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Show me the money

Much discussion in the blogosphere about Margaret Moffett Banks' article on the efforts by the International Civil Rights Center and Museum to raise money from corporations.

The major objection is that we hurt the museum and the city by identifying some of the corporations approached. Some bloggers agree with museum officials that publicity could stifle potential donations. For the good of the project and the city, the thinking goes, we should have acceded to the wishes of the museum and not published the names, even though we knew them.

Withholding information that we think is of interest to our readers is not what we do. And believe me, we get the request not to publish "for the good of the city" pretty often. But one of our guiding principles is that the more information citizens have, the better decisions they can make about issues that involve them.

But I wasn't here last week. John Nagy, the editor in charge of the story, explains the thinking.

"The effort to develop the Sit-In Museum is one of the most substantial community projects in the last 10 years. Its supporters have sought to rally the community to fund and develop the museum as both a downtown redevelopment effort and also as a commemoration of the city's and N.C. A&T's unique roles in history. Over the last several years, the museum has received millions of dollars in local donations. Substantial public funding has also come from the local governments and the state.

"Additionally, N.C. A&T lent its clout to the museum effort in 2001 by agreeing to partner with the museum. That partnership included an A&T vice chancellor, David Hoard, serving as the museum's CEO, and two seats on the museum board for A&T representatives, including Chancellor James Renick.

"The museum is important to Greensboro, and the public should know what is going on with it.

"The museum's 2005 opening has been delayed by construction problems and additional fundraising that tops $10 million. This news came as local donors expressed concern about what was going on with the museum and how it has used its money to date.

"Several weeks ago, the News & Record submitted a public records request to the university for David Hoard's records pertaining to the museum. The university supplied a number of documents, including a status report on fund raising. Although the corporations' names were marked out, they nevertheless remained clearly visible.

"One of the museum's most obvious hurdles is fundraising, so we chose to look at what the museum was doing to raise money outside the community. We knew what the museum was doing and believed it to be in the public's interest to share that information.

"While this museum is run by a private, non-profit organization, it is, in spirit, a project that belongs to all the people. If you want to inform and inspire people, what better way to do that than to be open about how you are trying to bring this vital historic landmark to fruition?

"We talked a great deal about using the corporations' names in this story. Would the university be upset? Probably. Would the corporations be mad? Maybe slightly. Mad enough to back away? Not likely. Corporations support museums and other public projects because they believe in their purpose or see a solid business opportunity to be had.

"Greensboro believes in the museum's purpose; it is heavily invested in its future. It has the right to know about its present."


Comments (13)

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Sue said:

At the risk of being first, I really don't fault the reporter/editor for including the info because (1) you got it legitimately and (2) it's news. (Actually, I'd like to see your reporters do a bit more digging about the museum's overruns and oddball alliances than potential donor lists.)

I think I was asking a question of intent: the list you got was (poorly) marked and you weren't "supposed" to get that info. Is that a difficult choice? Are there ethics or rules about that?

"The good of the city" was used by a former N&R reporter to me about not reporting about a specific incident (I've heard other stories). So sometimes, the good of the city is considered, I'm sure. Where do you draw the line?

John Robinson said:

To some extent, this is a case in which you can't unring the bell. When the story said the names were clearly visible, it meant that. So, we were in the position of knowing the information. We often get information we aren't "supposed" to have. We broke no law getting it, so our only judgment is whether it was relevant to the story and to the public. We decided it was.

That "good of the city" argument doesn't wash much with me. Our priority is to think about what our readers want to know, not what we think would "help" the city. Who's to decide what the good is? For everyone who thinks "X" is good, you can find some who think it's bad. (And the last thing you want us to do is start making overt determinations that, well, we know this information but WE don't think publishing it will benefit this project so we will keep it from you, the reader.)

For instance, we're often told by city leaders not to publish the names of industrial clients who are asking for incentives because it may kill the deal. They say it is for the good of the city. But we know a lot of people who won't want the industry or won't want to give them incentives. Our call: let citizens know and they can decide whether it is for the good.

It's not perfect, I know, but it's what we do.

Doug said:

Question???
If these is a tax free group, using tax payers money, is not all information open to the public?? Could the NR publish a list of money and where it went?? And to who???

John Miller said:

Doug, you are right.

Organizations granted tax exemption by the IRS are required to file annual returns (form 990) which lists donors who contribute over a certain amount (unsure of the threshold). This is public information and available on request from the organization, or the IRS.

This report will also contain financial information related to the organizations activities related to such areas as legal, fund-raising, and other expenditures. Some organizations are very detailed with respect to their expenditure activities in the reports, others aren't.

John Nagy said:

To Doug's point, the group, while having received tax dollars, is NOT public. That's an important distinction. John Miller is right about the 990s, and we long ago received those and enriched our reporting with them. Also, we have obtained and reported on their audited statements over the last few years.

Since N.C. A&T is a partner with the museum, and since its vice chancellor of development is the day-to-day CEO of the museum, we made our public records request to the state university, NOT the museum. The museum did not supply us with those documents, and they don't have to. They are a non-profit, yes, but they are not a public body.

To my point earlier in JR's original post, the museum nevertheless is very important to the entire community. A complete openness about the museum engenders understanding and good will from that community.

Doug said:

Mr Nagy,
Question?? Am I to understand that this can be funded by taxpayers $$ and we have no right to know where the money goes??? Question 2 Make belive this group gets X$ from the taxpayers, they can go put it in their bank account???
3 How can this be good for anyone except the people running this?? It removed tax base, its run off taxpayers money.Its made $ dissapear, and most of what I read is negative?? If its like most museums I know, its going to be a money eating machine.
Thanks Doug

Shirley deLong said:

ENOUGH IS ENOUGH! Civil Rights Museum (old Woolworth's bldg) should be SOLD to pay off the mortages that Alston and Jones owe on this building purchase. When they both state and I quote "Local, State, and Federal Money would go to fix and repair building" they're talking out of both sides of their mouths as usual. This is Taxpayers money being spent to pay mortgages, rent, and everything else they can think of. Check out the local tax office! This building was a mistake, from the very beginning, and Taxpayers are tired of paying for 'endless money pits' created as non-profit organizations, so no one has to work and neither do they have to pay the money back.
A & T has an elegant memorial of this 'Sit-In' for all Taxpayers to see. Why do we have to KEEP BANKRUPTING Taxpayers to create something for personal use? WAKE UP, FOLKS!

Shirley deLong said:

THIS IS NOT ABOUT 'WHITE OR BLACK' IT'S ABOUT BEING A GOOD AMERICAN!


While I am on a roll and thinking about what Taxpayers should do before the
Tax and Spend politicians finishing bankrupting America, I'm going to point out a
few critical issues. But first, I have to address 8/2/05 article "NAACP is needed
to protect rights of black Americans". Does this mean it's o.k. for White Americans
to have a NAAWP to protect their rights and collect Taxpayers money, also, so they
no longer have to work at a real job? Frankly, I don't care, either way, but if Taxpayers
continue footing the bills for any of these groups, then they’re at fault, also.

Before the 1960's, Whites and Blacks worked together. Why, all of a sudden, 'it's a
white and black' thing?' I feel sorry for people who use this as an excuse. Don't you
understand that all Taxpaying Americans' civil rights are being violated by the greed of
the politicians?
The NAACP is just one of the non-profit organizations I've been talking about getting
Taxpayers monies without working. If NAACP was helping anyone but themselves, they'd be
in all neighborhoods, stopping illegitimates from having more illegitimates. Don't you
think this is causing prostitution, incest, run-down housing, drugs, rape, stealing and
killing? Why do you think your neighbors are trying to 'take back the schools, streets and
neighborhoods?" Because they know the problems that's been caused by this way of life! Once
again, this isn't about Black and White, it's about being a good American! If you can broaden
your thinking, get off your duffs, get involved, and for America’s sake, start helping instead of
criticizing!

Public Records show thousands of non-profit organizations getting Taxpayers money that
shouldn’t be. Guess who's listed as Agent? Check out Secretary of State and Tax records.

WAKE UP AND THINK FOLKS!

Jim Wilson said:

All of this has shades of Project Homestead written all over it.

TONS of money poured down something to give us all a good, warm feeling inside.

I suspect massive waste and fraud.... of course, proving that is futile.

John Nagy said:

To Doug's comment up a few, tax dollars go to non-public things all the time. Just look at the current state budget being proposed. It has millions of dollars of state money going to museums, arts groups, etc.

When an organization receives state money, it typically does not co-mingle those funds with other money it has. It keeps it separate so it can account for it when it gets audited by the state. And yes, the state audits these groups.

You will recall, from Project Homestead, that its funds were co-mingled, so it was difficult for the city to know how its money was spent.

The Sit-In Museum has said it will use its state allocation for construction-related expenses. That is distinctly different from "operational" expenses such as salaries, travel and the phone bill.

John Miller said:

I believe the problem/issue that many people in our community have with the museum is the relationship that Earl Jones & Skip Alston, currently or in the past, have had with this project.

Many still remember the controversy surrounding the alleged unauditable records of Mr. Jones not-for profit organization, and the recent information regarding the unsuccessful public apartment project that Mr. Alston oversaw.

This may be one of the reasons for the hesitancy of organizations and some private individuals to donate to this worthy project.

Anyway, when completed the museum will be a very positive addition to our community.

Doug said:

Mr Nagy,
I think you just explain why NC is the 49th worst mamaged state!Of course you understand a aduit of taxpayers money is a waste any thing found has to go Roy Cooper. Cooper has not did a thing about Basnight and Black misuse of taxpayers money and never will. Corruption alive and well in the good ole boy state. Thanks for your time. Doug

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