Mark Dayton signed into law Tuesday legislation that shields Minnesota nonprofits which are being asked to return millions in tainted donations, in cases when time had elapsed after the donations were made and the money spent. The retroactive legislation overwhelmingly endorsed in House and Senate votes became controversial only in the days leading up to Governor Dayton’s signature – perhaps because after years of budget cuts at newspapers, no one was left to write thoughtful pieces about what soon would be public policy. According to the StarTribune, it was discovered this legislation seriously affects the potential for collection attempts such as those to existing clawback cases stemming from the Petters bankruptcy, in recovery of losses for victims of a Ponzi scheme like Tom Petters’; Petters’ alleged co-conspirator Frank Vennes Jr., their associates, and Mr. Petters made as much as $425 million in tainted donations, bankruptcy trustee Doug Kelley estimated.
The issue is tainted donations. Charities asked for a pass because they claim that they lack the resources to do due diligence on all of their contributors and, in some cases, already have unwittingly spent the money by the time criminal activity is associated with the donation. Because nonprofits did not have the time or staff that the rest of the world should have to look into why the return on investments were so high? Does the law shield Minnesota nonprofits, but the nonprofits from other states are not shielded? After years of having news presented with a local angle, thinking had developed here that some were better than others – in need of a shield as this law does give extended immunity to charitable and religious organizations that take donations and contributions unwittingly which are a result of ill-gotten gains.
Estimating the sought contributions total as much as $445 million in the case of Petters, Kelley said those funds should be returned to to creditors of Petters’ business operations as well as the investors who were victims of Petters’ $3.65 billion scheme. Under the signed law, only half of the $445 million may be collectible under the new law.
The morality of keeping tainted money has nothing to do with the number of years after donations were made and the money spent, unwittingly. There is a lot of irony here to have a governor who comes from one of the most generous families in Minesota history to be left to decide the issue of tainted money. Legislative supporters of the bill – charitable groups like Big Brothers/Big Sisters of the Twin Cities (Attorney Robert McCollum who sits on the board of Big Brothers Big Sisters of the Twin Cities called Dayton’s action “a significant day in the history of the state for nonprofits.”) and chemical addiction treatment program Minnesota Teen Challenge, along with representatives of bankruptcy trustee Doug Kelley – were in the governor’s office Tuesday morning as the governor considered his last-minute options on the bill.
So no legislator knew how the issue of the rape of Europa was handled at the end of WW II, concerning stolen art? So legislators have no idea about the current state of fund-raising? A charity keeps dossiers on who their benefactors are before the head of a charity solicits a gift. There is a bit of irony of the timing of this piece, as Benedict XVI last week referred to the reality of “human evil and ignorance,” within even his church. He was alluding to a cozy relationship some clergy appear to have in Mexico with the overlords of drug cartels who sometimes give money to the church to demonstrate their Catholic bona fides. Maybe a lot like Tom Petters. So when it comes to inheritance, birthrights, and being the receiver of goodness, how are the Big Brothers/Big Sisters going to teach these kids how to live when faced with the hard decisions. Because Minnesota nonprofits did not have the time or staff or money that the rest of the world was expected to have to look into why the return on investments were so high? After years of having news presented with a local angle, thinking had developed here that some were better than others, and a law was need to shield Minnesota nonprofits – without comment on nonprofits from other states.
“Organizations can now move forward without the fear that they one day may have to pay back what was donated to them,” Attorney McCollum who does volunteer his time to sit on the board of Big Brothers Big Sisters of the Twin Cities, said in a StarTribune interview Tuesday. The signed legislation makes organizations liable to return tainted contributions received unwittingly within two years of a donation. The StarTribune vaguely stated that any questionable contributions — ill-gotten gains –discovered after two years are not affected by the law. In an e-mail Tuesday, bankruptcy trustee Doug Kelley told the StarTribune he would probably challenge the constitutionality of the new law.
On issues of tainted money, lobbyists were actively involved in this legislation, in the system set up financing elections. It has been previously reported that Governor Dayton’s chairman of the METROPOLITAN SPORTS FACILITIES COMMISSION, Ted Mondale, had started a company with money loaned from the ill-gotten gains of Tom Petters. Perhaps placed in charge to lead the charge to collect tainted public tax money so that athletes, in the age of free agency, can play in a place their games and receive their riches way above the working women and working men — without any claws to fight back — before they leave Minnesota, so much better than the rest of us.


