December 13, 2008

What's an SEIU?

With the Blagojevich story, the acronym SEIU has been cropping up a lot. Turns out it's a union -- a very large union with political clout. From the Wall Street Journal:
Blagojevich and Union Have Longstanding Ties
Allegations that Illinois Gov. Rod Blagojevich approached the nation's largest union seeking help in a complex pay-for-play scheme involving an open Senate seat are the latest episode in a long, mutually beneficial relationship between the governor and the powerful Service Employees International Union.

The two-million member union had long been a big political backer of Mr. Blagojevich, who helped it organize workers throughout the state, sometimes over the objections of competing unions.

The relationship, while not illegal or even unusual for the SEIU, may help explain why the union finds itself involved with a federal criminal investigation against Mr. Blagojevich. The governor was arrested this week after federal authorities issued a complaint against him which, among other things, said his office suggested a deal might be worked out in which he would be given a union job in exchange for naming a labor-friendly senator to fill the vacancy left by President-elect Barack Obama.
Well, it seems that another branch of this union is finding itself in curious straits. From the L.A. Times:
Union-founded nonprofit spent zero on its charitable purpose in two years
A nonprofit organization founded by California's largest union local 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.

Charity watchdogs say that nonprofits should never have zero program expenses in two successive years and that well-performing charities direct at least 70% of their annual spending to their charitable purpose.

"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.
Charity Navigator is a good site if you are interested in contributing or if you have been solicited. Check it out here: Charity Navigator Posted by DaveH at December 13, 2008 10:13 PM
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