Each year the Community Foundation of North Louisiana (CFNL) raises millions of dollars in its Give for the Good and in its other fundraising efforts.
The Foundation has been certified as a tax-exempt organization under the Internal Revenue rules and regulations. This means that contributions to the CFLA are deductible on tax returns.
However, to maintain that status, the CFNL must comply with all of the IRS guidelines. If not, the organization can lose its tax-exempt status, and in that event, contributions do not qualify for tax deductions.
Until this year the CFLA only assisted non-profit organizations by assistance in fundraising and in grants. This is the expected business operation of a community foundation.
But this year, the CFNL is raising money for a for-profit business. Yes, raising money to go to a business operated by profit. And this business is owned by John Georges, a New Orleans megamillionaire ($350 million net worth). Georges owns newspapers in New Orleans (2), Baton Rouge, Arcadiana and now
here -- the Shreveport-Bossier City Advocate, an online-only publication.
Reportedly, almost $500,000 has been raised. Georges wants another $1 million to fund a three-year operation here. Kristin Gustavson is the executive director. She is an attorney by trade and before her hire had no experience in non-profit organizations. Her salary in 2021 exceeded $150,000.
Gustavson has failed to answer an email requesting information about this fund-raising effort and if the same violates the non-profit status of the Foundation. The email was dated July 25 of this year, and its receipt was acknowledged. But none of the questions was answered.
The so-called blue chip board of directors include attorney Jerry Edwards and attorney Lisa Cronin, physician Dr. Wanda Thomas, real estate developer Witt Caruthers, businessman Glenn Kinsey, retired banker Stephen Walker and Lisa Childs. Each of these directors should be aware of the inquiry and the refusal of Gustavson to answer.
So-o-o, what is the deal?
Why is the CFNL assisting John Georges?
Is the Community Foundation violating the IRS non-profit rules and regulations?
Will all the contributions to the Foundation lose the status of being tax-deductible?
Why is the Foundation not answering a valid inquiry?
Will litigation challenging the tax-exempt status and/or mandating a response to the inquiry be needed to clarify this issue?
And if so, will the board of directors be individually liable as well as Ms. Gustavson for any adverse court rulings along with attorney fees and costs expended in defending any litigation?
Why give any money to the Community Foundation or the efforts it promotes, including Give for the Good?
John came to Shreveport in January of 1977 when he was transferred to Barksdale AFB.
He’s been active in Shreveport politics since deciding to make Shreveport his home.
John practiced law for 40 years and he now monitors local politics. He regularly attends Shreveport City Council and Caddo Parish Commission meetings.
John is published weekly in The Inquisitor, bi-monthly in The Forum News, and frequently in the Shreveport Times.
He enjoys addressing civic groups on local government issues and elections.