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NAPPS and the IRS (part II – whistleblower)


Thanks to the site of member Randy Scott (, we were able to retrieve Form 990 for 2010.  As a side note, any of you governance junkies out there with extra time on your hands has got to check out his site.  Process servers continue to amaze us with their diverse skill set.  Just think, NAPPS chases all the good ones away…

Back to the topic, the 2010 Form 990.  What we immediately noticed were several changes in how the YES-NO boxes were checked but it was also a year where NAPPS moved from reporting on a fiscal basis (July to June) to a calendar year basis (Jan -Dec).  Calendar year is certainly easier to follow for most people and it was a good move for NAPPS.  The other positive change is that a board member confirmed that they received the 2010 Form 990 from treasurer Steve Janney via email.  It’s not exactly clear when they received it (before or after the form was filed) but we take it as a good sign regardless.   We haven’t been able to confirm if that was the case in 2009.

What remains problematic is this box checking thing.  It’s a bit baffling to be honest.

For example, in the 2010 filing, Box #6 is now checked YES indicating that  NAPPS has members.  That’s a good thing because we thought we were going crazy.  Imagine paying member dues all these years but never being a member.  Well relax, as of 2010, you now appear to be a member.  But, according to the Box Checker,  you still don’t have the right to elect members of the governing body (the board).   We aren’t making this up, it’s right there on the form NAPPS files with the IRS.

The other thing Box Checker did that was a BIG surprise was the following:

Part VI – Section B – Question #13 – Does the organization have a written whistleblower policy?   Answer: YES

Really?  NAPPS has a whistleblower policy?  Amazing.  We couldn’t find it but sometime between the 2009 Form 990 filing  (May  2011) and the 2010 Form 900 filing (Nov 2011), NAPPS instituted a written whistleblower policy.    What happened late 2011 to convince Mr. Admin that the box had to be checked?  Can anyone point us to this policy?

Let’s summarize folks.  You’re a member of NAPPPS but you can’t vote for the elected leaders and if you have a problem, you now are protected by the whistleblower policy that really doesn’t exist.

There are some who would call this nitpicking and in most circumstances, we would agree.  These types of errors would be expected in a draft committee report or perhaps in an early version of a board presentation but this is an official association report going to the IRS!  We spent little time going through the 990′s and this is what we uncovered.  We can only imagine what an audit would uncover.  It’s an embarrassment and there is no excuse.  Mr. Admin isn’t doing his job and the board isn’t doing theirs.  There is nothing here that gives us any degree of confidence that the rest of the associations business matters are in any better shape.  If you can be this casual with the IRS, imagine what committee expense report reconciliations look like.  Mr. Roth wrote the book on that policy.  NAPPS allowed Mr. Yellon to take $100K out of one pocket and put it into another without any substantiating documentation.  Just say it enough times and it must be true.

Pertinent screen shots below.  2010 Form 990 here.

You're a member now!


3 Comments leave one →
  1. PR Process permalink
    2012-04-04 16:06

    Two points

    1. second page of the 2010 990 has in the upper right hand corner “open to public inspection” by federal law since NAPPS gets a tax benefit by not having to pay certain taxes the stakeholders include all citizens of the US.

    2. This 2010 990 was filed 11/8/2011 for the supposed reporting period of change of reporting period 7/1/2010 – 12/31/2010.

    In the prior years they went from July to July. This 990 year they changed reporting period from 1/1 – 12/31. This reporting period will not have July 2010 dues since they were due by July 1 but it does have them. It should not have the convention revenue in it since that is in April but it does have it in it. The only way for this correction be correctly balanced would be for this next report 2011 to have adjustments way down. On a precurosy look at this 2010 I would have to conclude a significant amount of money in 6 months reporting period showed up again. Where is all this money falling from or dug from is the ground thawing in Oregon?

    And yes we do take notice that it was filed on the same day that the board met to expel Bannister.

    • NAPPS Watcher permalink*
      2012-04-04 19:47

      About the stub year. We wondered the same but the issue will have to wait until the 2011 filing. Having year end financials (Full year 2011) presented at conference next month will be helpful seeing how they line up. The historical financial reports (from the current do nothing board member Ron Ezell) are a mess and don’t jibe with any pre-2009 Form 990. We now have a better context to Jack Lippman’s now infamous declaration during his bid for ‘appointed’ president at the 2010 conference.

      “NAPPS doesn’t need a budget. I’ve run my business all these years without a budget, why would NAPPS need one?”

      How’s that working for you Jack? And you Mr. Admin?

  2. Sengbe Pieh permalink
    2012-04-05 15:32

    If they had a whistle-blower’s policy, this website wouldn’t exist. The policy/ethics/by-law crisis that has caused this cursed website to appear wouldn’t have happened, and all this embarrassing, bullshit drama wouldn’t be playing out for the entire world (ok, maybe not the ENTIRE world) to see. On a, who-gives-a-shit-o-meter, this drama pegs the needle. There are much bigger issues to tackle.

    Here we are on the precipice of yet another apathetic conventional jaunt across the nation to learn about, what?…psychobabble, meditative mind/body/spirit/chakra hand puppetry. REallY? Maybe an Apache Pow Wow and some traditional hoop dancing, next year? So we don’t deserve Deepak Chopra, Mr. Admin, with all the money we pay you? Is Spam on the menu too? I’m sure she’s a fabulous Maharishi, but!

    Not a single speaker/class to break the bad news that we must begin to press our constituent organizations/policies/by-laws/ethics SOPs into Sarbanes-Oxley, VPA Compliant organizations? Boring? Yes! Required? You bet. They just happen to be silly federal Acts.

    This may take three years to fully emplement NAPPS and all state organizations to full +/- compliance. To fail to begin this task immediately is asking for lawsuits and more repressive governmental restrictions regarding the continuance of your Org. non-profit exemptions. Now we’re talkin BIG BUCKS and lots of SPLAININ to do to meditating members, lotus positions or not!

    In fact, it may already be too late. Why? Because we’re already pushing the envelope on IRS tax forms that affirms we ARE transforming, AND THANKS to big mouth Whistle-Blowers, it’s no longer a secret that we’re not. :-(

    Here’s the title that should have been in the Sheet for this convention:
    “Imperative! Presidents Of Chartered States Are Requested To Attend The 2012 NAPPS Conference For Education On New Federal Guidelines For Exempt Organizations!”

    NAPPS should have booked their flights and paid their hotel expenses. Hey, it’s a tax write off….still. For those who absolutely can not make it, there will be LOTS of opportunities in the future as this is NOT something that can be fixed on a spring break, beer guzzling, party weekend. It’s going to take long term planning and logistical SOPs to comply with these. Sounds fun! Not!

    You fresh faced, energetic, fire breathing Mavericks; THIS IS YOUR GOLDEN opportunity to engineer this new train. Preside in your state organizations and napps to cautiously raise them to the required Fed. standards before they lose their tax exemptions and this whole Kit-N-Caboodle derails. Carve your niche by force and will! Don’t wait around for one of the Patriarchs to send you a concecrated scroll. It’ll never happen.

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