Over the years, a very generous and well-known businessman showered Big Brothers Big Sisters of the Greater Twin Cities with money, more than $200,000 in all. For BBBS, which like most nonprofits struggled to keep its programs funded, it was welcome relief.
Unfortunately, the money didn’t belong to the businessman, Tom Petters, who was eventually convicted of running one of the nation’s largest Ponzi schemes.
Years after spending the money Petters gave them, BBBS and many other nonprofits faced the possibility of financial clawbacks, which would have forced them to pay back all of the money. The prospect for the agency was potentially devastating, said Robert McCollum, a board member.
“These are difficult times for all nonprofits,” said McCollum. “It would have had a big impact on programs and the number of people they could serve.”
The original article (“Tevlin: Minn. law helps charities limit their exposure to clawbacks” by Jon Tevlin) can be found in Star Tribune »