Recent revelations regarding the outrageous behavior of officials of the Bahama Conch Community Land Trust are at best, terribly disturbing, and at worst, bordering perilously close to criminal.
The forensic audit is only in its initial stages, and already the very preliminary results lead us to prepare for the absolute worst that’s likely to come. All this, and the auditors have yet to delve into the specifics of this non-profit’s financial dealings.
Listening to the audio tapes of their Board of Director’s meetings, invokes outrage in all most everyone – and rightfully so. Hurt most by these revelations are the very people who supported this organization over the years. While most of us feel anger, they’re experiencing a combination of outrage and betrayal.
Putting our emotions aside for the moment, the pressing question at-hand is, “What do we do with the Land Trust now?”
The easiest thing we can do is let it collapse under its own weight of lies, deceit, mismanagement, and corruption, along with who-knows-what-else has yet to be revealed. While some may find it emotionally satisfying, the consequences of this collapse would be costly.
The community has an investment in this program; a few million dollars worth of hard cash. The Land Trust’s collapse would throw all its properties – some of which are occupied - into an unimaginable quagmire, both legal and managerial.
Just the behavior of its leaders alone, is enough for the state and federal governments to immediately revoke the organization’s non-profit tax exempt status. Without that, the Land Trust is out of business – permanently. Couple their outrageous behavior with any financial irregularities, and even the concept of another land trust will be destroyed.
Effective immediately, every single Land Trust employee needs to be terminated, and all but one of its Board of Directors resign. Ultimately, he too will need to resign, but he’ll be needed to ensure a proper transition.
On the recordings that have been unearthed so far, Bob Kelley was the only board member to speak against the despicable behavior being contemplated by his colleagues.
He’ll need to remain in place to appoint someone – not of his choosing – to fill a board vacancy. Those two board members will vote to fill a third vacancy, those three to fill a fourth, until all the vacancies have been filled. Then set a timely date for official elections, candidates for which don’t include Kelley.
Only by terminating all past associations, will this non-profit organization have any opportunity to rebuild itself. Accomplishing this is the only way the organization and the City will be able to say this is a completely new organization from top-to-bottom. We would hope Bob Kelley, former employees, volunteers and contractors understand this necessity.
The speed with which this is accomplished is critical. The newly configured Board of Directors and City officials need to be able to present a credible new face of this non-profit to state and federal officials who’ll be eager to revoke this non-profit's credentials.
Another option would be to dissolve the organization in a manner that allows for the proper transition of its assets. Before state and federal authorities will approve the certification of a non-profit, the organization must first declare what will happen to its assets should the organization dissolve. Usually, the dissolving organizations assets are transferred to another non-profit with a very similar purpose and mission; Habitat for Humanity or the City's Housing Authority might be a viable opportunities.
Those are the most viable options for dealing with the organization. Holding the individuals accountable for their behavior and actions are another matter entirely, but the answer is simple. If it appears to be criminal, refer it to the State Attorney’s Office for investigation and possible prosecution.
If federal funds were involved, whatever happened may end up being the subject of a racketeering investigation.
When the members of a non-profit organization engage in severe conflicts of interest, financial improprieties, attempts to deceive public officials and to undermine the electoral process, that's dangerously close to racketeering.
The Land Trust’s attorney – heard on several of the recordings - was incompetent, irresponsible and extremely unprofessional. He needs to be referred to the Florida Bar Association for disbarment proceedings.
To understand the predicament the Land Trust’s Board of Directors have gotten themselves into, one needs to understand the concept behind why nonprofit organizations are authorized and restrictions that accompany this status.
If a group of people want to organize for a public good, whose sole intention is to benefit the community at large, then they should be able to form a charitable organization that allows benefactors to contribute financially and get a tax break for doing so. States can help by exempting these organizations from paying sales tax on its purchases. It’s all for the public good, so their efforts should get this assistance.
However, people could - and sometime do - use such organizations and their benefits to enrich themselves, or for political purposes; thus, the very strict rules governing their financial actions and behavioral activities.
They are strictly prohibited from political activity. Whether it be endorsing candidates for public office whom they deem favorable to their cause, or trying to undermine the candidacy of those less favorable, either will result in swift loss of their non-profit status.
On the tapes, we hear people at the official Board of Directors meetings repeatedly scheming to undermine the re-election of a sitting city official. We hear them scheming to deceive city officials, to say or do anything to get that 99-year lease for the Waterfront property, with plans to return to their evil deeds once the lease has been signed, leaving the City powerless to correct their behavior.
Hearing this, it would take state and federal authorities less than an hour to revoke this organization’s non-profit status; with most of this hour consumed by the paperwork involved.
Conflicts of interests are another huge no-no for non-profits, and the subject of intense concern by the IRS, which issues the most important non-profit certifications.
Allowing the organization’s Executive Director to solely employ the services of her Son’s construction company is a major conflict of interest. When that very same Executive Director is simultaneously the Treasurer of her Son’s construction company, some would consider that corruption.
How a non-profit handles its money is heavily scrutinized by government officials. Turning over large amounts of the organization’s cash to anyone, is a major violation. Turning over large sums of its cash to the son of the Executive Director, so he can use it to supposedly pay others, coupled with the fact that the Director is also the Treasurer for her Son’s company, is potentially criminal.
Some of their most crucial Board meetings have no minutes at all. Those recordings and any written minutes have simply disappeared. Meeting agendas left behind, tell us these were critical Board meeting.
Knowing what we now know about the recordings that still exist, we can only guess how bad the tapes were that are now among the missing or destroyed. We can only surmise, that the conversations on those recordings were so bad that the organization would rather take the hit for not having any records of what transpired during these meetings, than have public learn what was on them.
To the sitting Board Members, your behavior was dishonorable. Whether you were one of the schemers or someone who did little or nothing to stop it, you need to do the only honorable thing left, terminate all the employees and resign.
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