As shown by GuideStar, the non-profit status for Creative Frontiers was revoked due to failure to file tax forms 3 years in a row.
Now CFS was a school that required tuition payments however that alone does not bar them from retaining non-profit status even if they had filed taxes. A non-profit organization as defined by the IRS is:
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.I think the idea here is that purpose of the organization is to benefit more than just the owner of it. Operating costs can include salaries, mortgages, supplies, maintenance, etc. However as we have seen from the numerous building code violations, the bulk of the annual estimated $1.4 million that CFS took in was not going back to the grounds or students of CFS. It was going into the Adams family directly.
In a conversation in May of 2011, Robert Adams claimed to a parent touring the school that they had a valid 501(c)(3) standing. The parent wasn't inquiring for any reason other than her company matched volunteer hours and she thought they would enjoy that benefit, indirectly benefiting her child. The fact that the status had been revoked through compliance failure by Robert Adams is yet one more example of the lack of willingness to follow rules set forth. The fact that Robert Adams lied about the status of their 501(c)(3) status is one more example the rampant and intentional deceit that permeates, seemingly, any interaction with Robert Adams.
I am the parent of a former student and am wondering if donations made to the Robert Adams Trust fund, which is on the school's website are tax deductible. Do you have any idea where money donated to that trust fund is going? It says that it is for the legacy and future of Creative Frontiers. Do you know what that means? Is this money being spent to reopen the school?
ReplyDeleteThank you for all this information. It is very eye opening and some of it is very disturbing because it is not what I was led to believe at all.
A parent who is just watching and waiting.
The above link stated that certain forms were not filed, not that he failed to file taxes???
ReplyDeleteAnonymous #1- I am unsure. There aren't really any details on this.
ReplyDeleteAnonymous #2- The forms it is speaking about are tax forms. Forms 990, 990EZ, 990N, etc are all federal tax forms for non-profit entities. http://www.irs.gov/pub/irs-pdf/i990.pdf
Just like when you file taxes you probably file a Form 1040.
Anonymous #1- I knew I remembered reading more about the trust fund somewhere. One of the Adams' daughters refers to the fund here: http://www.facebook.com/groups/134888604181/permalink/10150271057159182/ as the "defense and recovery fund". Later it is referred to as "for the legacy and the future of Creative Frontiers School"
ReplyDeleteAnonymous#2- I went back and reread what was written and I have edited it to make more sense. We did not mean to infer that Mr. Adams had not filed any sort of taxes, only that the tax forms required for the 501(c)(3) were not filed for 3 years. Thank you for pointing out our error, however the point of the post was not to point out the filing of the tax forms, but the deception surrounding the non-profit status.
CFS "TEAM" is a NON Profit. This the the PTA for CFS. CFS never claims to be a non profit.
ReplyDeleteOnce again, Thank You for digging deeper and finding even more damning evidence of misconduct. Whether in business or personal dealings, when someone burns me or lies to me, I want NOTHING more to do with them. I am sure many of the parents of former students feel the same.
ReplyDeleteAnonymous at 4:38PM. CFS may not claim it publicly but Robert Adams did when asked directly if CFS was a non-profit. A parent was told that it was. The question from the parent had nothing to do with the PTA, rather everything to do with CFS itself. That parent was told "Yes, we are nonprofit".
ReplyDeleteAlso, "CFS TEAM" is no longer a nonprofit either, that status was revoked.
I am the parent that asked about the for profit/non-profit status. I asked during my initial tour earlier this year. I specifically asked so that I would know if my company's matching grant dollars could be used to benefit my child. I was told by Bob himself that CFS was a non-profit and they would definitely be eligible for my employer's community giving money. I didn't ask "Is the PTA non-profit", I asked if CFS was. It wouldn't have been a deal breaker for me either way however the fact that he lied about that (and his credentials and his resume and who knows what else) IS a deal breaker. I contacted this blog so that other people could see the lies that were happening there.
ReplyDeleteAs a parent, I simply want to know where the money is that was paid for tuition, donated to the PTA Team or donated to the trust fund. Is that too difficult to answer? Is it being held in a trust, used for Bob's defense, or for the reopening of this school? Why can't I get this simple question answered?
ReplyDeleteChristian Peet on the CFS Facebook page:
ReplyDelete"...The school is *not really a non-profit*, I learned today. Shocking stuff! Or it might have been shocking, except that I already knew that CFS was a private business. Just as everyone else knew that. Primarily because the school has never claimed to be a non-profit, far as I can tell..."
Apparently, Christian forgot to tell Bob this information, because he was claiming the school was a 510(c)(3) school in 2009.
"adams340
Level 1
10/14/09
I submitted the application myself and can find no reason that we do not qualify under the eligibility section they referred me to on the Google Grants website: http://www.google.com/grants/details.html#eligibility . Can anyone help us? We are a 501(c)3 secular private non-profit school established in 1975 ( www.creativefrontiers.com ) and I am completely at a loss why we did not qualify. Google's lack of e-mail support is frustrating too! Thanks, Bob"
http://www.google.com/support/forum/p/grants/thread?tid=1ba8e5ca800acf21&hl=en
Sorry Christian. You fail.