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Jesse Jackson New Chief Financial Officer, Billy R

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Jesse Jackson New Chief Financial Officer, Billy R Czi CITIZENSHIPe EDUCATIOX FUXD Financial Report to Donors Citizenship Education Fund, Inc. I Rainbow Push Coalition, Inc Rev. Jesse L. Jackson, Sr. Founder & CEO Prepared by BiUy R. Owens Chief Financial Officer February 26,2001 ~+LERIEc JOHNSON, PH D JONATHAY JACKSOS PHYLLISLYNCH LUCILLEDOBBINS JERRY BELL Interim Esecutive Director Board President Board Vice-President Board Treasurer Bodrd Secretary Legal Counsel - Sdley 8i Austin JACQUELINE JKXSON YUSEF JACKSON, ESQ J4hlC1: M.+THIS,ESQ PERCYSt'rro.;, ESQ Mdver, Brown & Platt Board Member Board Attorney Board Member Boud Member A X~n-Pariis~n,Non-Profit Org3nizmon Serving Citizens e -* 7- CITIZENSHIPEDUCATION FUXDe February 26,2001 To: Donors of Citizenship Education Fund Wall Street Project I This report has been prepared to present information about the financial status of the Citizenship Education Fund, hc. and RainbowLPush Coalition, Inc. Rainbow/PUSH and its related organizations were all founded by the Reverend Jesse L. Jackson. Sr. and are separate and distinct entities. They have separate board of directors; separate missions and purposes, different tax statuses and maintain separate accounting records. The financial statements are audited by certified public accountants who issued unqualified opinions. The organizations and their tax status are as follows: RainbowPush Coalition, Inc. 501(c)4 for State; Taxable for Federal (no request made for recognition for tax exempt status) Citizenship Education Fund, Inc. 501(c)3 PUSH for Excellence 5 0 1(c)3 People United To Serve Humanity Tax Exempt Illinois Religious Organization 1. Rainbowhh's mission is fight for the civil, political, and social rights of all people. Funds raised by RainbowRUSH are used to fimd the following programs: a Constituent Services - Complaint area for discrimination cases of all types b. Kid Care - helps poor parents obtain health insurance for their children c. PUSH For Life - HWAIDS Advocacy Program d. 1,000 Churches Connected - connecting 50 churches in twenty major markets to promote community-based economic literacy e. Prison Outpost Ministry - aid prisioners in transibon back to society f. Chicago Headquarters 2. Citizenship Education Fund's mission is to conduct research and education activities. Funds rased by CEF are used to fund the following programs: a. Chicago Headquarters b. Wall Street Project Office C. Public Policy Institute d. Voter registration and education programs e. Stock Market Game - introduces teenagers to stock markets f National Reclaim Our Youth Crusade V.\LERIE c JOHNSON, PH D JONATHAN JACKSON PHYLLISLYNCH LUCILLEDOBBINS JERRY BELL Interim Executive Director Board President Board Vice-president Board Treasurer Board Secretary Leg31 Counsel - Sidlep & Austin JACQUELINE JACKSON YUSEF JACKSON, ESQ JANICE A AT HIS, ESQ PERCYSL'TTON, ESQ Mayer. Brown & Platt Board Member Board Attorney Board Member Board Member ~~ A Non-Partisan, Non-Profit Organization Serving Cltitens g. JMEIC - Juvenile mentoring and early intervention coalition h. Education finance reform 3. People United to Serve Humanity (a religious organization) - weekly meetings combine biblical scripture with current events. People United is fhded through weekly collections and building fimd donations. a Rev. Jackson is employed by People United. His salary is charged to RainbowRush (42%) and CEF (58%). He receives no other salary fiom any of the other organizations. b. People United owns corporate headquarters building in Chicago. 90% of the building costs are charged to Rainbow and CEF. 4. Push Excel grants scholarships to needy college students. In order to streamline operations consideration is being given to merging CEF and Push Excel. Push Excel granted 71 scholarships in 2000 valued at $123,000. - 5. Revenues for all organizations come fiom conference sponsorships, donations, private grants, memberships and a small amount from other sources. Rainbow holds one hdraiser per year, its annual conference. CEF currently holds about 10 per each year; one for each bureau and one in New Orleans. Push Excel hosts one fundraker, the Martin Luther King Breakfast. 6. Travel. Five to thirty-five staff members travel to regional conferences since the on-site staff is far too small to cover them. Current policy requires double room occupancy for most st&. All air travel for staff, except for Rev. Jackson, is booked as coach fares. Rev. Jackson's travel is charged to Rainbow and CEF depending on the purpose of the travel. He usually travels with one person. 7. Consulting. The consulting fees on the CEF 1999 Fonn 990 tax return of $1,307,393 includes outside consulting fees of $428,870 and management and general overhead expenses of $878,523 charged by Rainbowhsh. The management fee includes expenses for the finance staff, general counsel and chief of st&, communications department, fhd raising, president's office, , switchboard, correspondence office. The management fees charged to CEF for year 2000 totals $940,529. For additional information, I have provided under separate tab financial'infonnation on RainbowRUSH, CEF, People United and Push Excel. We appreciate your support of our organizations and will continue to manage and prudently spend the resources you provided to support our missions in the most effective manner. Respectively submitted, 933%BillyR Owens Chief Financial Officer @ RAINBOWA'USH AND ITS RELATED ORGANIZATIONS Management Information Only Preliminary and Unaudited Preliminary & Unaudited (Unaudited) Revenues Revenues 2000 t 999 Rainbow/Push Related Organizations Rainbowfish Coalition, Inc. 5,273,422 4,950,609 Citizenship Education Fund, Inc. 10,084,964 9.92 8,936 People United to Serve Humanity 1,s 10,759 1,149.334 Push for Excellence 199,276 97,604 a 17.068.42 1 16,126,483 N P*b fii Rev. Jackson's Annual Salary - Calendar Year 2000 120,000 120,000 PRIB (Paid by People United to Serve Humanity) OLrf 'Q v Three Highest Salaries - Calendar Year 2000 All Organizations P Highest 137,500 rn 2nd Highest 120,000 1411 3rd Highest I 10,000 Total Number of Employees - All Locations and All Organizations Full Time 85 Part Time 17 Total 102 Average Annual Salary - All Locations and All Organizations 42,145 Consulting Fees CEF 914.34 1 428,870 Rainbow 413.281 23 0,966 Total 1 J27.622 659.836 Travel CEF 55229 1 739,843 Rainbow 762,63 1 537.022 Total I ,3 14,922 1,276,865 Rev. Jesse L. Jackson's Organizational Travel CEF 126,06 1 250,604 Rainbow 48 8-3 5 8 160,252 Total 614.4 19 410.856 RevJacksons' Salary and Organizational Travel as Percent of Donations Total Donations ' 16,218,421 1 6,126,483 Salary and Travel 734,4 19 530,856 Salary and Travel as Percent of Donations 4.5% 3.3% Conferences CEF 3,065,382 1,646,666 Rainbow 1,046,328 650,953 Total 4,111,710 2,297.6 19 Jackson Will Amend Tax Return to Include Mistress $32.9 The Associated Press Weddir 5-- E-Mail This Article Thursday, March 8,2001; 1:34 PM -Plannir a Printer-Friendlv Version -Softw 2 Front rm Subscribe to The Post CHICAGO - The Rev. Jesse Political News Jackson said Thursday he will amend the tax return of one of his 9 Elections -w- The Issues nonprofit groups to reflect money paid to a staffer who was his mistress. Federal Page SEAR( Polls The staffer, Karin Stanford, was not included on the 1999 tax return Columns - Cartoons filed by the Citizenship Education Fund. Other staff members' names also were omitted. Jackson called the omissions inadvertent. r Live Online E Nei Online Extras Photo Galleries "It was an oversight. It is in the process of being corrected," Billy PO! Video - Audio 'Owens, chief financial officer for RainbowRUSH, said at a news c conference Thursday. -Adva a. .,. r PARTNERS Jackson has been under scrutiny since his RainbowPUSH Coalition Politics acknowledged in January that it paid $35,000 in severance pay to You Liv Stanford, with whom Jackson had a child. I Enter st COng~SSia~l Jackson told the Chicago Sun-Times that he lives modestly despite or ZIP c I Quarterly Inc. estimating his annual income at about $430,000. "I've made most of my money through outside speaking engagements, THE - BRITAN Nl CAGOM which I don't do as much of as I used to, and my CNN program,'' PKES * Jackson said. "We've always made the choice to live rather modestly. I AYPC didn't have to do that, but that's a choice my family made." INrr i He said his wife, Jacqueline Jackson, manages his family's affairs and said he doesn't have a checking account or a credit card. J "She runs that," Jackson said. "That's what she does. I have to borrow money from her to get a soft drink." Jackson's four organizations have distinct agendas and budgets, but they share some board members, top staffers and office space, according to a report-he released this week. - - The 1999 return for the Citizenship Education Fund listed "none" in the section asking for the names of any employee making more than 31810 1 tL 8) Exhibit i! .II Page -2 of A pages Jackson Will Amend Tax Return to Include Mistress (washingtonpost.com) Page 2 of 2 $50,000. Stanford, whose salary was $120,000 that year, should have been included on the list, though a spokesman for Jackson said it was not clear if she was paid the full amount. The group will file an amended return including Stanford's name and those of other staff members who had been omitted, said Billy R. Owens, chief financial officer for Jackson's nonprofit groups. 0 2001 The Associated Press HOMES JOBS 1 CARS Complete coverage Jackson opens urn PUSH finances March 06 2001 Jackson opens up on PUSH AnewsDaper of ill repute aains some finances credibility p%qA%$+ January 25 2001 TRiBUI Out of seclusion.
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