By Susan Carroll
Houston Chronicle Tucson, Arizona | Published: 11.23.2006
HOUSTON - For the first time, the Minuteman Civil Defense Corp. has revealed a smattering of intriguing details on its finances, but some former members want to know more about how the group has spent hundreds of thousands of dollars in contributors' money.
Chris Simcox, the founder of nonprofit border watch group, posted IRS forms and an audit on his Internet site Nov. 15 in response to media reports raising concerns about how the group was handling its contributions.
"Just too many irregularities"
The new documents offer a glimpse into the organization's finances, former Minuteman loyalists say, but leave several unanswered questions.
Among them: How are the Minutemen spending thousands of dollars in membership fees they've collected over the past 19 months? And what companies or other nonprofits received $277,000 - amounting to more than half the group's contributions in 2005 - for unspecified "personnel services?"
Already, questions about the group's finances and other concerns have prompted some leaders to quit. Bill Parmley, the former head of the Texas chapter of the MCDC, was one of the first leaders to leave in July 2005.
"There were just too many irregularities," Parmley said in an interview this week. "I just didn't want to be involved in something like that."
Simcox and his spokeswoman, Connie Hair, did not respond to repeated phone calls or messages. In barnstorming stops across the country last year, Simcox told crowds of new recruits that the organization charged a mandatory $50 membership fee for background checks. He made exceptions for anyone who already had a concealed-weapons permit, which requires an extensive background check, and for former law-enforcement officers.
Questions surface over $50 fee
But the group's recently posted IRS Form 990 - a public record required for all nonprofits - shows the group spent only $1,074 on background checks for volunteers in 2005 while charging new recruits $50 each and collecting more than $54,000 in registration fees.
Kenneth Buelter and his wife, Daphne, former Minuteman loyalists, recalled meetings where MCDC leaders explained the $50 fee. "They told us it was for background checks," said Daphne Buelter. Months later, the couple decided to distance themselves from the movement, even though they still believe in the cause. "There were a great deal of unanswered questions," Daphne Buelter said.
The records Simcox posted on the Web seem to answer some of the more serious questions raised by former MCDC members this summer. The audit Simcox made public shows an accredited firm signed off on the group's finances for the 2005 tax year. IRS documents filed by the organization showed that it received more than $418,000 in contributions during 2005 and owed about $31,000 at the end of the tax year.
Independent accountants who reviewed the report at the Houston Chronicle's request said the MCDC's finances appear to be in line with many not-for-profits that are just starting out. Simcox defended the spending on the group's Web site. According to the IRS documents, the MCDC dedicated 62.5 percent of contributions to programs, 5.2 percent to management and administration and 32.3 percent to fundraising.
In his Web posting, Simcox wrote that the breakdown was "much better than most first-year start-up national organizations." He also lashed out at the press for stories questioning the group's financing, accusing the media of "egregiously false or erroneous reporting as well as some outright malicious lies."
Group started in Arizona
The Minuteman Project, the original name for the civilian patrol group, kicked off in April 2005 in Arizona amid a media frenzy.
Parmley, who joined the movement out of frustration over the relentless flow of illegal immigrants across his ranch in South Texas, said he resigned mainly because he was concerned about suspicions of racist attitudes in one Minuteman branch. But he said he was also troubled because he couldn't get a straight answer on money management, including what happened to the registration fees.
Kim Fromme, the former director of operations for the Minuteman chapter in Texas, had similar concerns and quit in February. He said he could never figure out where the money for programs was going. "It didn't go down to the border, that's for sure," Fromme said.
He said he and other members approached Simcox with questions but came away disappointed. The MCDC still has plenty of supporters who rallied behind Simcox in the group's Internet forum.
"Thanks," one posting read, "this should clear up everything, even a kid in grammar school can now understand (it) . Way to go."
http://www.azstarnet.com/news/157353
This email was cleaned by emailStripper, available for free from http://www.papercut.biz/emailStripper.htm