Bill Clinton Responds to the NYT's 'Unease' About Foundation's Finances

[elehhhhna]

6. HERE's the money quote that startled me

The reporting requirements on our tax forms, called 990s, can be misleading as to what is actually going on. Here’s why. When someone makes a multi-year commitment to the Foundation, we have to report it all in the year it was made. In 2005 and 2006 as a result of multi-year commitments, the Foundation reported a surplus of $102,800,000 though we collected nowhere near that. In later years, as the money came in to cover our budgets, we were required to report the spending but not the cash inflow. Also, if someone makes a commitment that he or she later has to withdraw we are required to report that as a loss, though we never had the money in the first place and didn’t need it to meet our budget. In other words, for any foundation with a substantial number of multi-year commitments, the 990s will often indicate that we have more or less money than is actually in our accounts.



WTF? This is ENRON accounting and makes no sense. Does the multi-year commitment entity DEDUCT the whole promised amount in the first year? If so this is lends itself to tax fraud. BIGTIME. Take the deduction then maybe pay them over the years? WHAT COULD POSSIBLY GO WRONG?!!!