According to the article, the foundation, named for Obama’s father, had been operating illegally for years by soliciting tax-exempt contributions without ever having filed for such status. However, when it ultimately filed, it was a very quick application and approval process.
The Daily Caller explained:
For example, the group’s 990 filings for 2008 and 2009 were submitted to the IRS on May 30, 2011, and its 2010 filing was submitted on May 23, 2011.The National Legal and Policy Center complained to the IRS in May 2011 about the illegal activity of the foundation.
Lerner signed the group’s approval on June 26, 2011.
It is illegal to operate for longer than 27 months without an IRS determination and solicit tax-deductible contributions.
“The Obama Foundation raised money on its web page by falsely claiming to be a tax deductible,” the Center’s chairman Ken Boehm told The Daily Caller. “This bogus charity run by Malik had not even applied and yet subsequently got retroactive tax-deductible status. How do you get retroactive tax-exempt status when you haven’t even applied to get it in the first place?”
According to the foundation’s website:
The Barack H. Obama Foundation was founded by Abon’go Malik Obama, first born son of Barack H. Obama of Nyan’goma Kogelo village, Alego, Siaya, Kenya. The foundation is entirely the idea of Abon’go Malik Obama, in memory of their father, and is not dependent on the endorsement of his brother, President Barack Obama.
The Barack H. Obama Foundation is committed to a wide array of development and humanitarian projects which will help mitigate social-shortcomings in areas of education and literacy, health and well-being, poverty, and lack of community infrastructure in such basic needs such as water, electricity, shelter and sustenance. It was the vision of Barack H. Obama, that efforts be made around the globe to address the needs of those most in need.
http://www.bizpacreview.com/2013/05/15/irs-approved-questionable-charity-of-obamas-brother-at-warp-speed-69410
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