N.J. Foundation Accused of Multiple Abuses

The D&K Charitable Foundation, in Tenafly, N.J., faces allegations of giving excessive compensation to two of its executives, improperly benefiting from tax breaks, and inappropriately directing money to for-profit businesses, reports The North Jersey Record.

Chief executive Daniel Borislow, who created the foundation, paid himself at least $1.7-million, while chief financial officer George Farley was paid at least $1.2-million from 1998 to 2005. Mr. Borislow was the founder of the telecommunications company that later became Talk America, which he eventually sold for hundreds of millions of dollars. Mr. Farley was the CFO at that company.

Almost half of the foundation’s spending during its first decade has gone to the salaries of the two men, according to the article. The organization paid them $2.1-million from 2001 through 2005 and gave $1.6-million to charitable causes. New Jersey has no laws regulating salaries of employees of nonprofit groups.

Mr. Borislow declined to comment for the article. Mr. Farley told the newspaper that the pay was justified for the work required.