California Appoints Former State Attorney General As Overseer of $9 Billion Getty Trust
The California Attorney General Bill Lockyear says a one-year investigation of the Paul Getty Trust in Los Angeles confirms that funds were inappropriately used. John Van de Kamp, a Los Angeles district attorney and an a former state attorney general, has been appointed as the independent monitor who will oversee the charitable trust for one year. One of his responsibilities will be to monitor the bi-annual reports that the trust is now required to give to the attorney general’s office.
Reports of inappropriate conduct included the use of $21,500 in charitable funds to purchase artwork for retiring trustees. Funds were also used to pay for first-class travel and expensive dinners for Barry Munitz, the Getty’s former chief executive, and his wife. No charges will be filed. The J. Paul Getty Trust is the third largest private foundation in the U.S.
In California, the Attorney General is the legal overseer of charities that do business in the state. The Attorney General can:
· Conduct investigations and bring legal actions to protect the assets of California charities and insure the assets are used for their intended charitable purposes.
· Has jurisdiction to investigate alleged mismanagement of assets belonging to nonprofit schools and hospitals.
The California Attorney General’s Office provides the following checklist for registering a chairtable trust:
· Contact information for organization (i.e., name, address, e-mail address).
· A copy of the organization’s founding document, as follows:
For Corporations - Articles of incorporation and all amendments. If incorporated outside
California, enter the date the corporation qualified through the Secretary of State’s Office to conduct activities in California.
For Associations - Instrument creating the organization (constitution or articles of association).
For Trusts - Trust instrument or will and decree of final distribution.
A copy of the organization’s bylaws.
A complete listing of the names and addresses for all directors, officers, and trustees.
The organization’s annual accounting period.
Statement of activities in California and date commenced business in California.
A copy of the IRS determination letter. If the IRS has not yet granted the organization its tax exemption, please indicate the FEIN for the entity and when the organization applied to the IRS for tax-exempt status.
$25.00 initial registration fee. Make check payable to Department of Justice.
Under California law, all charities and commercial fundraisers must register with the Attorney General’s Office. They must also file financial disclosure reports.
With offices in San Jose, Monterey, and Fremont, Sagaria Law, P.C. can help you set up your charitable trust and handle any other estate planning matters. Contact Sagaria Law, P.C. for a free consultation.
California General Appoints Overseer of Reforms at J. Paul Getty Trust, NY Times.com, October 2, 2006
California Appoints Overseer at $9 Billion Getty Trust, Cbc.ca, October 3, 2006
Charitable Trusts, Office of the Attorney General, California
Charitable Trust Forms, Office of the Attorney General, California
Related Web Resource:
The 50 Largest U.S. Foundations, USAToday.com
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