An investigation has revealed that the city of Albuquerque paid $92,000 to a nonprofit organization that has ceased to exist. The International District Economic Development Center, which was established in 2019, has closed its doors, raising questions about the management of taxpayer funds and the accountability of city contracts.
Key Takeaways
- The International District Economic Development Center was funded by the city and county but has closed down.
- The nonprofit received $92,000 in taxpayer funds this year despite being inactive.
- City officials are now reviewing their relationship with the organization.
Background of the Nonprofit
The International District Economic Development Center was launched in 2019, heralded as a significant investment in Albuquerque’s International District. Mayor Tim Keller described its opening as a reflection of community investment and revitalization. However, just four years later, the center has become a shadow of its former self, with boarded-up windows and signs of neglect.
Financial Discrepancies
Recent findings from Target 7 indicate that the nonprofit received substantial payments from the city, totaling $92,000 since March of this year. This includes a $6,000 payment made in August, even after the organization’s nonprofit status was revoked. The funds were allocated for various initiatives, including:
- $10,000 for the International Festival scheduled for May.
- $26,000 for technical assistance to local businesses and workshops.
Despite these allocations, the current state of the nonprofit raises serious concerns about whether these services were actually delivered.
Compliance Issues
Montgomery Dillavou, an accountant specializing in nonprofit organizations, highlighted that the International District Economic Development Center failed to meet essential compliance requirements. Nonprofits must register with the Secretary of State, the IRS, and the New Mexico Attorney General’s Office, as well as file annual reports to maintain their status.
The organization initially registered but had its status revoked in August due to non-compliance. A search of IRS and attorney general records yielded no results for the organization, indicating it is effectively defunct.
City Responses
In response to inquiries about the payments, a spokesperson from the mayor’s office acknowledged the situation, stating that the city is concerned about the nonprofit’s difficulties and has ceased working with them. The Economic Development Department clarified that the payments were made for services rendered, including:
- Technical assistance for new and established businesses.
- Community enrichment activities and workshops.
However, the lack of communication from the nonprofit’s listed directors and the invalid contact information raises further questions about the accountability of these funds.
Conclusion
The closure of the International District Economic Development Center and the subsequent payments made by the city highlight significant issues regarding oversight and accountability in the management of taxpayer funds. As the city reviews its contracts and relationships with nonprofits, it remains to be seen what measures will be implemented to prevent similar situations in the future.
