Los Angeles Times

SEIU-founded nonprofit spent zero on its charitable purpose in two years

A nonprofit organization founded by California’s largest union local [Service Employees International Union] reported spending nothing on its charitable purpose — to develop housing for low-income workers — during at least two of the four years it has been operating, federal records show. The charity, launched by a scandal-ridden Los Angeles chapter of the Service Employees International Union, had total expenses of about $165,000 for 2005 and 2006, and all of the money went to consulting fees, insurance costs and other overhead, according to its Internal Revenue Service filings.

“Of the 5,000-plus charities we’ve looked at, I don’t think we’ve ever seen one that didn’t spend anything on its charitable programs,” said Sandra Miniutti, vice president of Charity Navigator, an online rating service

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