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9-13-2009 7:00 PM
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merrie says:
ACORN proves the axiom of the modern welfare state " that there's no business like the poverty business. Although ACORN runs a large conglomerate of social-activist anti-poverty front groups out of a New Orleans hub, it is registered as a nonprofit corporation in Arkansas, which does not require financial disclosure. This has allowed it keep its own finances shielded from public scrutiny, while demanding transparency from all others.
The group's nonprofit status refers only to its corporate form. That is, ACORN must be organized for a public purpose and have no stockholders, unlike a regular corporation. However, it is not tax exempt under federal law, since it does advocacy and lobbying that would run afoul of IRS restrictions, such as endorsing political candidates.


ACORN was started in 1970 by Stephen Wade Rathke, a former SDS radical and Boston-based community organizer. The group now consists of so many interlocking associations, corporations, and affiliates . . .
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9-13-2009 7:02 PM
merrie
. . . that investigators have trouble identifying them all. One research organization numbers them at 174, but the Capital Research Center puts the number closer to 300. One blogger came up with 294 of them by running a Lexis/Nexis search of organizations registered to ACORN’s 1024 Elysian Fields address in New Orleans.

The core of ACORN’s fundraising started with a member-dues model. The group has used that money to leverage federal, state, and local government grants totaling tens of millions of dollars. It also receives union cash for organizing activities and political campaign funds for get-out-the-vote drives. It now runs radio stations, businesses like a furniture company, a magaz...
9-13-2009 7:06 PM
merrie
No information appears to be available on the personal wealth or property of any of the Rathke family members.

One of the Rathke's methods of deriving personal profit went a little further than just obfuscation and secret deals. ACORN officials have recently admitted that Dale Rathke embezzled $948,607.50 from ACORN and its affiliated organizations in 1999 and 2000. However, ACORN insiders decided to keep the situation quiet and not alert law enforcement. Incredibly, Dale Rathke remained on ACORN's payroll until June of this year, when the scandal forced the resignation of both Dale and his brother Wade from ACORN. Two board members are now suing Wade Rathke for the coverup, and a criminal ...
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