Mayor Thomas M. Menino controls a charity at City Hall that some years collects more than $1 million to pay for festivals, a toy drive, and other initiatives important to the mayor. But unlike political contributors, the benefactors who give money to the Fund for Boston Neighborhoods often have remained confidential, shielded by the anonymity of federal tax law.
Donors have given $12.5 million to the city-run charity since Menino took office in 1993, and contributors include large corporations, developers, law firms, contractors, lobbyists, and others with business before the city.
For years, the Menino administration used the nonprofit to collect donations that were akin to rent payments from advertising firms, movie companies, and other commercial entities that used City Hall Plaza and other public land, taking in more than $250,000 in site fees since 2009.
“This is an area that cries out for full transparency,’’ said Pamela Wilmot, executive director of Common Cause Massachusetts, a government watchdog. “All donors should be disclosed. This is an entity that is controlled by the city, and by having secret donors, there is a potential for using a contribution as a way of gaining access and influence.’’
After almost six months of records requests and inquiries from the Globe, Menino has released for the first time a comprehensive list of donors and a line-by-line accounting of recent expenses. Looking ahead, he vowed to make significant changes to the nonprofit.
“We’re going to have a website out there that shows where the money is coming from, and where the money is being spent,’’ Menino said last week in an interview. “We’re going to add transparency to it.’’
Just wondering why it wasn't transparent from the start.
The fund will no longer collect payments for events and promotions on City Hall Plaza and other public land, said Menino’s spokeswoman, Dot Joyce. Fees will now be paid to the city’s general fund, which is subject to oversight by the City Council....
Only because the Globe was asking about it.
While vowing to overhaul the nonprofit, Menino vigorously defended the charity and said donations do not influence decisions made by his administration.
“If we didn’t have this fund, a lot of events we have in neighborhoods in Boston would not exist,’’ Menino said. “If I were to spend all this money on parties, the headline would be, ‘Mayor spends money on parties.’ But what I’m doing is using private resources to make sure people have a livable city.’’
That translates into victory parades for championship sports teams, turkeys at Thanksgiving, and the Boston Arts Festival. The fund also has paid to bury young victims of violence....
The fund emerged into the spotlight last fall as competition to build a casino in the Boston area heated up. The Globe reported that the owner of Suffolk Downs, Richard Fields, had donated to the charity. The newly released city records show that from 2007 through 2011, Suffolk Downs and Fields contributed $47,500 to support neighborhood arts and the holiday toy drive.
After the Globe’s report, the charity returned a $5,000 donation from Suffolk Downs because city officials said they wanted to avoid any appearance of impropriety. Menino has been a vocal booster of the racetrack’s push to build a casino in East Boston.
In a statement, Suffolk Downs said it strives “to be a good neighbor and has a longstanding record of contributing to local charities, especially those benefiting neighboring children and families in need.’’
The Fund for Boston Neighborhoods was founded in 1968 to raise money for summertime concerts. As a nonprofit not subjected to City Council oversight, the fund can immediately cut checks for performers and vendors, making it easier, Menino said, to stage events like last year’s parade for the Boston Bruins on short notice.
Over the years, the fund’s mission has expanded to pay for programming at the city-owned Strand Theatre in Dorchester and much of the budget at the Parkman House, a mansion used by the mayor for meetings and official entertaining.
Most of the money comes from tax-deductible contributions....
From July 2010 through June 2011, the top expenditures included roughly $524,000 for Hub on Wheels, an annual event that administration officials said drew 4,000-plus bike riders to city streets. More than $223,000 was used to pay for the Mayor’s Cup, a professional bike race that officials said attracted over 5,000 spectators.
But 2 1/2 years of expenses provided by the city showed the fund does more than support cultural events.
The charity paid for extras that might be hard to justify with tax dollars, such as $778 worth of gifts for departing city employees. The presents included an engraved weather station for a retiring police captain; $150 charm bracelets from DePrisco Diamond Jewelers; and a $138.13 American Express charge at high-end clothier Thomas Pink with the handwritten note “TMM gift,’’ using Menino’s initials to indicate that the item was for a staff assistant leaving the mayor’s office.
The charity paid $500 to rent a horse-drawn carriage for Menino so he could lead the First Night 2010 parade, shortly after undergoing knee surgery. It allowed his administration to give away roughly $150,000 worth of presents to more than 4,000 needy families each Christmas....
Joseph Fallon, the developer building an $800 million headquarters for Vertex Pharmaceuticals Inc. in South Boston, has also been a significant contributor. The project won almost $12 million in city property tax breaks. Fallon and his company have donated $51,125 cumulatively from 2008 to 2009.
Pretty good return, 'eh?
In a statement, Fallon said: “The Fund for Boston Neighborhoods has a record of helping those in most need and producing quality events for the enjoyment of many Bostonians and visitors alike. It’s good for the city and helps continue to bring a vitality to our community.’’
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Other cities have charities that allow elected officials to solicit private money to pay for events that might not be appropriate for taxpayer funds.
The Mayor’s Fund to Advance New York City, for example, has helped preserve portraits in City Hall and expand the number of salad bars in schools. The New York fund reported $28.8 million in contributions in 2009 and has a website where it promotes its accomplishments while also posting a newsletter, annual report, and IRS filings. But the site does not list contributors, and Mayor Michael R. Bloomberg’s office did not respond to inquires about whether donors’ identities are made public.
The Fund for Boston Neighborhoods has not had a website, but it does submit annual reports, audits, and limited financial filings to the state attorney general’s office and the IRS....
