Anonymous Mailing; Very Serious Allegations Regarding Willie Gary & Insurance Conflict

8/4/2019 Anonymous Mailing; Very Serious Allegations Regarding Willie Gary & Insurance Conflict

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Philadelphia Chaptercl o Mr. An th o ny J a ck s on

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2/8

WHAT'S THE PROBLEM WITH SHAW'S INSURANCE?

In recent interviews with Tamara Gibbs (WTVD, August 10 th) and Cash Michaels (TheCarolinian, August 1 ih) Chairman Willie Gary was asked about allegations of a conflictof interest created by Shaw University paying Gary Financial Group for its property andcasualty insurance. In both interviews Gary insisted that Shaw gets its insurance fromGary Financial Group because it "saves Shaw tons of money". This is a flat out LIE.Shaw University pays an exorbitant amount for its insurance through GaryFinancial Group.

Shaw's IRS 990 tax forms (attached) show that the University paid Gary Financials$1,132,755 for insurance in 2008 on $69,772,695 in assets and $1,248,067 in 2009 on$71,533,BI0 in assets. .Cornpare that to what three other North Carolina HJ~CUs paid forinsurance in 2008:

Johnson C. Smith Univ.----> $218,650 ($99,441,154 in assets)Livingstone College --------> $224,906 ($43,839,002 in assets)Bennett College--------------> $196,098 ($35,926,815 in assets)

(We could not find St. Augustine's 990s for 2008 online)

Shaw paid more than 5 times what these other schools paid for insurance!

In light of this information Shaw alumni, faculty, students and donors need to ask Mr.Gary the following:

1) Why is Shaw paying Gary Financial Group so much for insurance when,obviously, there are other companies providing cheaper insurance for schools

the size of Shaw? [Wake Forest University's 990s show that in 2008 it paid close towhat Shaw paid for insurance ($1,581,088) with over $1 BILLION in assets!]

2) How can Shaw pay over $1 million a year for insurance and still not have enoughcoverage to pay for a reported $4 million in tornado damage? On their websiteThe Friends of Shaw University say.that.Shaw has-a $254 million insurance policy.If that is true, that's enough insurance to rebuild Shaw's entire campus! (Remember,Shaw's total assets - all its buildings and properties - are valued at less than $70million.)

3) Why are Shaw students still eating in shifts out of a trailer while Gary and

his board are asking us to raise money to rebuild the Gary:'Center? The tuitionpayments, student fees, and donations from alumni, churches, businesses, and friendsthat were usedto pay Gary Financials over $1 million a year for insurance should beenough.

In the Carolinian Gary is quoted as saying "My brother has been writing that insurancefor ten or fifteen years ... And if you check his giving, he has given;,qii 'rkhe money he

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The following is a breakdown of the money Gary Financial Group collected from Shawbetween 2001 and 2009. The figures for the first 7 years come directly from Shaw auditreports which were publicly circulated last year. The last two years are from Shaw's IRS990 forms which are attached.

SHAW'S INSURANCE CONTRACT WITHGARY FINANCIAL GROUP

Date Cost for Year

i2001 $249~9132002 $265,5492003 $728,0482004 $896,0902005 $588,3132006 $771,763-2007 $735,512

TOTAL $4,235,188

2001 - 200720082009

$4,235,1881,132,7751,248,067$6,616,030

,

-ThelRS 990-s(attached)

In 2008 the Federal Government began requiring all non-profit organizations to revealany business transactions involving "Interested Persons" (i.e. persons who could have a

possible "conflict of interest" when doing business with that organization). That is whysince 2008 Shaw has had to list the Gary Financial Group by name on its tax forms andreveal exactly how many of its tax-free dollars Gary's relatives receive.


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OMB No 1545-0047

efile GRAPHIC rint - DO NOT PROCESS

~Form990

WOe p ar 1men t o f t h e T r ea s u ry

i nt e rn a l R e v e nu e S e r vi ce

As Filed Data - DLN:93493039012141

Return of Organization Exempt From Income Tax

2009nde r s ec ti on SOl (e }, 5 27, o r 4947(a )( 1 ) o f t he Internal Revenue Code (except black lungbenefit trust or private foundation)

~The organization may have to use a copy of this return to s atrs fv s ta te r epo r tmq requ ir emen ts Open to PublicInspection

B Check If applicable

r Mdress changer ame changer nitial returnr erminated

07-01-2009 and endin 06-30-2010

E T elephone nu mber

o Employer identification numberPlease

use IRSl abef orprint ort yp e. S ee

Specific INNwurmnbbeeir;;aifnidd-;s;ttrreeeett(ICo;;:rppC(05iblCo;XxcrffimmaariiISrscniOotti:deeilIVlveerreeKldttoost(;ree.e;tt'aKldd"drree:S:sS5))T""R;Roo;olfmil:/lSsuulit.te;1--l(9:'_.:':.1::_9J_)_:5c:4:..:6:_-:c8:.:2~O,,-0Instruc- 118 East South Street G Gross receipts $ 51,709,478tions.

56-0530235

r mended returnr pplication pendingCity or t own, st at e o r country, and ZIP + 4Rat ergh , NC 271 06

H(b) Are all affiliates included? I Yes I No

If"No," attach a list (see Instructions)

H(e) Group exemption number ~

Name and address of prmcrp al officer

Dr Dorothy Cowser Yancy

11 e East Sou th St reetRalerq hv N'C 27106

H(a) Is ttus a group return foraffiliates? IYes FNo

Tax-exempt status F 501(c) ( 3) ~ (rnsert no) I 4947(a)(1) or 1527

Website:'" wwwshawu edu

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2~", 3~, 45 : 5

6

Bnefly descr ibe the organizat ion's rrus sio n or most si gnifi cant activi tiesThe pr imary mission of The Uni versi ty IS t each ing, Wi th the commi tment tornarntain excellence In r esearch and a caderruc

programs that foster Intellectual enhancement and technological skills AdditIOnally, The University stresses character

deve lopment , wh ich Inc ludes r ehqrous , cultural, social, and ethical values U timately, The Shaw Uni versi ty endeavors to graduatestudents With demonstrated competencies In the rr chosen fields of study

Check ttus box ~ If the organization discontinued Its operations or disposed of more than 25% o f It s net assets

Number of voting members of the governing body (Part VI, line la)

Number of Independent v o tmq members of the governing body (Part VI, line Ib)

Total number of employees (Part V, line 2a)

Total number of volunteers (estimate If necess ary)

7a Total g ro ss unr el at ed b u sma s s revenue from Part VIII, c olumn (C), l ine 12

b Net unrelated bus me s s taxable Income from Form 990~T, line 34

31

4

05

31

1,059

21

o

o

8

~ 9c


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efile GRAPHIC rint - DONOTPROCESS As Filed Data - DlN:93493039012141

Schedule L

(Form 990 or 990-EZ)

OMS No 1545-0047Transactions with Interested Persons

2 0 0 9D ep ar tm e n t o f t he T re a su ry

In te rn al R e ve nu e S e rv ic e

. _Complete i f the o rg an izat ion answered

"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,or Form 990-EZ, Part V l in es 38a or 40b.

~ At tach to Fo rm 990 o r Fo rm 990-EZ. ~See separ ate inst ru ction s. Open to PublicInspection

Name of the organizationThe Shaw University

Employer identif ication number

56-0530235

Excess Benefit Transactions (section SOl(c)(3) and section 501 (c)(4) organizations only),Complete If the organization answered "Yes" on Form 990, Part IV, line 25a or25b, or Form 990-EZ, Part V, line 40b

1 (a) Name of disqualified person (b) Descript ion of transaction(c) Corrected?

Yes No

2 Enter the amount of tax Imposed on the organization managers Or disqualified persons dunnc the year under

section 4958 , $3 Enterthe amount of tax, tfany, on line 2, above, reimbursed by the organization. $

IMi.1 loans to and/or From Interested Persons.Complete If the organization answered "Yes" on Form 990, Part IV , line 26, Or Form 990-EZ, Part V I line 38a

(a) Name of Interested person andpurpose

(b) Loa n toorfrom the

(f)

organization?

(c)O nq in a lprincipal amount

(d) Balance due

(e) In

default?Approvedby boa rd orcommittee?

(g)Wrtttenagreeme nt?

To From Yes No Yes No Yes No

Total

Grants or Assistance Benefitting Interested Persons.Complete If the organizatIOn answered "Yes" on Form 990, Part IV, line 27,

(a) Name of Interested person(bj Re la no ns hrp between Interested person

and the organization(c)A mount of grant or type of ass is t ance

- -,

IHN Business Transactions Involving Interested Persons.Complete If the orqaruzatron answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c,

(a) Name of Interested person(b) Relations hipbetween Interestedperson andthe

(c) A mount oftransaction

(d) DeSCript ion of t ransac tion

(e) Shartng oforganization's

revenues?

Gary Financial Group;

orga r u z a t ro n

Brother of FreddieGary, who IS member ofShaw u ruv Insurancep ro vrd e r

Yes No

No1,248,067 Dr Wille Gary IS chairman of theShaw University board ShawUniversity purc has es Insur~; 'cef rom Gary Flnahtlal Gr o trp ofwhich Dr Gary's brother,Fre'ddle Gary, IS a member

For Pr ivacy Act and Paperwork Reduction Act Notice, see the In tructions for Form 990 Cat No SOOS6A Schedule L (Form 990 or 990-EZ) 2009 '


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efile GRAPHIC rint - DO NOT PROCESS As Filed Data - DLN:93493133024400

Return of Organization Exempt From Income Tax OMB No 1545-0047

Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung

benefit trust or private foundation)2008

Open to PubDicInspectiol1l

A For the 2008 calendar_year o r tax vear beqinn ing 07-01-2008 and ending_ 06-30-2009

B Check If applicableC Name of orqaruzation D Employer-identification number

Please THESHAWUNNERSlTYI Mdr ess cha nqe use IRS ~ 56-0530235

label or DOing Busmess As ETelephone numberr ame c ha ng e print ort yp e. S ee

(919) 546-8200I" Initial return Specific Number and street (or PO box If maills not del ivered to street address) IRoom/suiteInstruc- 118 EASTSOUTHSTREET GGross receipts $ 58,225,335

I Te rminat ion tions.

r mended return CIty or town, state or country I and ZIP + 4RALEIGH,NC 27106r pplication pending

F Name-and a d dr e s s of Prm crpal Officer H(a) Is this a group return forDr Dorothy Cowser Yancy affiliates 7 IYes F No118 Ea st-Sou th St re et

Ral ei gh , NC 27106H(b) Are all aff il ia tes included? I Yes I No

I Tax-exempt status F 501(e) ( 3) "" (tnsert no) I 4947(a)(1) or 1527 (Jf"No," attach a list See Instructions )J Web site: ~ WWW SHAWU EDU H(c) Group Exemption Number ....

~ Type of orqaneaton F orporation I trust r ssociation I o ther . .. . Il Year of Formation 1865 IM State o f legal domicile NC

Department oftheTreasury

InternalRevenueService "'-The organization may have to use a copy of this return to satisfy state reporting requirements

'"= :~;r ,>,~

~ 3>tI 4'" , 5~~

6

7a

b

8

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'" 10'"1'Q;

11

12

Bri ef ly desc ri be the o rgan izat io n' s rtus sro n or most significant activities

The primary rrus sion IS teaching, with the commitment to maintain e xc e Il e nc e In research and academic programs that fosterIntellectual enhancement and technological skills

Check thrs box I I f t he orqaruzanon discontinued Its operations or disposed of more than 25%Number of voting members of the governing body (Part V I, line 1a)

Number of Independent voting members of the governing body (Part VI, line 1b)

Total number of employees (Part V, line 2a)

Tot al number ofvol unte er s (es timate If nec ess ar y)

Total gross unrelated b usm e s s revenue from Part VIII, line 12, column (C)

Net unrelated busrrie s s taxable Income from Form 990-T, line 34

of I tS asset s

3 31

4 31

5 162

6 0

7a 0

7b 0

Contrrbutlons and grants (Part VIII, line lh)

Program service revenue (Part VIII, line 2g)

Investment Income (Part VIII, column (AJ, lines 3,4, and 7d)

Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)

Total revenue-add lines 8 through 11 (must equal Part VIII, column (AJ, line

12

13 Grants and similar amounts p ai d (Part IX, column (A), lines 1-3)

14 Benefits paid to or for members (Part IX, column (A), line 4)

15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5-

10)

16a Profe s sron al fund ra ts mq fees (Part IX, column (A), line lle)

b (To ta l t undr ai smq expenses, Pa rt IX , co lumn (D); ~ne 25 _17_2-' -,_19- ,9' -' - _

17 Other e x pe n se s (Par t IX; c ol umn (A), lines 11a- 1 td, l1--f--24f;)

18 Total expenses-add lines 13-17 (must equal Part IX, line 25, column (A

Revenue less ex nses Subtract line 18 from line 12

'fotal a-sse-ts,,(Part X,lrne16) !

Total liabilities (Part X, line 26)

Please

SignHere

2010-05-05

Signature of officer Date

Thomas Portter Vice President

Preparer's It . .si gnatur e , .

Date Check If Preparer's PTIN (See Gen Inst)self-empolyed r

EIN

Typ e or prmt name and t it le

Fo r Pr ivac y Ac t a nd Pape rw ork Reduc ti on Ac t No ti ce ! s ee t he s epa ra te i ns tr uc ti ons . Cat No 11282Y Form 990 (2008)

Paid

Preparer's

Use Only

Phone no (205) 251-2000

IYes INoay the IRS diSCUSS this return With the preparer shown above? (See instructions)


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hedule Lm 990 or 990-EZ)

Transactions with Interested Persons

le GRAPHICrint - DONOTPROCESS As Filed Data - DLN:93493133024400

OMS No 1545-0047

a r tmen t o f t h e T re a s ur y

rn a l Rev enu e Serv ice

'~Attach to Form 990 or Form 990-EZ.

~ To be complet ed by organizations that answered

"Yes" .on Forrn ~90, 'Part IV, lines 25a, 25b, 26, 27, 2Sa, tsb, or 2Sc,or Form 990-EZ, Part V lines 3Sb or 40b.

Open to PublicInspection

ame of the organizat ionHE SHAW UNNERSITY

Employer identification number

56-0530235

I

ExcessBenefit Transactions (section 501(c)(3) and section 501 (c)(4) or qamzatrons only).To be completed by organizations that answered "Yes" on Form 9 9 0 Part IV, line 25 a or 25 b, or Form 990- EZ, Part V, line 40 b

1 (a) Name of disqualified person

I(b) DescriptIOn of tr a ns a c tro n

(e) Corrected?

Yes I No

- - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ , - - - - t - - -- 7-

e

-.. ~" .. -~:~-.. ~ '~ - -~2 Enter the amount of tax Imposed on the urgonlzatlon managers or disqualified persons durm c the year under

section 4958 . .... $

3 Enter the amount of tax, If any, on line 2, abc ve, reimbursed by the organization. .... $

Loans to and/ 0 r From Inte re-s-t=-e-d"':"":P:"e-r-s-o-n-s-----------------------------

To be com leted by organizations tr.at answered "Yes" on Form 990 Part IV line 26 or Form 990 EZ Part V line 38a

(a) Name of Interested person and

purpose

~__

, - ,

(b)_oan to or(f)

IC'Jmthe (c)O r r qm a l principal(e) In Approved (g)Wrltten

(d)Salance due default? by board or agreement?orra n rz a tr o n? amountf-,c

o

committee?

I From Yes No Yes No Yes No

::_

: J/-

. , . ...,

- -. . . . $

.'flidi Grantsor A!;l~J~ta[i[-eBeneflttmg Interested PersonsTo be completed by,;;;rqanlzatlo,ns that answered "Yes" on Form 990 Part IV line 27.

(a) Name of rnte r e s te dpevs on(blRel atl onsh lp between Int ere st ed p er son

and the organ izat ion(c)A mount of grant or type of assistance

li(!J Busines~sir'a nsacttons, Involving Interested PersonsTo be camr:;eted by organizations that answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.

(b) Relationship (e) Sharing of

led personbetween Interested (c) A mount of

(d ) DeSCrip tion of t ransactionorganization's

(a) Name of rnte reperson and the transaction revenues?organization Yes I No

Financi al Group. See Schedule 0 1,13;!,i'75 Irisu'rance , 'I ' IN 0"_.. .

'1

,

Paperwork Reduct ion nct Notice, see the Int ruct ions for Form 990 Cat No 50056A Schedule L (Form 990 or 990-EZ) 2008

Anonymous Mailing; Very Serious Allegations Regarding Willie Gary & Insurance Conflict

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Transcript of Anonymous Mailing; Very Serious Allegations Regarding Willie Gary & Insurance Conflict