My Final Post On Betty Cone And Grassroots

As you're probably aware by now Betty Cone is closing Grassroots Productions once and for all and the City of Greensboro is looking for qualified organizers for the various events Grassroots managed. What more recent readers may not be aware of is the fact that I broke the story of Grassroots having failed to file Federal Tax Returns a full 2 months before the News & Record reported the story.

I also stated numerous times that Betty Cone was attempting to convert Grassroots from a non profit to a for profit corporation-- a fact which was never reported anywhere else. Turns out it was the Internal Revenue Service that was forcing Ms Cone to convert from a non profit to a for profit corporation in an effort to collect taxes on all those years Grassroots never filed taxes. And yes, I have a reliable source very close to Ms Cone that confirms this was the case and that her actions were never nefarious.

Everything I have written about Betty Cone can by clicking here. There are without a doubt mistakes.

Groups like Action Greensboro, the Bryan Foundation and the Community Foundation of Greater Greensboro could have stepped in to save Grassroots Productions. Instead they chose to profit from Ms Cone's mistakes by charging administration fees for the donations they took in on behalf of Grassroots Productions making it impossible for Ms Cone and Grassroots to ever repay the back taxes the IRS claimed to be owed.

When I suggested to my source that the people running Ms Cone's organization and several other Greensboro based non profits that have met the same fate apparently don't take the public trust very seriously, my source simply replied, "Nah! It's just incompetence."

She's never lied to me, I'll take her at her word. 

I've given you the truth as best as I can, more-so than was ever given you by the local mainstream media and despite my mistakes you now know where the blame lies.

Grassroots, Profit Or Non Profit: So Which Is It? The Non Final Word

Just got this document from the City of Greensboro Legal Department. Grassroots is exempt from business license requirements because they remain a non profit according to the North Carolina Secretary of State but weren't we told by the News & Record and other media outlets that Grassroots lost their non profit status and would be converted to a for profit business after paying back taxes? Is Grassroots a non profit or a for profit corporation?

So I picked up the telephone and called someone at Grassroots. It seems contributions are made through the Community Foundation of Greater Greensboro while Grassroots attempts to restore their 501 c 3 Federal non profit tax status. I can only wonder how much the Community Foundation charges in management and pass-through fees.


So for now Grassroots is a non profit except that they're not really a non profit or a for profit until if and when their status is decided by the Federal government.

Now if the City Legal Department had simply answered a simple question all this BS wouldn't have been necessary.

Has Betty Cone Paid Her Taxes?

I keep getting e-mails from interested people asking if Betty Cone and Grassroots Promotions Llc has paid their back taxes since having been caught last year having pocketed donations for several years in a row and loosing their Federal non profit status.

I have no answer for you as so far the City of Greensboro has not responded to requests for public information concerning this matter.

The only thing I do know is that a check of the NC Secretary of State website as of last night indicated that Grassroots had not changed its "non profit" status. As a matter of fact, there have been no updates to Grassroots filings since 1995.

Then there's the questions about requests for proposals for the services Grassroots provides to the City of Greensboro... There's a reason no one from the City of Greensboro ever answers my questions: They're afraid you won't like the answers or they're scared of getting caught in a lie.

Grassroots: How About We Check Their Business Liscense First?

Dang is suggesting that before the City of Greensboro continues to do business with Betty Cone and Grassroots Productions LTD, the City of Greensboro should start a new RFP (Request For Proposals) for the "services" Grassroots provides to the City of Greensboro. I don't disagree but before the City does any business with Betty Cone we need to know she actually has her ducks in a row.

You see, it was your's truly that broke the story last summer that Betty Cone and Grassroots had not filed taxes in several years a month to the day before the News & Record covered the story which forced Ms Cone to convert her non profit to a for profit corporation. But did she do so? Not according to the North Carolina Secretary of State.

Unless they are operating under a new name, Grassroots has not updated their filings with the NC Secretary of State since 1995 in which case they should have filed a form dissolving the old name which is not showing as having been done at the NC Secretary of State Website: Grassroots is not a legal for profit nor a legal non profit.

Why is it Betty Cone finds it so hard to operate within the law?

DGI And Grassroots Double Billing?

We've discovered a little problem in pouring over the records for Downtown Greensboro Incorporated:

"in the budget submitted to the city and in the Chart I sent you...under clean and green there is a line item for $15,000 labeled Public services...wtf is public services....DGI mid year report claims that some of this $15,000 is for Banner maintenance...the problem is that Banners for downtown is supposed to be handled by Grassroots..so is Grassroots charging the city for an activity that DGI is performing and charging for as well...Betty (Cone) being on both executive committees could have something to do with this... it gets more disgusting, the more we dig... These "good for the community" folks sure have taken advantage of us for a long time."

This isn't the first time I've brought you news of Betty Cone with her fingers in the cookie jar. The last time was confirmed by the Greensboro News & Record and the Internal Revenue Service.

Betty Cone, Still No Ducks In A Row

After I broke the tax evasion story last year on Betty Cone and Grassroots Productions Limited I recently heard from some readers looking for a follow-up.

Grassroots last updated their filings with the North Carolina Secretary of State in 1995.

According to the Grassroots website:

"Grassroots Productions Limited is a Greensboro, North Carolina, corporation focusing on charitable and educational activities which foster interest in local history and events in Guilford County. Grassroots Productions produces two holiday festivals annually -- Fun Fourth Festival, celebrating our nation's independence in July, and the Festival of Lights, a winter festival on the first weekend of December."

Yes, it does say corporation but is it clear that Grassroots is a for profit corporation? According to the NC Secretary of State, Grassroots remains a non profit. Which is it?

Also from Grassroots website:

"Grassroots Productions Limited's Downtown Banner Program is responsible for all banners and holiday decorations in Greensboro's downtown."

Is that banner program not funded by the City of Greensboro?

"Grassroots Productions Limited also provides technical, logistical and administrative support to other organizations and events such as the South Elm Urban Market, the Greensboro Bicentennial Commission for the Greensboro Bicentennial, the Greensboro Coliseum for Tournament Town Goes Downtown and Greensboro Ballet."

Are those other organizations not funded by the City of Greensboro? Are they willing to risk their good names?

"Grassroots Productions is Action Greensboro's Special Event Manager for Center City Park and is responsible for all things related to Special Events in the Park."

We all know full well that Action Greensboro and Center City Park are both heavily funded by the City of Greensboro?

Is Grassroots a for profit or a non profit? How can we tell? Why can't the nice Betty Cone with all her connections and all her well-to-do friends get her ducks in a row? Has she been so busy trying to get her piece of the Greensboro Performing Arts Center plunder that she completely forgot about filing documents with the State of North Carolina just like she "forgot" to pay her Federal Income Taxes for 4 years in a row or is there more to the story than we've been told?

Is the City of Greensboro going to fund a company whose legal status is still open to debate? Is the City of Greensboro going to allow others to launder taxpayers' money to a company whose legal status is still open to debate? It's only been 6 months, when will Betty Cone get her ducks in a row and when will we know?

The GPAC Push Continues: Gail M. LeBauer

Another LTE in today's News & Record. Notice they didn't mention the writer just happens to be a member of the GPAC Task Force:

"Counterpoint: Arts center would bring us together

By Gail M. LeBauer

Following the Greensboro Massacre on Nov. 3, 1979, our community became fear-based and xenophobic, with parts of the city divided and removed from one another. During that same year, the United Arts Council, with the corporate support from Miller Brewing Co., was granted $75,000 for a city arts festival, otherwise known for the following 20 years as City Stage.

Our streets had been empty and our communities were filled with a pervasive mistrust. City Stage launched the following fall with citywide participation of 75,000 the first day, a Saturday, and 50,000 on Sunday. I remember it well because I was fortunate enough to be president of the United Arts Council when City Stage was launched due primarily to the extraordinary efforts of Betty Cone and Helen Snow, then executive director of the UAC.

Why do I write this? The role of the arts has always been to be a convener of people; arts has always bridged economic, racial, and religious divides to unite us. Our city came alive again and people did what they always do when spaces and places are filled with sounds, aromas and arts in action.

Somehow we have gone off track; the proposed Greensboro performing arts center and surrounding park place is not elitist, nor for only a “chosen” segment of this wonderful community. It will serve the tradition of arts throughout time as a convener of all ages, races and disparate economic factors, whether inside the arts center space, or in the wonderful outdoor spaces connecting our other vibrant resources: the library, the United Arts Council, the Historical Museum and the nearby Children’s Museum."

Well Ms LeBauer, why don't we begin with why City Stage went out of business. You and your kind don't know how to operate in a competitive environment. City Stage did fine until a little town called Asheboro dared to open an event on the same weekend charging vendors-- the backbone of your event-- 1/3 the price of a space at City Stage. In no time at all City Stage was gone. How do I know this? I was a City Stage vendor. You, Betty Cone and the rest have spent your lives living on other people's money with no idea how hard it is to make it on your own, now Betty Cone is caught for tax evasion and forced into the private sector and your money is running out so you're looking to the taxpayers to bail you out. I'll give Betty Cone 2 years before she closes her doors, PAC or not, your existence depends on GPAC and we all know it. Get a job!

We all love the arts Ms LeBauer, but like you, we like eating and roofs over our heads first and foremost. I'm sure you have family that will take you in just like my family took me in. And if not good luck at the shelters. Don't wear any rings, the addicts will cut your fingers off to steal them.

I wonder if any of the LeBauers were among those big cars coming from the direction of Greensboro?

Like I wrote yesterday, "Mark my word people, in two weeks there will be a huge effort at the next Greensboro City Council Meeting to take away your right to vote on GPAC next November and if Greensboro citizens do not outnumber the bought and paid for task force consultants and speakers who are all paid to be there the Greensboro City Council will vote to build the downtown Greensboro Performing Arts Center at taxpayers expense.

And mark my word, Greensboro, this time I'm not speaking for you. You are on your own."