Al Sharpton’s Nonprofit Group National Action Network Falls Into Financial Crisis
Al Sharpton’s nonprofit organization, National Action Network (NAN), is in hot water with the government for dodging payroll taxes and “related interest and penalties”, reports MSN Money.
The NAN, which has been vocal in the wake of the Zimmerman trial, owes nearly $880,000 in income tax to New York State and $2.6 million to the IRS. Strangely enough, The New York Post reports, the nonprofit group still pays Sharpton nearly $242,000 with perks including first-class travel. Rev. Sharpton has also been an MSNBC anchor since 2011.
“He could really get into a lot of trouble,” Daniel Borocoff of Charity Watch told MSN Money, “It’s a red flag that the group may go under.”
In 2011, Tamika Mallory, the executive director of NAN, claimed that the board of directors voted to resolve its financial woes; clearly, this has not happened yet. The year before that, NAN raked in $3 million in donations that was supposed to pay off all back state taxes. Again, this apparently did not happen.
NAN not only owes the state and IRS, but it is also owes Sharpton $111,223. He provided the company loans “due to deficits,” according to The Smoking Gun.
However in 2012, NAN showed confidence that its financial quicksand will be solidified soon. “[T]he Organization has been in the process of negotiating an offer in compromise to settle all payroll taxes,” Black Enterprise notes. “The Organization feels that that the likelihood of a favorable outcome in highly likely.”
It is unclear, MSN Money says, if NAN still feels the same way today.
This is not the first time Rev. Sharpton has fallen into economic trouble. In 1993, he pleaded guilty to a misdemeanor tax crime to avoid felony charges, The Post says. “In the years since, the IRS has issued a dozen liens against Shapton’s groups, including one against him for $538,653 in 2010.”
Earlier this year, Sharpton met with Obama to discuss plans to strengthen the weak economy for the middle class. Some are wondering, with his baggage of bad financial history himself, what kind of advice can he offer the president?
In any case, despite NAN’s economic crisis, they plan to organize an event on August 24th to commemorate the 50th anniversary of Martin Luther King’s famous March on Washington, reports MSN Money.