Chicago Sun-Times

Jackson charity amends tax filing

April 27, 2001

BY TIM NOVAK AND CHUCK NEUBAUER STAFF REPORTERS

The Rev. Jesse L. Jackson's biggest charity has amended its most recent federal tax return to disclose the names of 40 donors it had omitted, including some who have financially benefitted from Jackson's crusades.

The newly disclosed donations include $50,000 from Georgetown Partners, owned by Chester Davenport, a black entrepreneur. Jackson opposed the merger of Ameritech and SBC Communications until Ameritech agreed to sell part of its cellular business to a minority owner--Davenport.

There also is $50,000 from Burger King. Jackson sided with the fast-food giant in its recent legal battle with a major black franchise owner, causing a rift between Jackson and the Rev. Al Sharpton, who backed the franchise owner.

The staff of Jackson's Citizenship Education Fund said last month it would amend the 1999 tax return because it left out the salaries of its top employees, including Karin Stanford, who bore Jackson a child. The charity's return now lists $67,249 being paid to Stanford.

Staff members also said they would review the return and correct any other mistakes.

It turns out the original return neglected to identify everyone who gave $5,000 or more, as required by the Internal Revenue Service. The return listed 47 people and businesses who gave $5,000 or more; the new return shows 87 donors who gave a total of $2.5 million.

"It was just an oversight," said Henry Creel, the Ohio accountant who prepared the original and amended returns. Creel said he thought he had a complete list of donors when he filed last year.

"There was no intention to keep the names off. There was no attempt to hide anything," said CEF chief financial officer Billy Owens.

Owens said it was a "mistake" not to include all of the donor names, but he pointed out that all of their donations were reflected in the $9.9 million in total revenue CEF reported on the original and amended returns for 1999.

CEF is a nonprofit organization that pays no federal or state income taxes, so Owens said the amendments will have no financial impact on the charity.

Owens said the amended 1999 return has been filed with the IRS. CEF gave a copy last week to Illinois Attorney General Jim Ryan, whose office regulates charities in Illinois.

Ryan has said he sees no reason to investigate CEF or Jackson's other groups, such as the Rainbow/PUSH Coalition. Ryan said he saw no evidence of financial problems.

Besides the $50,000 from Davenport's Georgetown Partners, CEF also got $50,000 from Davenport personally the previous year, according to Owens and records.

Jackson's son Jonathan is CEF's unpaid president. Jonathan Jackson also was listed on PUSH documents as a representative of Georgetown Partners on a trade mission his father made to Africa last year.

The new list of donors includes two minority-owned investment banking firms--Williams Capital Group and Guzman & Company--that have benefitted from Jackson's Wall Street Project to get corporations to work with minority firms.

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40 more listed

The Rev. Jesse L. Jackson's largest charity, the Citizenship Education Fund, has amended its 1999 tax return, revealing the names of 40 additional people and companies that donated at least $5,000 to the charity. Those included in the new filing were:

WLS-Channel 7, Chicago, $5,000.

BP Amoco, Chicago, $25,000.

Compaq Computer Corp., Nashua, N.H., $10,000.

Quaker Oats Co., Chicago, $5,000.

Reginald F. Lewis Foundation, New York City, $5,000.

James Wharton, North Sioux, S.D., $10,000.

DaimlerChrysler AG, Auburn Hills, Mich., $25,000.

Con Edison NYC, New York City, $5,000.

Williams Capital Group, New York City, $50,000.

Telecommunication Systems Inc., Annapolis, Md., $25,850.

Holland & Knight LLP, Washington, D.C., $5,000.

Essence Communication Inc., New York City, $5,000.

Commonwealth Edison, Chicago, $5,000.

Don King Productions Inc., Oakland Park, Fla., $5,000.

Columbia National Inc., Columbia, Md., $5,000.

Integrated Systems Analysis Inc., Arlington, Va., $5,150.

New York Stock Exchange, New York City, $120,000.

Guzman & Co., Miami, $45,850.

Sloan Financial Group Inc., Durham, N.C., $25,600.

WJYS-TV Jovan Broadcasting, Tinley Park, $100,000.

Coors Brewing, Golden, Colo., $25,000.

PaineWebber Inc., Weehawken, N.J., $25,000.

Board of Education, Brooklyn, N.Y., $15,000.

Burger King Corp., Miami, $50,000.

JCPenney, Dallas, $5,000.

Spectronics, Atlanta, $20,000.

McSween Enterprise, Chicago, $8,500.

Ameritech, Chicago, $10,000.

PaineWebber Inc., New York City, $25,000.

Ford Motor Co., Detroit, $75,000.

Duhaney Pontiac Buick, Miami Lakes, Fla., $7,500.

GTech Corp., West Greenwich, R.I., $5,000.

JCPenney, Elk Grove Village, $5,000.

Office Depot Inc., Delray Beach, Fla., $5,000.

Arthur Anderson LLP, Chicago, $50,000.

Pepsi-Cola, Purchase, N.Y., $15,000.

Georgetown Partners, Bethesda, Md., $50,000.

Bell-Atlantic, New York City, $125,000.

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Rainbow/PUSH rejects $300,000 from state

The Rev. Jesse Jackson is turning down $300,000 in grants from Illinois Attorney General Jim Ryan. Ryan wanted to give Jackson's Rainbow/PUSH Coalition the money from a national settlement to set up computer and AIDS education programs for black women. Members of Jackson's staff rejected the grants this week because they thought they would lose money running the programs under the terms of the agreement.

-- Anonymous, April 27, 2001