Assets on Loan
February 5, 2004 | Read Time: 2 minutes
A six-month Chronicle investigation of thousands of loans made by nonprofit groups to charity officers and directors found at least 140 interest-free loans, personal loans for investments in stock and real estate, and loans to wealthy donors who borrowed back money they had contributed to nonprofit groups they had started.
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News
Assets on Loan: Nonprofit Groups Lend Millions to Officials, Chronicle Study Finds
Federal law bars foundations — but not charities — from making loans to their officers and directors. The practice is prevalent enough that two influential voices in the charity world reacted sharply to The Chronicle’s findings. -
News
Charities Bestow No-Interest Loans on Their Well-Paid Executives
In an analysis of Form 990 informational tax returns filed by 10,700 nonprofit groups from 1998 through 2001, The Chronicle found that at least 140 groups had interest-free loans outstanding to officers or directors. -
News
How a Loan Deal Backfired on One Nonprofit Leader
An executive director has a message for nonprofit groups thinking about making a loan to one of their officials: Don’t. -
Opinion
Donors Set Up Grant-Making Groups, Then Borrow Back Their Gifts
The owners of a successful truck-stop business contributed $1.4 million to their foundation and took the tax deduction for the contribution — then borrowed more than half of that money to pay off loans and make investments. -
News
One Utah Lawyer Helped Create 8 Groups That Lent Money to Donors or Officers
As The Chronicle analyzed the records of supporting organizations that lent substantial sums of money to their officers or directors, one name appeared repeatedly: Richard H. Bradley, a Salt Lake City lawyer. -
News
How The Chronicle Tallied Loans Made by Charities
In a search of IRS Form 990s, The Chronicle found 2,278 nonprofits that listed at least $10,000 in loans to directors, officers, or other key employees. -
News
Reporting Loans: What the IRS Says
Nonprofits that are required to fill a Form 990 tax return must report loans made to officers and directors, including the borrower’s name, the amount of the loan, the interest rate, repayment terms, and other details. -
News
Loans by Charities: Related Tables
See a list of groups that have provided interest-free loans, states where loans to officials are banned or limited, and more.