A Senate committee is seeking thousands of pages of internal documents from
the Nature Conservancy as part of an "independent review" of the charity's
practices.
In a letter sent yesterday to Conservancy President Steven J. McCormick, the
Senate Finance Committee asked for records reaching back a decade and spanning
18 broad topics. Along with general explanations of Conservancy policies, the
committee is requesting information as detailed as the Social Security numbers
of individuals who received loans and land from the nonprofit.
The letter is signed by committee Chairman Charles E. Grassley (R-Iowa) and
ranking Democrat Max Baucus (Mont.). The senators said in May that they might
consider legislation after The Washington Post reported on a range of
Conservancy practices, including the group's sale of scenic property to trustees
who then made tax-deductible donations to the organization.
In the seven-page letter to the Nature Conservancy, the senators cite
"serious questions about TNC's practices regarding land sales, purchases and
donations; executive compensation; and corporate governance, among others."
As part of its review, the committee plans to seek information independently
about the Conservancy from the Internal Revenue Service, a committee staff
member said yesterday.
The Arlington-based Conservancy said in a statement that it "has been in
discussion with Committee staff, and has conveyed to them that the Conservancy
will work cooperatively and expeditiously with the Committee to address all
matters within the scope of the inquiry."
The Conservancy also pointed out that, independent of the inquiry, the group
had thoroughly reviewed its practices, and its board of governors had made
several changes.
The Senate letter includes more than 100 questions and requests for
information, some of which could elicit hundreds of pages in response.
The letter asks for information on all of the Conservancy's land deals with
private individuals, including so-called "conservation buyer" deals. In those
deals, the Conservancy bought raw land, added development restrictions, then
resold the land at a reduced price. The buyers then made tax-deductible gifts to
the nonprofit.
Many of the conservation buyers were current or former Conservancy trustees,
who built homes on the rustic sites. When the Conservancy board announced major
policy changes on June 13, it included a prohibition on land sales to trustees
and other Conservancy insiders.
The committee wants to examine details of all loans the Conservancy has made
in the past decade, including those extended to a power company and other
for-profit corporations. Its request covers a dozen home loans to Conservancy
employees, including $1.5 million extended to McCormick and a no-interest
$500,000 mortgage extended to California state director Graham Chisholm.
The senators also want to examine all audits of Conservancy operations from
the past five years. The committee seeks details of land sales to government
agencies, including appraisals and any profits banked by the Conservancy. In
particular, the letter asks for a list of grants and contracts involving three
nonprofits: the National Fish and Wildlife Foundation; the National Forest
Foundation; and the National Park Foundation.
The committee asked that the material be submitted within a month.