Using Public Money to Run a For Profit Venture Capital Fund?

Council members, elected officials and media:

SPARK, a NON-PROFIT, is taking taxpayer money and they are managing a FOR-PROFIT fund.

Tax-payer money is being used to support a FOR-PROFIT.

That fund is fueled by high net worth investors, who will benefit from the tax-payer money, should that investment make money.

In form 13909 of the 990 complaint form, one of the complaints that an individual can make is this:

“Organization is engaged in commercial, for-profit business activities”

http://www.irs.gov/pub/irs-pdf/f13909.pdf

Now, since this NON-PROFIT is taking tax-payer money and managing a FOR-PROFIT fund, then ANY Council Member, Mayor, Congressman, Senator, Governor, County Elected Officials…. should disclose that they are investing in it (if they are).

Why?

If CM Petersen or CM Taylor or any other council member that is voicing support in SPARK, then they should declare if they have money in the Angel Fund.  If they do have money in it, and they are promoting SPARK, then they have a conflict of interest as their wealth is connected to SPARK and the tax-payer money that supports SPARK.

If CM Petersen (or family) or CM Taylor (or family) has nothing in the Angel Fund, or investments in the companies that get the Angel money, then it is not a conflict.

Here’s the big question: Why are elected officials supporting a NON-PROFIT that is managing FOR-PROFIT funds?

Kai Petainen

Ann Arbor, MI

Please note: Kai Petainen is a member of The Ann Arbor Independent’s Editorial Board.