More LV NonProfit Salaries

On Monday, I published a story listing the salaries at some of the top Lehigh Valley nonprofits. I obtained my information from 990 Finder, an online compendium of nonprofit tax return. I was asked about Greater LV Chamber of Commerce and Lehigh Valley Economic Development Corp.(LVEDC), but 990 Finder had no data for these entities. Greater LV Chamber of Commerce is a 504c6 nonprofit, and I assumed incorrectly that LVEDC fell into some other category.

In a fairly good demonstration of what I like to call participatory journalism, readers have been unable to find some interesting information that I missed.  I am listing it below.

Lehigh Valley Economic Development Corp's (LVEDC) Don Cunningham - $147,702 salary plus $15,640 in other compensation on total revenue of $2,828.040. VP Lea Glembot was also paid $101,253 plus $7,999 in other compensation. Cunningham's compensation package is 5.8% of the total revenue raised. Source - 2015 990 for calendar year 1995.

Greater Lehigh Valley Chamber of Commerce's Tony Iannelli - $199,539 salary plus $19,019 in other compensation on total revenue of $3,804,639. Exec VP Frank Facchiano was paid a $134,400 salary plus $2,088 in other compensation. Iannelli's compensation is 5.7% of the total revenue raised. Source - 2014 990 for the period 7/1/14 thru 6/30/15.

Allentown Economic Development Corp's Scott Unger -$114,885 salary and $14,695 in other compensation  Unger's compensation is 7% of the total revenue raised. Source - 2015 990 for period 7/1/15 thru 6/30/16.

St.Luke's Health Network's Richard A Anderson - $3,560,530 salary and $286,505 in other compensation on what is being portrayed as negative revenue of $32 million. Source - 2015 990 for period from 7/1/15 thru 6/30/16.

Lehigh Valley Health Network's Ronald Swinfard - $2,364,927 salary plus $33,636 in other income. The revenue figures make no sense to me. Treasurer and CEO Brian Nestor has a salary of $1,002,894 plus $31,340 in other income. Fifteen people are paid over $100,000. Source - 2015 990 from 7/1/14 thru 6/30/15.

The tax bill under consideration by Congress would impose a 20 tax on remuneration over $1 million for the five highest paid employees at nonprofits.

What Do LV Non Profit Bosses Earn?

If you'd like to make a lot of money, you probably should steer clear of nonprofits. I've listed the compensation packages of some of the Lehigh Valley's top nonprofits below. These were obtained from 990 Finder, an online compendium of nonprofit tax returns. .

You can use that site, too, if you are curious about a nonprofit I failed to list. If you learn something you'd like to share, please do so in a comment.

The wages paid to a nonprofit employee only have to be listed once they top $100,000.  Most nonprofits are unable to afford that kind of money.

Nonprofits that can afford to pay higher salaries usually try to stay at or below five per cent of the total revenue. So the top three dogs at ArtsQuest only earn 2.6% of the total revenue. Alan Jennings, who is castigated frequently, receives a very low wage. It's only 0.7% of the revenue his organization raises.

PBS-39's Tim Fallon is listed as getting a third of his group's revenue. I believe there must be another organization that I missed.

Da Vinci's Lin Erickson and Allentown Art Museum's David Mickenberg are paid a bit too much.

ArtsQuest pays three people over $100,000. President Kassie Hilgert is paid a $172,452 salary and other compensation of $10,821. Senior VP Walter Keiper is paid $150,834 plus other compensation of $15,254. Senior VP Curt Mosel is paid $107,814 and other compensation of $16,437. This is based on total revenue of $17.8 million. Source - 2015 990 for calendar year 2015. Combined, these salaries are 2.6% of revenue

State Theatre's Shelley Brown - $153,750 salary on total revenue of  $4,419,353. Source -2015 990 for period from 6/1/15 through 5/31/16. Brown's salary is about 4.5% of revenue.

Allentown Art Museum's David Mickenberg - $151,560 salary and $9,686 in other compensation on total revenue of $2,151,858. Source - 2014 990 for period 7/1/14 thru 6/30/15. Mickenberg's salary appears to be 7.4% of total revenue

PBS-39's Tim Fallon - $140,671 salary and $18,552 in other compensation on total revenue of $473,399. Source - 2015 990 for the period 7/1/15 to 6/30/16  Fallon's salary appears to be 33.6% of revenue.

Allentown Symphony Association's Sheila Evans - $134,025 salary plus $15,975 in other compensation on total revenue of  $3,069,360. Source - 2015 990 for period 6/1/15 thru 5/31/16. Evans' salary is roughly 5% of the total revenue.

Da Vinci Center's Lin Erickson -  $129,500 salary plus $6,624 in other compensation on total revenue of $1.49 million. Source - 2015 990 for the period 7/1/15 to 6/30/16. Erickson's salary is around nine per cent of total revenue.

Wildland Conservancy's Chris Kocher - $127,586 salary plus $7,362 in other compensation on total revenue of $3.1 million. Source - 2015 990 for 2015 calendar year. Kocher's salary is 4.3% of total revenue.

Discover LV's Mike Stershic - $125,000 salary and $30,167 in other compensation on total revenue of $3.8 million. Source - 2014 990 for 2014 period 7/1/14 to 6/30/15. Stershic's compensation package is about 4% of total revenue. 

Allentown Rescue Mission's Jim Byrnes - $109,141 salary plus $9,057 in other compensation on total revenue of $3.5 million for the period 7/1/15 thru 6/30/16. Source - 2015 990. Byrnes salary is about 3.3% of total revenue.

Community Action Committee of the Lehigh Valley (CACLV)'s Alan Jennings - $101,336 salary and $47,050 in other compensation on $21.1 million in revenue. Source - 2015 990 for the period 7/1/15 to 6/30/16. Jennings's total compensation is 0.70% of the total revenue.

LV Habitat for Humanity's  Deb Cummins - $98,373 salary plus $2,790 in other compensation on total revenue of $2.468 million. Source - 2015 990 for period 7/1/15 to 6/30/16.  Cummins's salary is 4.0% of tital revenue.

Lehigh Conference of Churches' John Felch - $90,000 salary plus $917 in other compensation on total revenue of $4.6 million. Source - 2015 990 for calendar year 2015, Felch's salary is just about two per cent of total revenue.

National Museum of Industrial History's Amy Hollander - $57,894 salary plus $11,167 in other compensation. Treasurer Theodore Harlan earned $66,284 plus $3,907 in other compensation. Total revenues are $3,328,738. Source - 2015 990 for calendar year 2015. Hollander was replaced earlier this year. Hollander was earning two per cent of total revenue.

Beginning Over Foundation's Heidi Markow - $52,722 on total revenue of $577,427. Board member Helen Venturini also paid $52,777. Source - 2015 990 for calendar year 2015. Markow took 9.1% of total revenue as a salary, but in fairness, it seems like a small organization. .

Baum School of Art's Shannon Fugate - $57,001 salary and $3,139 in other compensation on total revenue of $1,166,348. Source - 2015 990 for period 7/1/15 through 6/30/16. Fugate's salary is 5.1% of total revenue.

Lehigh Valley Arts Council's Randall Forte - $46,000 salary on total revenue of $295,838. Source - 2015 990 for 9/1/15 thru 8/31/16.  While Forte's salary is low, it is 15.5% of total revenue.

Historic Bethlehem's Charlene Donchez Mowers - Not listed. Under $100,000 on total revenue of $338,600. Source 2015 990 for 3/1/15 to 2/29/16.

Greater Easton Development Partnership's Jared Mast - Not listed. Under $100,000 on total revenue of $443,518. Source - 2015 990 for calendar year 2015

Third Street Alliance for Women and Children's Alisa Baratta - Not listed. Under $100,000 on total revenue of $1.744 million. Source - 2016 990 for unstated period. Filed 7/25/17.

Turning Point of the Lehigh Valley's Lori Sywensky - Unlisted. Under $100,000 on total revenue of $1,687,948. Source - 2015 990 for period 7/1/15 thru 6/30/16.

Biekenstocks Backtrack on Fetterman

On Monday, I told you that Lehigh University's Birkenstocks, who call themselves the South Side Initiative, were improperly using university resources to tacitly endorse John Fetterman's campaign for the US Senate.This is a clear violation of an IRS ban on political activity by 501c3 nonprofits. Given that most of these professors teach political science, they really should know better. But in their defense, they've been busy pretending that they're experts on urban planning

Yesterday, to her credit, Breena Holland apologized for improperly passing on news of Fetterman's Bethlehem visit.

Dear Friends of SSI:  It has been brought to my attention that a recent SSI email passing on information to you all about John Fetterman's visit to Bethlehem could imply an endorsement of his candidacy for US Senate by Lehigh University. Neither the SSI nor Lehigh University had any involvement in inviting, organizing, or funding Mr. Fetteman's visit to Bethlehem. While many people in the community and at the university have in the past discussed bringing Mr. Fetterman to Bethlehem to speak about urban revitalization, his opinions are neither those of Lehigh University nor sanctioned by Lehigh University.  Please accept my apologies for not clarifying this when I originally passed on the information about his visit to Bethlehem.  Sincerely,  Breena  (SSI Director)

Birkenstocks Violate IRS Ban on Political Activity at Lehigh

I've told you before about Lehigh's very own Communist fiefdom - the ill-named "South Side Initiative." I call them the Birkenstocks  They're the group that got all lathered up when Bethlehem decided two years ago to sell a not so aMazing  "Maze Garden" to developer Dennis Benner. After numerous consultations over herbal tea, they broke out the Birkenstocks to invade City Hall. and stop that damn capitalist.

They failed, but undaunted, they were back before Council a few months later to decry - gasp! - proposed development on the South Side.

Traffic!

Noise!

Time to oppose the "power structure."

University Professors Matter!

The nutty professors - Al Wurth and Breena Holland - have skipped a few nights of Thai at the Promenade to condemn anything that might actually revitalize South Bethlehem.

Even a much-needed parking garage that most South Side merchants want But they're not university professors. .

So far, academia has managed to fail at every step along the way. But now, South Side Initiative is going to use the electoral process to get someone in the Senate who will listen to them and do as he's told. This coming Friday, the Birkenstocks want you to meet Comrade John Fetterman, a U.S.. Senate candidate, and have sent out the following invitation under the imprimatur of Lehigh University.

Friends of the SSI: For those of you who have not heard of John Fetterman, he is the Mayor of Braddock, PA, who is currently running for a seat in the U.S. Senate. John has made a name for himself as someone who embraces creative ideas and innovative solutions to address problems of poverty and violence in one of Pennsylvania's most struggling run-down steel towns. He has charted a new path for Braddock, opening a community center, creating urban gardens, and bringing in new businesses to revive this community. John's story is compelling and Braddock's story should resonate with the people of the Lehigh Valley. You can learn more about John and his accomplishments at:  https://johnfetterman.com/  There will be two opportunities for residents to meet with John Fetterman on April 15th: * 12:00-2:00: Deja Brew, 101 W. 4th St, South Bethlehem *  5:00-7:00: Brew Works, 569 Main St, Bethlehem We hope to see you there, The SSI Team

This, of course, is a tacit endorsement of Fetterman's candidacy under a Lehigh University letterhead. Lehigh University is a non-profit. Inviting Fetterman, with no similar invitation to other candidates, is a violation of Lehigh's tax exempt status. I have advised Lehigh's General Counsel.

Convicted Embezzler on Pen Argyl Alumni Board

When he's done with work, he goes out to dinner every night of the week. But after that, it's Chez Northampton, sometimes called NCP and known to most of us as the hoosegow. Richard G. Dietrich, former GM of the now defunct Dietrich Chevrolet, spends his evenings at Northampton County's jail. That's courtesy of a five-month minimum sentence imposed by Judge Kimberly McFadden in January for Dietrich's felony theft of nearly $50,000 from a non-profit hunting camp. Not only did he steal this money, but he then fabricated records to try to hide his crime.

Everyone makes mistakes, including me. Dietrich, who had fallen on hard times, obviously made some poor choices. Although he's a criminal doing time, he might rehabilitate himself. But for now, it's incredibly foolish to keep him on the Board of Directors of the Pen Argyl Area Alumni Association. The sole purpose of that nonprofit is to raise private funds for the Pen Argyle School District through various fundraisers.

After stealing from one nonprofit, the last place Dietrich belongs is on the board of another.

Karen Dolan Plays the Spin Game

Bethlehem City Council member Karen Dolan likes to remind people like me that she's a former reporter. And at this moment, she's playing the spin game. Though she's been forced to resign as Executive Director at Illick's Mill, she sent out a news release as "Founder" on Sunday. Apparently, she's shutting it down. Now I was under the impression that all communications concerning Illick's Mill were to come through Board Chair Andrew Bollinger. But rules don't apply to her. Today, at 1 pm, she will parade a number of Mill success stories, so that everyone knows how sad and unfair it is and get angry at the Mean Mayor and even meaner DA. 

Here's the skinny. It is beyond dispute that Illick's Mill served a noble function. Dolan had a great deal to do with its good works. But in recent years, she lost her way. She racked up nearly $130,000 in monies owed to the City, mainly because she was misallocating grant money provided for that purpose. Due to her own mismanagement, the Mill lost its nonprofit status. It failed to file tax returns for three years in a row. As a paid Executive Director, she engaged in blatant conflicts of interest that included voting for budgets in which she had a direct pecuniary interest. She stopped paying utilities at the facility, while installing a whopping nine room air conditioners. She threatened the Mayor that she would use her position on Council and as Parks Chair to prevent a new lease, and one that required a rent payment, from seeing the light of day. She began using the Mill for weddings at which alcohol in excess of the 7% limit was served. She suggested on Council that it was time to allow people to use alcohol in City parks.

The problems at the Mill occurred for one and only one reason - Karen Dolan.

The real reason for her "Poor Us, We're Closing" announcement, is to pressure Mayor Bob Donchez into giving her what she wants - a rent-free Mill with nine room air conditioners and free oil. Let the taxpayers and other non-profits subsidize her turtle aquarium. She needs to stir up the troops, and that is what she is doing.

Just as the right has extremists like Ronnie Del Wacko, the left has extremists like Gloria McVeigh. They were both shouting at each other on Sunday when they both abused KidsPeace children while pretending they care. But they are both united in their hatred of independent observers like yours truly. Here's what McVeigh has had to say.

This is just a tragedy. No other words suit. All thanks to two publicity-seeking ego-maniacs + one spineless political leader of Bethlehem. Nice work, guys! Of course, the poor + minority families who enjoy the Park most + could educate their kids on the environment for free are big losers, but they never have any political power, anyway. Dark day for Bethlehem.

Put in its simplest terms, McVeigh's argument is that violations of the Ethics Act are permissible so long as it helps a "poor and minority" family. These transgressions were no help to the poor or minorities. They helped Karen Dolan collect her paycheck. I pointed this out at Facebook, but Dolan deleted my comment, claiming I am no "friend"of the Mill. Actually, neither is she.

She is currently under investigation by a Grand Jury looking at her own very obvious mismanagement at the Mill. Yet she is telling her uninformed supporters things like this:

"It can't hurt to call or email the Mayor's office. He needs to know people care."

"Our current Mayor has never seen the Nature Center, despite his recent comments that he "loves what we have been doing here."

"Write a letter to the editor or the Mayor or both, speak out at a city council meeting."

What she's really doing is trying to spin both the press with stories about how wonderful the Mill is, while simultaneously trying to make the Mayor out as the Bad Guy.

What she doesn't get, even now, is that she's the Bad Guy.

I'll be there to remind everyone at 1 pm today. So far as I know, it is open to the public and press.

She needs to resign from City Council, unless Bethlehem likes having ethically conflicted people.

Bethlehem Parks Director Visits Grand Jury

Northampton County's Investigating Grand Jury meets on Thursdays. Its proceedings are secret, and though witnesses may discuss their testimony, prosecutors are prohibited from disclosing what goes on. But it's pretty clear that District Attorney John Morganelli is thoroughly investigating the activities that occurred at the Illick's Mill when Bethlehem City Council member Karen Dolan was its Executive Director. I say this because I saw Parks Director Ralph Carp in the DA's office yesterday, waiting to go in.

Carp is the official who advised Dolan, in 2010, that the City would stop providing services to the City unless her debt was settled. Shortly thereafter, utilities were supplied at no cost.

Dolan: Do As I Say, Not As I Do

Karen Dolan, in late 2012, was among those Council members who argued that nonprofits should contribute financially to the City. She pointed out that it's a two way street. Cities need support from nonprofits to provide and pay for the environment that makes them so appealing and functional.

At the same time, she was paying nothing towards utilities at her rent-free nonprofit location. Later that month, she voted for a budget that included $6,000 for heating oil at her nonprofit.

Illick's Mill Chair: Dolan "Transparency" Email a Mistake

Andrew Bollinger, who chairs the Illick's Mill Board, has acknowledged that Karen Dolan's "transparency" emails were a mistake. "At our most recent board meeting, last night, we agreed that all future public correspondence would be reviewed and edited by the board prior to its release. More eyes, less haste."

He also indicated that Karen Dolan's last day as Executive Director is tomorrow. The Board voted to accept her resignation at a Sunday night meeting.

Dolan, a member of Bethlehem City Council, has come under fire for using her influence to ensure special treatment.

Most members of the Board, including Bollinger, are relatively new, and I have no desire to paint them or the Mill with Dolan's mismanagement.

Dolan Speaks to The Vulgaris

Bethlehem City Council member Karen Dolan may have resigned as Executive Director at Illick's Mill, but it's pretty clear she's still running the show. Over the weekend, she appears to have sent out three "GB. Fox Transparency" emails to the public.

Below a picture of her staring up at the Mill reverentially, as though it were the Face of God, her missive starts like this:

Although the recent false accusations, innuendo, and attacks against our non-profit have been outrageously untrue, we know that no one can protect themselves against unethical bloggers and those who act on the principle of repeating lies so that eventually they become “the truth.” In today’s 24-hour news cycle and atmosphere of vicious and unsubstantiated on-line accusations, we understand what Warwick meant in Henry VI: “What fates impose, that men must needs abide; It boots not to resist both wind and tide.” (Loose translation: Don’t fight what you can’t change.)

I'm not sure who this unethical blogger is, but I'm thinking Molovinsky. Might even be that bastard, Bill White.

How do I know it's Dolan? She quotes Shakespeare, and then has to translate it for we vulgaris, her intellectual inferiors.. 

Loosely.

She condemns the attacks on her nonprofit, but actually, it is her own conflicts of interest and questionable dealings with the City that have drawn criticism.

Anyhoo, after the tautology that false accusations are outrageously untrue (She was an English teacher?), Dolan goes on.

But we can speak the truth to you – backed up by every supporting document we have -- in the hopes that you will make up your own minds about the Fox Environmental Center. To that end, we created a Google Drive web site where anyone can review our organizational information at his or her convenience. In the coming weeks and days, we will add additional text to help our members and supporters understand how these documents make a clear case against loose accusations. We will also respond to each question raised against us in the blogosphere and then repeated in mainstream media.

She's gonna' need more supporting documents. None of them rebuts any of the things I've said about her. She failed to file 990s for three years straight. As a result, her nonprofit status was revoked by the IRS for at least a year. During that time period, she continued fundraising. She stopped paying utilities at Illick's Mill, despite the plain language of her lease. Her weddings at Illick's Mill also appear to violate the strict language of her lease. She racked up a $128,000 debt to the City that mysteriously went Poof! As Chair of the Parks Committee, she proposed easing up on the booze rules so her nonprofit could benefit. As a Council member, she voted twice to approve City budgets that included $11,000 for heating oil at a nonprofit in which she was financially interested. She threatened to use her powers as a member of Council to keep a new lease from going to that body.

In short, nothing she has posted changes the fact that she engaged in conflicts of interest in violation of the Ethics Code.

The documents she does post raise new questions. Why is it that the 2008 and 2009 tax returns are undated and unsigned? Where are the 2011 and 2012 tax returns? Why is it that the 2010 tax return bears a date of 4/15/14? What authority did she have to host weddings when they appear to have been conducted in violation of the plain language of the lease that she published? Why did she throw her accountant under the bus when it was her own responsibility, as Executive Director, to file those tax returns?

I've got a quote for her.

"We must be careful about what we pretend to be." Kurt Vonnegut, Mother Night. Loosely translated, that means Dolan is the worst kind of phony.

I sent an email to the address in this weekend screed. No response. I called the number. Not in service. Using the Illick's Mill webpage, I emailed Board Chair Andrew Bollinger. Invalid email. I emailed a Board member I know. No answer.

So much for transparency and wanting to answer questions.

Dolan should put down the Bard and pick up the Ethics Code.

She should also resign.

Bill White Nails Karen Dolan

The Morning Call's Bill White, who is much nicer but uglier than I, also has problems with the way Bethlehem City Council member Karen Dolan abused the power of her office to get her way with her Illick's Mill nonprofit. In an email to the Mayor last week, despite knowing that her conduct was under scrutiny, she used these threatening words concerning a lease that asked Illick's Mill to pay something for rent and utilities.

"I will do everything I can to prevent this lease from going to Council."

Talk about conflict of interest.

Blaming me, she stepped off the Illick's Mill Board. She still needs to step down from Council, which she has used to stifle free and open discussion. 

Dolan Does Some Damage Control

After resigning from her Executive Director position at the Illick's Mill, under a cloud of suspicion based upon her own mismanagement and conflicts of interest, Bethlehem City Council member Karen Dolan is doing a bit of damage control. She has told The Express Times' Lynn Olanoff that she's merely trying to save her poor little nonprofit from the vicious world of politics. Of course, I'm in the center of this dark world, as Dolan paints it in version #694 of what has happened.

Here's my response.

This has nothing to do with politics. This has everything to do with expecting elected officials to be loyal to the people instead of whoever pays their salary. The organization has been hurt, not by stories on my blog, but by Dolan's own unethical behavior and mismanagement of the nonprofit.

This is a woman who has told several stories now about what is going on. Let's deal with facts. 1) She failed to file nonprofit tax returns for three years in a row. 2) Her nonprofit status was revoked for at least a year. 3) Her vote on last year's budget was in violation of the Ethics Act because she voted on a matter in which she had a direct financial interest as a paid Executive Director. 4) She continued raising money after her nonprofit status was revoked and gave a misleading interview to The Express Times, falsely claiming to be a nonprofit. 5. She violated the Ethics Act again as recently as last Friday, when she threatened the Mayor concerning a new lease. "I will do everything I can to prevent this lease from going to Council."

Incidentally, her threat to the Mayor, in addition to being a conflict of interest under the Ethics Act, is also an example of exactly how she plays politics.

I find it totally incredible that City officials would send her a letter in 2010 about her unpaid $127,000 debt, threatening to suspend services, and then say nothing more about the situation. That is just unbelievable. She obviously had conversations. What were those conversations? Did the Mayor let her off the hook? If so, why? Who made the decision to write off the debt? Who made the decision to begin supplying her free heating oil? Why was that decision made? Why did she suddenly start advocating for wage hikes in Parks?

The best thing Dolan could do for the public now is to resign. She has abused her office. The people of Bethlehem deserve better than someone who plays petty games to advance causes in which she has an interest.

Updated 9:45 pm: In the Express Times story,  Dolan claims that it makes no difference whether booze is permitted in City parks, as she advocated at a recent meeting, because the Illick's Mill has a liquor license.
Reader Hank_Hill, however, has discovered the license is listed as "inactive" by the state liquor control board. Nonprofits can obtain a "special occasion permit", which is what Illick's Mill has, but it can only be used six times per year. According to the Illick's Mill webpage, it hosts 20 weddings and 100 other social events a year. It would seem that, even if the license were active, the number of weddings hosted are more than what the law allows.

Oopsie.

A Tale of Two Nonprofits

One of the Lehigh Valley's more worthwhile nonprofits is New Bethany Ministries, whose simple goal is "to create opportunities for a secure future for the homeless, hungry, poor and mentally ill of the Lehigh Valley." One of their biggest fundraisers is Luminaria Night. Simple votive candles, inside a white bag, light up the Christmas City each December. More importantly, the money raised helps people with nowhere else to turn. You'd think Bethlehem would go out of its way to help this worthy effort. But Bethany, unlike the Fox Environmental Center (Illick's Mill), has no City Council person at the helm.

Last December, while City Council person Karen Dolan basked in a rent-free Mill, warming up with free heating oil supplied by Parks and Public Property Director Ralph Carp, it was freezing inside the pool house a stone's throw away along Illick's Mill Road. New Bethany's Debbie Delgrosso was shoveling the snow, which the City had not done. Eventually, she got help from some people who stopped by for their luminaries.

Carp also charged New Bethany for the use of the pool house to distribute luminaries.

The difference between these two nonprofits is that one of them is run by a City Council member and one is not.

This kind of favoritism is why Dolan should resign from City Council, where she just happens to chair the Parks Committee.

Dolan's NonProfit Status Revoked For Failure to File Tax Returns

Illick's Mill

Many of you have heard about or visited Illick's Mill. One of Bethlehem's treasures, it's an 1856 grist mill that serves as the centerpiece of a park along the Monocacy Creek. This park was established by the FDR administration during the Great Depression. Today, that historic mill is known as the Fox Environmental Center. It's a nonprofit under the direction of Karen Dolan. A member of City Council since 2006, she is also the Parks' Chair. Must be very convenient. Despite using her elected office to gain favorable treatment, her record is one of mismanagement so bad that she lost nonprofit status for a year. Thanks to a Northampton County Grand Jury, we all know about the abuse at nonprofit National Museum of Industrial History. But the Steel Museum never had its nonprofit status revoked, which happened to Dolan. No elected official is involved in conflicts of interest, which is certainly true of her.

Between 2001 and 2009, Dolan worked to restore the old mill. She had a ready supply of labor in the form of Liberty High School students. After all, she was teaching there. Her husband was a teacher at Bethlehem Vo-Tech, and that school soon began helping with the project, too. The City of Bethlehem also provided a lending hand.

According to the nonprofit webpage, over $1.3 million was raised to restore the mill. How much of that is public money is anybody's case. The most recent 990 (that's a nonprofit tax return) is from 2007. It lists at least $121,000 in public funding in that year alone. But what about subsequent years? Guidestar, an online repository for nonprofit financial records, has nothing beyond 2007. Where are those records?

Perhaps even more troubling than the missing 990s is that Dolan's nonprofit owed $127,000 to Bethlehem. It was reported that way in several city audits. Then suddenly, in 2012, it was just written off with no explanation.

I wanted answers, and Dolan met with me in February.

"We're not the National Museum of Industrial History," she told me. "We've done everything by the book always."

I asked her to show them to me. Specifically, I wanted to know why Guidestar had no record of 990s after 2007.

Dolan handed me a bunch of financial statements. When I pointed out those are not 990s, she told me they are just as good. That may be, but I told Dolan I needed to see the 990s themselves. I wanted to know when they had been filed and why they did not appear at Guidestar.

After her initial attempt to mislead me, Dolan fessed up. She admitted that her nonprofit failed to file 990s in 2008, 2009 or 2010. She blamed her accountant, although she is the Executive Director, and the responsibility is hers. But rather than being responsible, she even executed a Power of Attorney to her accountant.

After three years, the IRS had had enough. Her nonprofit status was revoked on 5/15/11. It remained revoked until 5/15/12. (EIN 23-281225).

Dolan assured me that she raised no money during this time period. But just as she tried to mislead me concerning the 990s, she was dishonest with me about being dormant while the nonprofit status was revoked. The proof of that is an August 15, 2011 account in The Express Times.

There's this:

The organization is opening the center for event rentals as a way to fund the nature programs and the historic building’s upkeep, Dolan said. The three-and-a-half story building can comfortably fit 150 people and rents for $100 an hour or $1,200 for a wedding.

And this:

The center has an annual budget of about a $170,000 from a variety of sources, including rentals, grants, programs, fundraisers and memberships. The mill’s $1.3 million renovation was paid for entirely through grants.

Not only was Dolan raising money while her nonprofit status was revoked, she even insisted that she had a $170,000 budget. She also misled The Express Times into believing that she was at the time a nonprofit.

In the meantime, she managed to run up one hell of a tab with Bethlehem. A $127,000 debt was listed in several independent audits. Then suddenly, in the 2012 independent audit, the debt was marked written off.

What the hell happened?

Dolan insisted to me that she paid every penny owed to the City, but then why did auditors use the term "written off"? Dolan then attempted to tell me that's not what the audit says, but it is. After misleading  me twice, I'm unwilling to take her word unless it is backed up.

The independent audit would lead anyone to conclude that the City views the money owed by Dolan's nonprofit as a bad debt.

Bethlehem resident Steve Antalics raised this very question with Bethlehem City Council on March 3. Dolan had no explanation. Nor did any other member of Council. He was answered with silence.

Antalics also questioned using this nonprofit for weddings, especially since alcohol is consumed.

Instead of answering Antalics, Dolan did something else. You see, she chairs the Parks Committee and decided to convene a hearing to eliminate park regulations banning the use of alcohol at most city park venues. Obviously, her involvement in something that directly impacts her organization, particularly serving alcohol to make money within City-owned parks, is a huge conflict of interest.

Dolan, incidentally, denies that the Illicks Mill is part of Monocacy Park, which is kinda' like arguing that Musikfest is in Hellertown. But this lousy argument enables her to pour booze down the throats of paying wedding guests.

Another conflict of interest for Dolan is that she gets her heating oil for free, courtesy of the City. Just like that. This is what she recently told Antalics as well as me. Antalics sought confirmation from Ralph Carp, the City's Parks and Public Works Director. Carp answered with "No comment", according to Antalics

So basically, you have a City Council member who directs a nonprofit on municipal property. Its status was revoked because she failed to file 990s for three years straight. She pays no rent, and is not even paying for snow removal, heating oil and other services that other nonprofits on municipal property pay. The $127,000 she owed to the City suddenly vanished. She somehow gets herself appointed as Chair of the Parks Committee when her own nonprofit is smack dab in the middle of a park, which she claims is not a park. She decides she wants to relax booze rules in the park because Antalics and others have questioned exactly what kind of alcohol is served at Illick's Mill weddings.

At the last budget cycle, she lobbied to have parks workers paid more money. Last Winter, she started getting free oil. Hmmmm.

Dolan is a walking, talking conflict. Her participation on the Parks Committee is an invitation for trouble. There needs to be a compete accounting of the $127,000 her nonprofit owed to Bethlehem, and why that debt was written off. When she lost her nonprofit status, she continued to raise money and misled the media that she was open for business and should be required to pay the fair market value of rental income during that year. If other nonprofits on City-owned property must pay rent, then she should, too.

I was not going to write this story when I saw her in February, since Dolan broke down, and tearfully told me that the public release of this information would "ruin" her. But then I heard that she was telling other people, including reporters, that I investigated this and found there was "no story." That's yet another lie. The kicker was when she decided to relax booze rules in city parks.

She needs to resign from City Council or her nonprofit. Perhaps both.

Dolan Using Council Position To Enrich Her Nonprofit

I am thoroughly disgusted with Bethlehem City Council member Karen Dolan. Instead of using her public office for the benefit of the people, she's using it to enrich a nonprofit that just happens to employ her as its Executive Director. Dolan wants to relax the alcohol limit at City parks so more people take their weddings to her nonprofit, the Fox Environmental Center, which is located in a city-owned property in a city park.

Believe it or not, Dolan chairs City Council's Parks and Public Properties Committee. Why Council President Willie Reynolds would name a park tenant as chair of the parks committee is mind-boggling. He invited the very conflict that is now occurring.

Dolan's nonprofit might claim to be some sort of environmental center, but its Facebook page paints an entirely different picture. Instead of frogs and turtles, it's a wedding reception venue, the place "where dreams begin." It hosts 20 weddings and 100 other social events each year. It's expensive, too, although I don't have the exact figures.

But there's one little piece of grist stuck in this mill. You see, City rules limit the booze to 7.0%. That covers most beer, but that's about it. City watchdog Steve Antalics reminded Council of this limit a few weeks ago.

This is a problem for Dolan. No booze, no wedding reception. If she wants to continue drawing her salary, she needs to change things pronto.

So on Tuesday night, she took off her nonprofit hat and put on her City Council and Parks Chairman hat. Then according to WFMZ's Randy Kraft, she convened a meeting that supposedly was reviewing City park riules. Surprise, surprise, she now wants more booze in public parks. She's really, really, really, really concerned about the Ice House, located on Sand Island, losing revenue because of the booze prohibition.

Of course, what she's really interested in is making sure that people will continue booking 20 weddings a year at her place. That won't happen unless they can pour booze down their throats.

Dolan's attempt to craft legislation that will help pay her salary is an obvious conflict of interest. Her position as Parks Chair is an obvious conflict of interest.

I will have more to say about Dolan and her nonprofit next week.

Donches Down But Not Out at Steel Museum

Bethlehem's National Museum of Industrial History, known to most as the Steel Museum, announced late Friday that it has "reluctantly" accepted the resignation of its beleaguered Executive Director, Steve Donches. But he will remain on staff and still be paid about half the $200,000 in salary and benefits that was going to the former Bethlehem Steel public relations VP.

Donches salary is still higher than the $70,000 compensation package paid to Charlene Donchez Mowers, who administers Historic Bethlehem Partnership. It is approximately the same as paid to Executive Director Mike Stershic at Discover Lehigh Valley, whose annual revenue tops $3 million.

Donches is being replaced by L. Charles Marcon, who will serve as Interim President and CEO as the Board of Directors ponders the Museum's future.

In late January, a Northampton County Grand Jury recommended big changes at the Steel Museum, including the replacement of Donches. At the time, they noted that Donches' compensation was approximately twice what is paid to the executive directors of similarly situated nonprofits. In a scathing criticism, they called the Museum a "resting home" for "soon to be unemployed officials of the [Bethlehem Steel]Corporation who continued to benefit from high paying salaries, retirement benefits, and other benefits at the expense of the organization."

The Grand Jury also called for changes on the on the Museum Board. They questioned the conflicts of interest policy, especially since board member Lee Butz managed to get nearly $1 million in business from the Museum after being named a director. Marcon came under fire, too, for bidding on construction work at the Museum while serving as a director.

The state Attorney General's Charitable Trusts Section has also been asked to investigate whether to dissolve the museum.

Over the years, this Museum has received public funding, including a $1.4 million state RCAP grant, as well as the donation of artifacts from the Smithsonian. Ironically, there are no Bethlehem Steel exhibits.

Initially, the Steel Museum denied any wrongdoing at all, choosing to blame everything on a "Monday morning quarterbacking" District Attorney.

But Directors belatedly recognize that Morganelli's passing game might be pretty good. In addition to cutting Donches' pay in half, the Board intends to seek partnerships with other groups. Possibilities for this could include Northampton Community College and the Historic Bethlehem Partnership.

The quarterback, John Morganelli, is encouraged.

"I believe that the demotion of Mr. Donches is recognition and validation of the recommendations and findings made by the Grand Jury. It is recognition that this organization has been mismanaged, wasting millions of dollars of donated money and public funds. I believe that but for the work of the Grand Jury, Mr. Donches and this board would have continued on their failed path and the museum project would have ultimately crashed and never brought to completion. Thanks to the bright spotlight that the grand jury cast on them, they have now been jump started to get realistic about the scope of the project and their wasteful spending. Hopefully, after the Attorney General weighs in in whatever manner they so choose if any, this project will be brought to a successful conclusion."

NonProfits Need Tighter Scrutiny

On Thursday, a Northampton County Grand Jury painted a disturbing picture of the Steel Museum, which after 17 years, has yet to open its doors. It pays former Bethlehem Steel V.P. Steve Donches twice the going rate for a executive director. Board director Lee Butz has directed $2.8 million to his own construction management firm. But instead of being embarrassed by these findings, Donches and his Board have circled the wagons, accusing Northampton County District Attorney John Morganelli of  "personal antagonism." Their reaction demonstrates the need for much closer scrutiny of area nonprofits.

First, salaries need to be monitored more closely by the state. Former Properties of Merit Executive Director Sam Bennett once commanded an annual salary of $110,000 at a nonprofit whose annual budget was only $351,000.

Second, service on a non-profit board should never be a vehicle for personal gain. It should instead be an opportunity for a director to give back to the community/institution/organization. When personal profit becomes the motive, board decisions are skewed in bizarre and negative ways. If personal gain is a by-product of "good works" on a non-profit board, that board member should donate back the personal gain.

Third, service on a non-profit board should be term limited. This prevents any one incumbent from becoming an unequal force and influence over other board members. It also prevents the non-profit from becoming too comfortable and chummy. Board members should be prohibited from advertising membership on a board in any way that might lead to personal financial gain. They should also be barred from accepting contracts with or having a financial interest in any entity that does business with the nonprofit.

Donches and his supporters have pointed to a bad economy as a reason for his organization's failure. But over less time and in the same economy, Artsquest has blossomed on the City's south side. Even though its focus has been music, it has done more to preserve this area's industrial history than the foundering Museum. It is the logical and proven choice for preserving Bethlehem Steel history, and can accomplish that without giving any golden parachutes to the former steel execs whose bad business decisions resulted in the collapse of the area's largest employer.

Notre Dame High School Plays a Little Politics

Notre Dame High School, a Catholic school located in Bethlehem Township, has linked to a radio program hosted by state representative candidate Ron Shegda. "Our Speech & Debate Moderator, Mr. Sal Rizzo, appeared on "The Two Things We Don't Talk About Show" hosted by Ron Shegda on WGPA (1100 AM). If you missed the live broadcast you may find it at http://www.ustream.tv/recorded/8692201." That video link, which can also be found here, not only features a political candidate, but contains four signs endorsing his house race.

By linking to this program, Notre Dame High School is unwittingly helping Shegda's campaign in violation of IRS rules against endorsements, contributions and bias.

I've contacted the Diocese of Allentown, and if they have anything to say, I'll pass it along.

Midnight Update: I never heard back from the Diocese of Allentown. They must be too busy praying. But Notre Dame High School did remove the Shegda link soon after this blog was published.

Joe Hilliard: Specter Slayer, Topples County Gov't With a Slice of Pizza

Over the past few days, I've told you all about unelected LV Tea Party leader Kim Schmidtner. But I've been unfair because I left out the man behind the woman, unelected LV Tea Party leader Joe Hilliard.

Who the hell is Joe Hilliard? Let me tell you a little story. Not long ago, Charlie Dent sponsored the first ever Lehigh Valley Republican Convention at the Northampton Community Center, footing the bill and inviting ALL Republicans. Despite being invited as a registered Republican and committeeman, Joe just had to organize a protest rally against Charlie Dent at the event.

That's how Joe rolls. But enough from me. Let's hear about Joe from Joe himself, with his characteristic modesty:

"I have been blessed to network with thousands of people in a fairly effective coalition. I have had the privilege to help start about 20 limited government groups. It is always amazing when people I don't even know call or email me for advice. I am networked with many, many more groups across the state and even in other states. Senator Specter switched party because of the "censure movement" strategically initiated by a very small group. We have had an impact on the floor of the Pennsylvania legislature. We have implemented a number of initiatives and mechanisms that will have a big impact in politics. This includes legislative initiatives, legal strategies, media outlets, etc. More will be implemented this year. Some, surprisingly, have even been my suggestions and strategy ideas.

"More and more people acknowledge that raising money and handing out literature for candidates is not a solution to our problems.

"We are having impacts at the local government level which include defeating illegal bond issues and exposing fiscal 'smoke and mirrors'. In fact, such an effort led to a total collapse of one county government in our state - and exposed a huge nest of corruption which has led to many indictments including a few sitting judges. It is amazing what can be accomplished by following a few simple principles and pulling back the curtain to expose politicians and the games they play. I was there at the beginning of that effort. In fact, it all started with a meeting with myself and one county resident over a couple of slices of pizza. This turned into a two year battle with a coalition. And, because principled Republicans stepped forward who refused to play the game, there were even some electoral successes in this heavily Democrat county. There will be more such efforts coming in the future.

"I could continue, but my efforts do not need to be detailed as some sort of resume, because I seek no compensation nor recognition."

Then Joe continues anyway:

"We must continue doing what we have been, because we are having a big impact on politics. And, as I keep reminding people, we haven't even done that much yet! Our precinct organizing plan is the foundation for us to increase our effectiveness. Running for committee spots is one piece of that foundation. Our meeting will cover ALL of the aspects of what we hope to accomplish in the near future - which is changing the rules of the game because the political game has failed all of us."

Imagine that! In addition to being the Specter Slayer, he was able to topple a County government somewhere, armed with only a slice of pizza.

Unfortunately, LC Comm'rs Chair Dean Browning, a Republican, is in Joe's cross-hairs. You see, Dean proposed giving the Vice Chairmanship to that dirty, no-good Democrat, Dan McCarthy. It made no difference to Joe that Dan received a pretty good rating from the Tea Party. Unelected leader Joe delivered this ominous threat, ex cathedra, to Browning:

"I can only warn, as I have done consistently for the last several years, about this rapidly growing sentiment which, frankly, has shocked even me with the speed of its growth and strength. Those who get on board will be okay. Those who don’t…. well time will tell. And it won’t only be during an election cycle. Constant HUMILIATION over a four year term will take its toll on those who are a problem. We will use our rapidly growing email lists and hand out thousands of flyers about such “Republicans” for the sole purpose to inform the voters about those who truly represent taxpayers and those who sell out to the Democrats and Big Government groups who feed at the government trough at the expense of taxpayers. And no, we won’t be coming to meetings before a vote to wage this battle at the podium. This battle will be fought before hand to some extent, but ESPECIALLY after such votes are cast."

In Joe's world, none of this is political activity. The IRS has a slightly different view:

"Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes. "

Properties of Merit Broke

Remember Properties of Merit (POM)? In happier times, it raked in nearly all of its annual $351 thousand budget in state and other public money. Nearly 1/3 of that, $110 thousand, went right into executive director Sam Bennett's pocket. Of course, she helped set that salary herself. Hey, you think it's easy handing out garden rakes?

Sam is no longer with POM. She's in D.C. No, she was not elected to Congress. She now heads up yet another nonprofit that promotes women in politics.

Looks like she jumped ship just in time, too, because funding at POM has dried up. S I tried calling several times last week, left several messages, and no one has returned my calls, even when I pose as Ed Rendell. I've been told that its two staff members have been laid off and the office is closed. No money. Communities planning on a program this year are still wondering what has happened to their ballots.

So if you're expecting a golden garden rake, better pick one up at a yard sale.

Update: We're Still Kicking! Just got off the horn with John M. Krumenacker, President of POM's Board. He tells me that POM is currently experiencing a cash crunch, but it's temporary. He expects that the staff will return and is just putting the finishing touches on a contract for a new Executive Director.