National
NOM president’s 80-hour workweek?
IRS forms raise questions, reveal Brown’s $253,000 salary
NOM President Brian Brown (Washington Blade file photo by Michael Key)
In its recently released IRS 990 reports for 2011, the National Organization for Marriage says its president Brian Brown received a salary and benefits package totaling $253,917 and works an average of 80 hours a week as the head of NOM and its affiliated charitable arm, the NOM Education Fund.
D.C. attorney Marcus Owens, a nationally recognized expert on 990 reporting requirements who formerly headed the IRS division overseeing tax-exempt organizations, told the Blade that claims of an 80-hour work week could raise a red flag for the IRS and possibly prompt the tax agency to conduct an audit of NOM.
“Nobody works 80 hours a week on something like this,” Owens said.
But NOM communications director Thomas Peters said in a statement released to the Blade that Brown often puts in more than 80 hours in a week.
“Since no CEO punches a time clock, the intent of the completed forms is to show that Mr. Brown works tirelessly for both NOM’s c4 (through which he is paid) and the c3,” he said.
“In fact there are many weeks he works in excess of 80 hours for NOM while others are certainly less than 80 hours,” Peters said. “Only during the rare vacation does he work less than 40 hours in a week.”
Since its founding in 2008, NOM has emerged as the leading organization opposing legalization of marriage for same-sex couples. It has raised millions of dollars for state ballot measures seeking to ban same-sex marriage.
Peters was referring to the IRS tax code that classifies tax-exempt charitable organizations as a 501 (c)(3) organization, which allows contributors to write off their donations as a tax deduction; and a tax-exempt political organization, like NOM, Inc., which is listed as a 501 (c)(4) group, whose contributors cannot write off their donations.
Owens said groups like NOM that have overlapping staffs for their c3 and c4 entities and where the two entities share the same office are required to keep careful records that separate their expenses and income and ensure that the c3 group doesn’t subsidize the c4 group.
Since the c3 group receives donations that are tax deductible it usually has an easier task of raising money than the c4 group, Owens said. He said the c4 group is allowed to subsidize the c3 group but not vice versa.
“What I advise organizations when they have that sort of dual structure is to make it clear on the 990 that they do track expenses for each organization because otherwise you’re setting yourself up for speculation and a possible IRS audit just to see what’s going on,” he said. “There should be a cost sharing arrangement between the two organizations and employees ought to be keeping time sheets to show which hat they’re wearing when they do something.”
The 990 forms filed by NOM for 2011 show both of its entities are located in the same suite of offices on K Street, N.W.
Owens confirmed that NOM spokesperson Peters was correct when he told the Blade in an earlier statement that gay rights advocate and NOM critic Fred Karger issued a press release on Jan. 30 that incorrectly claimed that Brown’s salary and benefits exceeded $500,000. Owens noted that Karger apparently misread NOM’s 2011 990 form for its c3 NOM Education Fund.
All 990 forms have two columns for reporting salary and compensation – one for the organization for which the 990 applies and another column for income and compensation from “related organizations.” NOM’s 990 report for the c3 Education Fund group includes an entry of $230,000 in compensation and $23,917 in “other” compensation, such as benefits, in the column designated for “related organizations,” which, in this case, means salary and benefits from NOM, Inc., the c4 entity.
“It can get pretty hard to understand,” said Owens, who noted that understanding the 990 forms is difficult for the untrained eye.
“Fred Karger has made another embarrassing mistake, which is typical of someone whose stock and trade is the reckless charge,” Peters said in the earlier statement.
Karger, who filed an ethics complaint against NOM before the Maine election regulatory agency in 2009 that led to a finding of a campaign reporting violation, said it was NOM that has been reckless in “concealing” its finances.
“They stonewall as much as they can until they’re forced to release information,” he said.
Peters said NOM believes its 990 reports for 2011 are in proper order.
“If the IRS has any questions about this, we will be happy to discuss it with them,” he said. “If they inquire we will certainly take the opportunity to ask them about the status of the criminal investigation into NOM’s stolen income tax return, which appears to have come from the IRS and given to our opponents.”
He was referring to a NOM IRS filing that was leaked to the Human Rights Campaign, the national LGBT advocacy group that released the leaked information that caused embarrassment for NOM.
The Comings & Goings column is about sharing the professional successes of our community. We want to recognize those landing new jobs, new clients for their business, joining boards of organizations and other achievements. Please share your successes with us at [email protected].
Congratulations to Gil Pontes III on his recent appointment to the Financial Advisory Board for the City of Wilton Manors, Fla. Upon being appointed he said, “I’m honored to join the Financial Advisory Board for the City of Wilton Manors at such an important moment for our community. In my role as Executive Director of the NextGen Chamber of Commerce, I spend much of my time focused on economic growth, fiscal sustainability, and the long-term competitiveness of emerging business leaders. I look forward to bringing that perspective to Wilton Manors — helping ensure responsible stewardship of public resources while supporting a vibrant, inclusive local economy.”
Pontes is a nonprofit executive with years of development, operations, budget, management, and strategic planning experience in 501(c)(3), 501(c)(4), and political organizations. Pontes is currently executive director of NextGen, Chamber of Commerce. NextGen Chamber’s mission is to “empower emerging business leaders by generating insights, encouraging engagement, and nurturing leadership development to shape the future economy.” Prior to that he served as managing director of The Nora Project, and director of development also at The Nora Project. He has held a number of other positions including Major Gifts Officer, Thundermist Health Center, and has worked in both real estate and banking including as Business Solutions Adviser, Ironwood Financial. For three years he was a Selectman, Town of Berkley, Mass. In that role, he managed HR and general governance for town government. There were 200+ staff and 6,500 constituents. He balanced a $20,000,000 budget annually, established an Economic Development Committee, and hired the first town administrator.
Pontes earned his bachelor’s degree in political science from the University of Massachusetts, Dartmouth.
Kansas
ACLU sues Kansas over law invalidating trans residents’ IDs
A new Kansas bill requires transgender residents to have their driver’s licenses reflect their sex assigned at birth, invalidating current licenses.
Transgender people across Kansas received letters in the mail on Wednesday demanding the immediate surrender of their driver’s licenses following passage of one of the harshest transgender bathroom bans in the nation. Now the American Civil Liberties Union is filing a lawsuit to block the ban and protect transgender residents from what advocates describe as “sweeping” and “punitive” consequences.
Independent journalist Erin Reed broke the story Wednesday after lawmakers approved House Substitute for Senate Bill 244. In her reporting, Reed included a photo of the letter sent to transgender Kansans, requiring them to obtain a driver’s license that reflects their sex assigned at birth rather than the gender with which they identify.
According to the reporting, transgender Kansans must surrender their driver’s licenses and that their current credentials — regardless of expiration date — will be considered invalid upon the law’s publication. The move effectively nullifies previously issued identification documents, creating immediate uncertainty for those impacted.
House Substitute for Senate Bill 244 also stipulates that any transgender person caught driving without a valid license could face a class B misdemeanor, punishable by up to six months in jail and a $1,000 fine. That potential penalty adds a criminal dimension to what began as an administrative action. It also compounds the legal risks for transgender Kansans, as the state already requires county jails to house inmates according to sex assigned at birth — a policy that advocates say can place transgender detainees at heightened risk.
Beyond identification issues, SB 244 not only bans transgender people from using restrooms that match their gender identity in government buildings — including libraries, courthouses, state parks, hospitals, and interstate rest stops — with the possibility for criminal penalties, but also allows for what critics have described as a “bathroom bounty hunter” provision. The measure permits anyone who encounters a transgender person in a restroom — including potentially in private businesses — to sue them for large sums of money, dramatically expanding the scope of enforcement beyond government authorities.
The lawsuit challenging SB 244 was filed today in the District Court of Douglas County on behalf of anonymous plaintiffs Daniel Doe and Matthew Moe by the American Civil Liberties Union, the ACLU of Kansas, and Ballard Spahr LLP. The complaint argues that SB 244 violates the Kansas Constitution’s protections for personal autonomy, privacy, equality under the law, due process, and freedom of speech.
Additionally, the American Civil Liberties Union filed a temporary restraining order on behalf of the anonymous plaintiffs, arguing that the order — followed by a temporary injunction — is necessary to prevent the “irreparable harm” that would result from SB 244.
State Rep. Abi Boatman, a Wichita Democrat and the only transgender member of the Kansas Legislature, told the Kansas City Star on Wednesday that “persecution is the point.”
“This legislation is a direct attack on the dignity and humanity of transgender Kansans,” said Monica Bennett, legal director of the ACLU of Kansas. “It undermines our state’s strong constitutional protections against government overreach and persecution.”
“SB 244 is a cruel and craven threat to public safety all in the name of fostering fear, division, and paranoia,” said Harper Seldin, senior staff attorney for the ACLU’s LGBTQ & HIV Rights Project. “The invalidation of state-issued IDs threatens to out transgender people against their will every time they apply for a job, rent an apartment, or interact with police. Taken as a whole, SB 244 is a transparent attempt to deny transgender people autonomy over their own identities and push them out of public life altogether.”
“SB 244 presents a state-sanctioned attack on transgender people aimed at silencing, dehumanizing, and alienating Kansans whose gender identity does not conform to the state legislature’s preferences,” said Heather St. Clair, a Ballard Spahr litigator working on the case. “Ballard Spahr is committed to standing with the ACLU and the plaintiffs in fighting on behalf of transgender Kansans for a remedy against the injustices presented by SB 244, and is dedicated to protecting the constitutional rights jeopardized by this new law.”
National
After layoffs at Advocate, parent company acquires ‘Them’ from Conde Nast
Top editorial staff let go last week
Former staff members at the Advocate and Out magazines revealed that parent company Equalpride laid off a number of employees late last week.
Those let go included Advocate editor-in-chief Alex Cooper, Pride.com editor-in-chief Rachel Shatto, brand partnerships manager Erin Manley, community editor Marie-Adélina de la Ferriére, and Out magazine staff writers Moises Mendez and Bernardo Sim, according to a report in Hollywood Reporter.
Cooper, who joined the company in 2021, posted to social media that, “Few people have had the privilege of leading this legendary LGBTQ+ news outlet, and I’m deeply honored to have been one of them. To my team: thank you for the last four years. You’ve been the best. For those also affected today, please let me know how I can support you.”
The Advocate’s PR firm when reached by the Blade said it no longer represents the company. Emails to the Advocate went unanswered.
Equalpride on Friday announced it acquired “Them,” a digital LGBTQ outlet founded in 2017 by Conde Nast.
“Equalpride exists to elevate, celebrate and protect LGBTQ+ storytelling at scale,” Equalpride CEO Mark Berryhill said according to Hollywood Reporter. “By combining the strengths of our brands with this respected digital platform, we’re creating a unified ecosystem that delivers even more impact for our audiences, advertisers, and community partners.”
It’s not clear if “Them” staff would take over editorial responsibilities for the Advocate and Out.
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