"The big question is whether the $456,000 the museum made on investing the money in its accounts is considered outside the normal course of business.
Doug Harris, who is on the museum board of directors and also does legal work for the museum, in a letter to the city, stated that the museum is not in the business of investing money, therefore the interest income is outside the normal course of business and should be counted as a donation.
This was clearly not the intent of the contract forgiving a dollar for each additional dollar raised, at least not the city's intent.
...The truth of the matter is that the Greensboro City Council is most likely going to eventually forgive the loan to Sit-In Movement Inc. The City Council backed itself into a corner when it forgave the loan of $1.2 million to the Nussbaum Center for Entrepreneurship and it can't turn around and say that the sit-in museum has to repay a similar loan made under similar circumstances.
Politics in Greensboro is extremely racial. The Nussbaum Center is a predominately white organization, the sit-in museum is predominantly black. Former City Councilmember and sit-in museum co-founder Earl Jones has previously stated that the loan to the sit-in museum should be forgiven just like the one for the Nussbaum Center. Besides, what is the argument against forgiving the loan? That the City Council likes the Nussbaum Center more than the museum, or that it causes less trouble?
Once the City Council sets a precedent like forgiving a large loan to a nonprofit, it is difficult to go back.
...The smart money is betting that the museum doesn't repay a penny of the loan, however the details are worked out."
http://www.myvirtualpaper.com/doc/rhino-times/july-28-2016/2016072801/#2
How can the museum make money on money it doesn't have?
Doug Harris, who is on the museum board of directors and also does legal work for the museum, in a letter to the city, stated that the museum is not in the business of investing money, therefore the interest income is outside the normal course of business and should be counted as a donation.
This was clearly not the intent of the contract forgiving a dollar for each additional dollar raised, at least not the city's intent.
...The truth of the matter is that the Greensboro City Council is most likely going to eventually forgive the loan to Sit-In Movement Inc. The City Council backed itself into a corner when it forgave the loan of $1.2 million to the Nussbaum Center for Entrepreneurship and it can't turn around and say that the sit-in museum has to repay a similar loan made under similar circumstances.
Politics in Greensboro is extremely racial. The Nussbaum Center is a predominately white organization, the sit-in museum is predominantly black. Former City Councilmember and sit-in museum co-founder Earl Jones has previously stated that the loan to the sit-in museum should be forgiven just like the one for the Nussbaum Center. Besides, what is the argument against forgiving the loan? That the City Council likes the Nussbaum Center more than the museum, or that it causes less trouble?
Once the City Council sets a precedent like forgiving a large loan to a nonprofit, it is difficult to go back.
...The smart money is betting that the museum doesn't repay a penny of the loan, however the details are worked out."
http://www.myvirtualpaper.com/doc/rhino-times/july-28-2016/2016072801/#2
