Perhaps you've been wondering what it is that is causing the City of Greensboro and the Community Foundation of Greater Greensboro to appear to be at an impasse concerning who will own the downtown Greensboro Performing Arts Center, aka the Steven Tanger Center for the Performing Arts.
Anyone who wants to fully understand the problem only needs to download and read the Articles of Incorporation of the Community Foundation of Greater Greensboro. http://www.secretary.state.nc.us/images/PDF.gif The CFGG cannot, by law, donate money to the City of Greensboro and thus is left with but 2 choices, Plan 1. The CFGG forms a new non profit which owns 100% of GPAC but they can't do that because they don't really have the money or Plan 2. the new non profit holds a controlling interest with the Taxpayers footing the bills:
Why must CFGG have a controlling interest in scenario #2? Because if the City has a controlling interest the City could change or even back out of the deal. And because CFGG has no money and thus no power without controlling interest.
Non profits cannot DONATE money to governments when said donations do not meet the articles of incorporation of the non profit(s) in question What non profits can do is buy things and give those things to government but cash donations to governments under these circumstances are illegal. This is so to prevent municipal governments and non profits from getting into the money laundering business.
But you see, the Community Foundation of Greater Greensboro doesn't actually have the $35 Million Dollars that has been pledged over the course of the next 10 years so even if CFGG were willing to build a performing arts center and give it to the City of Greensboro they haven't got the cash or credit to do it.
So they scheme up Plan 2 and hope the Greensboro City Council will take the taxpayers for fools.
