responsible to include their financial reporting as part of our own when we file our annual tax return, which for non-profits is called a form 990. We are accountable legally and financially to prove that all expenditures by OWS are within the IRS’s tax-exempt rules. If the IRS audits us, we will have to show supporting evidence of the numbers we report. Occupy Wall Street’s obligation to us is to provide the accounting and receipts we’ll need for the IRS and to not jeopardize our tax-exempt status through any actions of theirs.
With all of our fiscally sponsored projects we are responsible for them both financially and programmatically. However, our fiscal projects act autonomously with their own decision-making structures. We do not interfere or participate in those structures except in the, so far, unknown event that one of our projects would do something to jeopardize our tax-exempt status. Under our fiscal sponsorship contract, we have the right to tell them to cease and desist if that should happen and to cancel the contract if they refuse.
What do OWS and our other fiscally sponsored projects get out of the relationship? They get additional accounting and administrative staff support and advice. They get to offer their donors tax-deductions for their donations. They get online donation capacity and staff to process and deposit donation checks as well as to send the IRS-required form for donations of $250 or more. They don’t have to worry about IRS forms and deadlines. They are covered by our liability insurance. If they have paid staff, which OWS does not, we handle their payroll and enroll them in our group health policy. For an organization like United Students Against Sweatshops, which rotates an entirely new staff in every couple of years, we provide continuity and organizational memory.
Many supporters ask if AFGJ takes a portion of the donations. We charge a relatively low rate for fiscal sponsorship, at a flat 7% of all money that passes through our channels for processing.
Many supporters ask if AFGJ takes a portion of the donations. We charge a relatively low rate for fiscal sponsorship, at a flat 7% of all money that passes through our channels for processing.
Radical anti-American billionaire George Soros is a major backer of a left-wing group that is funneling money to the Occupy Wall Street movement.
The nonprofit organization at the receiving end of Soros’ largesse, Alliance for Global Justice, is managing donations benefiting the communists, socialists, anarchists and hippies now occupying Zuccotti Park in lower Manhattan. As of Oct. 19, OWS had taken in a grand total of $435,000 from all sources, including donations made by individuals online and in person, according to reports.
It should surprise no one that Soros (net worth: $22 billion), the ultimate Wall Street insider and preeminent funder of the activist Left today, embraces Occupy Wall Street.
